LAND SOLUTIONS

Introduction
Buying vacant land is often seen as a simple, affordable way to get started in real estate. But, hidden beneath the surface are several unexpected costs that can catch buyers off guard. From fees to permits and unexpected taxes, the final price of land is often more than just the sticker price.

This blog will walk you through the most common hidden costs of buying vacant land — and, more importantly, how to avoid them.

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1. Survey and Property Boundary Costs
When buying raw land, you may need to pay for a survey to ensure property boundaries are accurate. Surveys can cost anywhere from $500 to $1,500 depending on the size and location of the land.

How to Avoid It:

• Ask the seller for any existing boundary surveys.
• Factor survey costs into your budget before you buy.

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2. Environmental Testing Costs
Environmental issues like soil contamination can cost thousands to clean up. Testing for hazardous materials, drainage, and soil composition is essential if you plan to build.

How to Avoid It:

• Order an Environmental Site Assessment (ESA) during your due diligence period.
• Work with a professional environmental consultant.

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3. Utility Connection Fees
Most vacant land isn’t “plug-and-play” ready. You may have to pay to connect electricity, water, and sewage. Connection fees can range from $1,000 to $20,000+.

How to Avoid It:

• Ask if the land is “improved” (has utility hookups) or “unimproved”.
• Get an estimate from local utility providers for hookup fees.

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4. Property Taxes
Just like houses, vacant land has property taxes. But unlike a home, vacant land taxes may not be immediately obvious. Property taxes are calculated annually based on the land’s assessed value.

How to Avoid It:

• Contact the local tax office to get an estimate of property taxes before purchasing.
• Look for areas with lower property taxes (some areas offer tax incentives for certain buyers).

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5. Permit Fees and Zoning Changes
Before you can build on vacant land, you may need several permits (like building permits, environmental impact permits, and zoning changes). Permit costs vary by county and state.

How to Avoid It:

• Research zoning laws and building permit fees for your location.
• Work with a real estate attorney to understand any legal changes that need to be made.

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6. Maintenance Costs (Clearing, Mowing, and Upkeep)
If your land is in a rural area or surrounded by trees, you may have to clear and maintain it regularly. Clearing trees can cost $500 to $2,000 per acre, depending on the area.

How to Avoid It:

• Choose a lot that’s already cleared.
• Factor these costs into your budget if the land is densely wooded.

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Conclusion
Hidden costs can turn your dream land purchase into a costly mistake. But with the right due diligence, you can spot and avoid these fees before signing any contracts. By following the tips outlined here, you can save thousands and make your land-buying experience as smooth as possible.