We buy houses for cash in California. If you have a home in California that you need to sell fast, we can help. Buying land in California is an excellent way to grow your real estate portfolio. However, there are some things to watch out for before making a purchase. In our latest post, we will discuss what you should be aware of before buying land in California or the surrounding areas.
Buying land in California is a great way to generate profits using a hands-off investment. Most of the time, owning land won’t have any holding costs other than taxes. That said, not all lots are going to provide you with the same resale value or opportunities for development. Some lots may have unexpected costs, ultimately eating away at your final profit. Below, we will discuss some things you should watch out for when buying land in California.
Physical Issues With The Land
Some lots and plots of land have physical limitations preventing their development and decreasing their overall value. Even if you don’t plan to build on it, not being able to do so when you want to resell it will limit the number of potential buyers you will find. Many things could pose an issue to development, including topography, lousy soil, groundwater, endangered animals nearby, old structures, foundations, tanks buried on the land, excessive growth, and piled-up junk can all hinder development.
Availability of Utilities
A lot with a good resale value will have utilities readily available. Raw land doesn’t usually have much value until the availability of utilities has been put in place. Your land value can vary depending on if a property is on the city water system, has a well, or a septic tank. In many cases, people can request that utilities be put in themselves, but the cost and time can be excessive.
Deed Restrictions and Ordinances
When buying land, you will likely have a plan in your head of what you want to do with it. If your project includes development, you’ll need to ensure your goals are ok with the powers that be. Check with the city to ensure you aren’t violating any ordinances and won’t be hit with any building restrictions. Ensure that if an HOA governs the area, your structure is approved and follows its guidelines. The property will also need to be zoned appropriately. You can’t throw up a retail store in the middle of a neighborhood per se.
Accessibility
For land to have real value, you’ll need to be able to get to it. Sure some people want some land that is out of the way and not easily accessible. However, you don’t want to deal with easements or trespassing to get to your property. There should be some road leading to the property, even if it is windy.
Flooding
Flooding can be a major issue depending on where the lot is located. It’s not something you can necessarily see, so you’ll need to dig up some history for the area. You’ll need to check the area’s elevation about what’s nearby to get a better idea of your flooding potential. You can call a surveyor to help determine your risk so you don’t buy a piece of land that floods out each spring. You should also price out flood insurance. If the rates are high in the area, you may encounter roadblocks when you decide to resell.
While many people buy land to add to their portfolio, with big plans to profit, others have inherited or otherwise acquired land in Solano County but aren’t sure if they should hold on to it or sell. Every piece of property is different. Some can generate income, some should be developed, and other pieces of property should be resold, with the profits generated from the sale invested elsewhere. The right piece of land can be a very profitable and versatile investment when you know what to do with it. Below, we will offer 4 things you can do with land in Solano County.
4 Things To Do With Land In Solano County
Develop It
Imagine the profits you could generate from a tiny piece of dirt in Solano County. By looking at the property’s highest and best use, you can determine just how the property should be developed to generate the highest profit. You could potentially buy a lot for a few thousand dollars, build an economically priced house in Solano County, and resell for a gain of thousands. You could also turn it into a rental property, helping generate income for years.
Flip It
Maybe you have the opportunity to buy low and are confident you will be able to sell house for cash in Solano County at a profit. Some investors specialize in buying and selling land as their primary investment niche. It is easy to get started, and the risk is relatively low. While this situation might seem like a no-brainer, you should always have a backup plan if the sale falls through. Luckily, the costs to own land are not very much. But you may be out of luck if you count on those profits to pay for another investment.
Lease It
Yes, people rent out their Solano County. It may be more common than you think. Take a look at where the parcel is located. Could it potentially be used as parking for local events? Could a nearby business utilize it as designated parking solely for their customers? Other uses for leased land include farming, hunting, camping, and even your neighbor who may want to add the additional property. Before you lease out the land, ensure it is zoned accordingly. You don’t want to lease it to a business only to find out they can’t do what they had intended with it.
Hold It
Look at what the market is doing in the Solano County area. How has the land been performing in comparison to other investment types? Has there been a steady rise in prices, or has land value in your area stayed relatively stagnant? If you decide whether to hold or sell, you’ll want to learn about future development and how it will affect property values in the area. Growth in the area could increase the demand for land, leading to a bigger payday for you. However, you’ll want to watch for rising property values. With higher values come higher taxes. Will these taxes be a factor for you? How long will you have to hold to see a profit? If you must hold for a long time before making money, the taxes incurred should be factored into any potential profit.
Interested in more great articles? Read this one about Mistakes To Avoid When Downsizing Your Home in Sacramento.
Sell My House In Los Angeles County, CA, To An Investor
No matter which option you choose, make educated decisions by taking the time to understand all of your options. We’re here to assist you with your current situation. We are Solano County investors and can buy your house from you. This means you can sell a house for cash in Solano County directly to us, regardless of your situation.
When working with Sell Quick California, you don’t have to worry about fees and commissions! You can get a cash offer in just a few days as we offer cash for houses in Solano County County, CA.