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vacant land with wide open spaces

Buy Beware! 5 Things to Consider When Buying Vacant Land

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Vacant land seems like it would be a very straightforward deal when it comes to real estate. Without an established structure you don’t have to worry about the condition of a foundation, what a home inspector will find, and you get to make all design choices yourself, but whether you’re looking for a spot to build your dream home home, you want acres of hunting land, or you have dreams of harvesting lumber from an established forest there are a variety of considerations that need to be made.

1. Zoning

Depending on where the land you’re interested in is located, you may run into issues with zoning. While some zoning laws are pretty laissez-faire (Houston, we’re looking at you!) there are others that are very strict as to what can be done on the land. If you have dreams of having a dog kennel or in-home daycare or any other home-based business, you’ll want to make sure that unexpected issues won’t arise from this after you close. Keep in mind that both the county and the city may have zoning rules in place.

2. Plot Lines

If you’re interested in a vacant parcel because of a certain feature– water frontage, mature fruit trees, anything– you’ll want to make sure it’s actually on your property. Without houses, fences, or a well-staked property, it can be hard to determine what would be yours and what would be your neighbors and that’s not something you want to learn after putting in an offer.

3. Land Type

When you think you’ve found the perfect piece of land, you can develop a blind spot over the weaknesses of the property. Sure, it seems perfect to tuck your home back from the road, but will the driveway cross through protected wetlands? Your dreams of a cozy basement can easily be derailed by silty or sandy soil, would you be okay if it doesn’t work out?

4. Weather/Seasonal/Nature Factors

If you’ve lived in the area where you’re planning to buy, you may know some things to look out for. While most things can be fixed with proper grading or covered with the right insurance, if you’re not planning (or budgeted) to make changes, you may need to pick a new spot. For the Midwest, you’ll want to watch out for what drainage will look like after the snow melts. For the coasts you’ll want to consider the floodplain and in the mountains you should watch the topography.

5. Accessibility

You’ll want to know exactly what you can expect for buying this particular piece of land. Is it already prepped for sewer/water/electric? Can you drill a well if need be? Do you have a plan and/or budget for any of the above if the answer is no? You’ll also want to be sure that you can access the land you purchase. Believe it or not, there are thousands of properties across the U.S. that have no road access whatsoever because they are completely landlocked by other private properties. In cases like this, you can generally legally establish an easement, meaning a neighbor will grant you access to your property through theirs (usually via access road or driveway), but it’s something that you may have to pay extra for and will definitely want in writing.

Keep in mind, these are just some of the considerations when purchasing vacant property. To protect yourself you should always do your due diligence and start with a clear vision of what you’re looking for. It also may be a good idea seek out a licensed real estate agent for help if you need advice.

Things Your Real Estate Agent Can’t Tell You

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5 things agents can’t tell you (and how to find out yourself)

Using a real estate agent is a great way to avoid many of the headaches (and potential heartaches!) associated with buying or selling a home. As part of their services they can help you appropriately price your home, negotiate on your behalf, and their access to an MLS –an exclusive network of property listings– can help you sell your home or find the right one before the general public ever sees it. But, as licensed professionals, there are some things that your agent can’t tell you.

Not won’t tell you, but legally or ethically, I’m-sorry-but-I-really-cannot-tell-you.

Now that doesn’t mean you’re on your own and just have to hope for the best, though. For that information, you’re going to have to do some of the digging yourself. Here are the 5 surprising things your real estate agent can’t tell you.

“This area is great for young families!”

This one seems so innocent and well-intentioned, but is actually illegal! Maybe you passed a park on the way to the home or noticed the nearby elementary school, but whether you’re looking to live in an area where your kids can roam with the neighbors or you’re trying to avoid children altogether, your agent isn’t allowed to tell you who lives in the area.

Reasoning: Under the 1968 Fair Housing Act, family structure is a protected class meaning a comment like this could dissuade older couples or a single party from the property, making it illegal.

How to find your answers: If driving through the area isn’t an option, Google maps is one of the best tools for doing neighborhood recon. Simply type in the address of the property you’re looking at and check out the area you’re interested in. Are there parks and schools nearby or is it in a more industrial area? Is the area filled with side streets and cul de sacs or is it on one of the main roads? Depending on what you’re looking for you may want to switch your search based on what you see.

“You don’t want to live in that area. That’s where the [nationality, gender, age group] live!”

In addition to not telling you where to live based on the demographics, your agent also cannot tell you not to live somewhere because of the people in the neighborhood.

Reasoning: As mentioned above, the Fair Housing Act prevents any discriminatory statements based on protected classes.

How to find your answers: You can find out more about the general demographics of an area by checking out the US Census Bureau’s website. This tool, with most recent studies being from 2016 can tell you the age, sex, and race of the population down to a zip code level.

“Are you sure you’re interested in that area? It’s pretty high crime.”

