1) Location: Is the land you want to aquire within a half days drive of where you live? This has a bearing on how often you will utilize or enjoy the property. It has been my experience that if the land is too far away it could be a burden rather than an enjoyable asset.

2) Land Quality: Depending on the reasoning for buying land, land quality could affect the price and future worth of your property. For example; land with qualities such as streams or rivers running through it, oceanfront land, lakefront land, land in the mountains, land with views etc. These types of land investments will probably be a higher end investment initially, but by the same token a better investment for future value. The lesser the quality of land usually the longer it takes to increase in value and less enjoyable along the way.

3) Access: You should always make sure that any land investment has good legal and physical access. Usually this involves a close look at the Title Report. As far as physical access is it accessible year round? Are the roads leading to the property maintained, especially if it is in mountains where snow and severe weather is a factor. Improving some of these conditions while owning the land could increase value.

4) Easements: As with “Access” mentioned above it is important to check the Title report for easements that may have an affect on the worth and future worth of the land you are buying. If some neighboring land parcel has an easement through the middle of your land for their access this could significantly affect the worth of your property. It is not hard to check these things out if you know what to look for.

5) Financing: It’s the old saying “There are many ways to skin a cat” likewise there are many ways to finance land. Financing is usually a good way to go when you don’t want to tie up all your cash. Finance the land and put some money into improving the property right out of the gate! It is a good way to create some immediate worth. I have found that seller financing is an excellent way to go.

Original Article by Pete Nevin

Read more about Seller Financing in TIPS ON BUYING LAND: Part 2 - Buying Land with Sellar Financing.