Vacant land remains one of the most underappreciated and misunderstood real estate investments available today. Many real estate investors completely fail to recognize the incredible benefits that come with owning land in its raw form.
The simplicity and stability of owning the right piece of land, purchased at the right price, can far outweigh the countless problems that inevitably arise with other types of real estate investments.
While I strongly believe that vacant land is one of the smartest places to put your money, there’s another side to the story that deserves careful consideration.
As an experienced land investor, I’ve learned (sometimes the hard way) that several critical factors need thorough evaluation before purchasing any parcel of vacant land.
Land: Deceptively Complex
Vacant land may appear simple on the surface, but numerous potential problems can lurk beneath any property. While these issues aren’t necessarily common, any single one could become a major liability if not discovered before purchase.
Don’t misunderstand—land remains a rock-solid investment. The key is knowing what to watch for during your due diligence process and understanding when to adjust your offer price or walk away from a deal entirely.
1. 
Zoning
First, it’s crucial to understand what a vacant lot can be used for and its highest and best use. A simple call to your local planning & zoning department can usually provide a quick answer to this question.
Once you know the zoning classification (residential, commercial, industrial, agricultural, etc.), ask for examples of allowed property uses under this zoning type. They may even suggest options you hadn’t considered.
Understanding the ideal use for your potential land purchase helps you quickly determine if it meets your needs (or the needs of future buyers).
How to Check Zoning:
Zoning is typically managed at the city or township level. Start by identifying where the property is located, then search online for “[City/Township Name] Zoning Map” or contact the local zoning office directly. Make sure to have the parcel number ready.
Once you know the exact zoning classification, you can either contact the zoning office to confirm allowed uses or search online for the local zoning ordinance to find detailed rules and restrictions.
2. 
Topography
When buying land in areas with variable terrain (cliffs, mountains, valleys, ravines), understanding the property’s topography should be your first priority.
A property’s topography significantly impacts its buildability, and difficult-to-build land can suffer a huge negative impact on value.
How to Check Topography:
The easiest way is through tools that show topographic contour lines. Google Earth can also be helpful—you can search for your property and tilt the view to see hills and valleys in the area.
3. 
Property Taxes
If you plan to hold a property long-term, understanding the annual property tax cost is essential.
For most vacant land, property taxes are relatively low, but exceptions exist. Be cautious of unusually high tax bills compared to property value—for example, a $10,000 property with a $2,000 annual tax bill is excessive.
Based on experience, reasonable annual tax bills typically fall between 1% and 4% of the property’s full market value.
How to Check Property Taxes:
Determine which city or township the property is located in, then search online for “[City/Township Name] Property Taxes” to find the municipal website where you can search for the property by parcel number or owner name.
If you can’t find the information online, call the city or township Treasurer (Tax Collector) directly with the parcel number and ask them to verify the property’s tax details.
4. 
Public Utilities
If a property lacks access to essential public utilities like water, sewer, electricity, gas, or phone service, it may not be ideal for construction.
Would you want to build a house where you can’t flush the toilet, access clean water, or power your appliances? While alternatives exist—septic systems, well water, solar energy, propane tanks—these add significant costs and complexity.
The absence of utilities can greatly diminish a property’s value, particularly if the highest and best use is for building.
How to Check Utilities:
Identify local utility providers for services like water, sewer, electricity, gas, phone, and internet. Contact them with the property address or parcel number to confirm service availability.
When visiting the property, look for visual signs of utility access, such as power poles, water meters, or gas line markers.
5. 
Building Setback Requirements
Building setback requirements are common and give order and consistency to buildings in an area.
When considering these setbacks relative to parcel size, ask yourself: Is there still enough room to build something worthwhile? Can I build in the ideal area, or will setbacks interfere?
I’ve encountered several properties too small to build on because of their size relative to required setbacks. If a property isn’t buildable or has severely limited uses, it loses significant value.
How to Check Building Setbacks:
Once you understand the dimensions of your potential property, call the local planning department, provide the parcel number, and ask about designated building setbacks.
6. 
HOA and Other Usage Restrictions
Most vacant land comes with SOME usage restrictions (there’s a reason you won’t see a pig farm next to a skyscraper or a shopping mall next to a landfill).
