Buying land is exciting, but many buyers overlook hidden costs that can quickly add up. Before making an investment, it’s crucial to understand these expenses to avoid surprises. In this post, we’ll break down the most common hidden costs of purchasing land so you can budget accordingly.
1. Land Surveys & Property Boundaries
Before purchasing, it’s essential to verify property lines through a land survey.
- Cost: $500–$2,000
- Ensures no disputes over boundaries
- Required for certain zoning permits
2. Soil Testing & Perc Tests
Planning to build on your land? You’ll likely need a percolation test (perc test) to determine if the soil is suitable for a septic system.
- Cost: $300–$1,500
- Required in rural areas without sewer access
3. Zoning & Permits
Every parcel of land has zoning regulations that dictate what you can and cannot do.
- Rezoning fees: $500–$5,000
- Building permits: $1,000+
- Environmental impact studies: Required in some areas
4. Utility Connections
If your land lacks utilities, connecting to water, sewer, and electricity can be costly.
- Electricity installation: $1,500–$10,000
- Well drilling: $3,000–$15,000
- Septic system: $5,000–$15,000
5. Property Taxes & HOA Fees
Even vacant land incurs property taxes, which vary by state and county.
- Annual cost: 0.5%–2% of land value
- HOA fees: $100–$1,000 per year (if in a managed community)
Conclusion
Understanding the hidden costs of buying land helps you plan a smarter investment. Always research potential expenses before purchasing to avoid unexpected financial burdens.
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