How to Buy a Vacant Lot

You drive past an empty lot covered in tall weeds, scraggly bushes, bottles and think to yourself about what you could build on the vacant lot. An office building, small shop, or a house with a huge backyard. Purchasing vacant land is essential when you have plans for a new home or business. Outside of city limits, it is easier to buy and develop vacant land, but for empty lots within city limits, it can be more difficult. Here is a guide to purchasing vacant land so you can pay a fair price and avoid common real estate hassles.

(1) Make a plan for developing the land. While you research the ownership history of the land, people will ask what you intend to do with the lot after you purchase it. Having a prepared answer will make people more willing to help you find the owner, and make the owner more interested in selling.

(2) Find the owners. This is probably the most difficult part of making an offer on a piece of vacant property. Inquire with the owners of the neighboring properties first. One of the neighbors may have contact information on the owners, or one of the neighbors may in fact be the owner.

If the neighbors don't know, type the address into a search engine. You may find public documents about the vacant lot or even the name and address of the owner. If an Internet search does not turn up any results, visit the tax assessor's office. This may be under your city or county government. If the vacant lot is owned by a private citizen, then the owner must be paying property taxes. Alternatively, you may discover that the land is owned by the city or county.

(3) Investigate the owner and any tax liens. Often, people who own undeveloped properties have tax liens on the property. If the owner is behind on taxes, you can negotiate a lower price for the vacant land. Depending on your jurisdiction, you may have to pay a fee to access these records. You can also hire a lawyer or real estate agent to do the leg work, but it is cheaper to do it yourself.

(4) Determine the exact boundaries of the land by visiting an office of public records. The neighbors and owner may not know the exact boundaries of the land if there is no fence around the property. Sometimes, neighbors of vacant lots illegally encroach on the land, erecting fences beyond the property line. Before you purchase vacant land, get the true boundaries in writing from a public official. This will help you settle disputes with the neighbors.

(5) Once you have located the owners and researched the property, hire a real estate agent to help you buy the land. A real estate agent can advise on the property's worth in the current market.