While you might think that an agent saying this is just looking out for you, this is another no-no statement. Crime statistics are public information, but because crime rates often lead to conclusions about the racial makeup of an area, your agent is best protected by letting you find your own conclusions.

Reasoning: Race is a protected class under the Fair Housing Act and whether it’s the intention or not, discussing the crime rate of a particular area could lead to assumptions about the racial makeup of that area.

How to find your answers: If finding out about crime in an area is of particular interest to you there are plenty of free sources to look. The National Sex Offender Public Website (NSOPW) offers a location-based lookup that links the data from public state, territorial, and tribal sex offender websites. To find incident-level crime lookup, you may have to check a couple of website as not every jurisdiction reports to every available site. Here are some good ones to start with: MyNeighborhoodUpdate, CrimeReports, SpotCrime, and NeighborhoodWatchDog. You can also check the website of the local police station as they may provide a link to the crime mapping site they use.

Buying home is an emotional time. It’s a big investment with a lot on the line, but having an agent you trust can make all the difference. Ready to take the leap and connect with a top agent? Check out Cashifyd, a program offered by RealtyHive that connects you with top local agents who offer cash back incentives when you buy or sell your home.

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Event Marketing: A New Tool for the Trade

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Read this next sentence and tell me if it sounds familiar. Lately, when you get a listing for a modestly-sized, fairly priced home and before you know it you get SO much interest, you can barely add it to your MLS before you start receiving offers– some even above list price. But when it comes to your commercial listings, vacation homes, or even some residential properties, for whatever reason, some properties just sit. And sit. And sit. Your sellers start to get restless, your listing expiration is coming up, and you’ve already considered a price reduction. What are you to do? Sure, almost everything will sell if you wait long enough, but that’s not the strategy that will make your sellers happy, after all, they’re ready to sell, not wait for some time in the eventual future. This is where event marketing can help.

What is event marketing?

Event marketing is an online auction marketing strategy that helps properties rise above the noise and clutter of traditionally marketed listings and grab the attention of potential buyers. Once an interested buyer becomes aware of the property, a genuine sense of urgency develops due to the auction format. Since there is a specific time and date assigned to obtain this “deal”, buyers have to act. This sense of urgency typically creates a very competitive bidding environment. Whether it’s at the online event or at any time prior to the event. In many cases, properties can sell prior to the event if the potential buyer’s offered “pre-auction” bid entices the seller to remove the property prior to the scheduled online event.

Advantages of Event Marketing for Real Estate

Increased exposure on a global level

It used to be that home buyers usually lived near the area they were buying. With the advent of telecommuting and increased globalization, buyers can come from anywhere in the world these days. In fact, according to the National Association of Realtors, foreign buyers closed on $135 billion worth of residential US real estate between April 2016 and March 2017. This is why online marketing is so important. Sure, a potential buyer could find your listing from your local MLS’s website, but why leave it to that? Using an event marketing platform exposes your property to a global audience, at no cost to you, the agent. Additionally, you can use it to generate more interest (and more offers) on your listing from all over the world.

Alternative to Price Reduction

One of the hardest subjects to tackle with your sellers has got to be the price reduction talk. Your sellers are emotionally and financially invested in their home. For this reason, it can be hard to convince them that it is not worth the price they’d like to ask for it–especially if they’re looking to sell quickly. While having hard facts can help with this discussion, for example talking them through what similar homes in their area have recently sold for, it doesn’t always go well.

Using an event marketing platform allows homes to have a lower suggested opening bid than current list price to attract more buyers. Yet, it allows the sellers to remain in control of the actual sale price. For example, a home can be listed at $390,000 with an opening bid of $290,000. If the seller receives a high bid of $350,000 they have the choice to accept the bid and move forward with the sale (after all, a bird in the hand is worth two in the bush), or reject the bid and start the process again.

The advantage of taking a property to auction in this method is twofold. On one hand a lower opening bid attracts more attention, more attention creates competition, and competition ultimately raises the price. On the other hand, this method can help determine the true value of a property. If a seller is receiving offers that are tens of thousands of dollars less than asking price, they may see the property is overpriced for the current market conditions.

Tool for Listing Extension

One of the most difficult parts of being a real estate agent is having your clients see the value of the service you provide. Sites such as Zillow assist sellers with by owner sales and a hot housing market. This leaves many clients wondering what you are doing that they couldn’t themselves (hint: a lot, but that’s a subject for another day). One of the advantages of event marketing is that it is another tool in your arsenal to extend your listing. You can go to your clients with this new and innovative process to help gain exposure and increase activity for their home. Interested in getting started with event marketing? Whether its commercial buildings or vacant land. Luxury homes or the Caribbean islands. RealtyHive has the experience and tools you need to move your listings through its event marketing platform. Click here to learn more or get started today!