Every municipality has a plan for different land sections, regardless of ownership. If the property belongs to a Home Owner’s Association (HOA), expect even more restrictions to maintain neighborhood quality.
Usage restrictions aren’t necessarily bad—they usually exist for good reasons and help maintain order and property values. However, if you’re unaware of these restrictions before purchase, they could conflict with your plans for the property.
How to Check for HOAs and Restrictions:
Request recorded documents from the county recorder’s office, which often reference HOAs or covenants, conditions, and restrictions (CC&Rs).
You can also search online for the subdivision name or contact neighbors or the local zoning/planning office for information about HOA regulations in the area.
7. 
Flood Zone
Some parcels remain vacant because they’re literally underwater. Others near bodies of water may face high flood risks.
If a property sits in a flood zone, know this BEFORE buying—flood zone properties can be extremely expensive to insure.
Waterfront property can be extremely valuable, but proximity to water creates potential issues you need to understand.
How to Check for Flood Zones:
Visit FEMA.gov or use the NFHL Viewer to check if your property is in a flood zone.
8. 
Perc Test or Sewer System
For rural properties without access to municipal sewer systems, a “Perc Test” (Percolation Test) becomes crucial. This soil evaluation tests how water drains through the soil and determines whether a septic system can be installed.
If a property fails this test, building a dwelling becomes very difficult—so unless you can connect to the municipal sewer system, contact the county health department to understand septic system requirements in your area.
How to Do a Perc Test:
Contact your county Health Department for guidance. In some counties, they administer the test themselves; in others, they’ll refer you to an independent contractor.
For very cheap properties where the cost of a perc test exceeds the property value, you might do a basic “desktop perc test” by examining nearby properties with houses and septic systems or using soil analysis tools.
9. 
Road Access
Surprisingly, thousands of properties across the country are landlocked with no road access—surrounded by private properties with no legal way to reach them.
This issue can sometimes be resolved by obtaining a legal easement from surrounding neighbors, but this often comes at a cost.
Landlocked properties aren’t always deal-breakers—sometimes they present opportunities, especially if neighboring owners want to buy them. The key is knowing this early so you can adjust your offer accordingly.
How to Check for Road Access:
Find your property on Google Earth and look for roads touching the property boundaries.
10. 
Physical Access
Some properties lack road access but offer physical access through common areas or government-owned land.
Even without a road, the ability to access your land without trespassing over someone else’s property provides an important benefit.
For obvious reasons, property with any physical access is preferable to completely inaccessible property.
How to Check for Physical Access:
If no roads lead to your property, examine maps for potential access routes. Simple foot trails or ATV paths connecting to public roads can indicate established physical access.
11. 
Size, Shape, Dimensions and Location
I’ve seen virtually useless properties due to odd shapes and sizes—including one parcel 5 feet wide and 900 feet long, and others just 10 feet by 10 feet square.
Use common sense when evaluating oddly shaped parcels. If you can’t imagine legitimate uses for a property with its dimensions, consider passing.
How to Check the Size, Shape, Dimensions and Location:
Use your county’s GIS mapping system or Google Earth to find parcel maps showing the property’s dimensions.
Remember that online mapping systems aren’t perfect—a land survey provides the only 100% certainty about size and shape.
12. 
Water Access
Many properties lack municipal water access. This isn’t necessarily problematic but means someone will need to drill a well.
If nearby buildings exist, you likely won’t have water access issues. For isolated properties in deserts or mountaintops, verify water accessibility before purchase.
How to Check for Water Access:
Contact municipal water providers to check service area boundaries or search for “[City/County Name] Water Utility Service Area Map” online.
For properties without municipal water, research groundwater resources through the US Geological Survey database or state geological surveys to assess well-drilling potential.
13. 
Wetlands
Wetlands create tricky situations for landowners. Throughout most of the U.S., federal and state laws prohibit development that adversely affects wetland areas, making them largely unusable for development.
How to Check for Wetlands:
For 100% confidence, hire a wetlands consultant to conduct an on-site delineation.
For preliminary research, use online Wetlands Mapper tools or the USDA Web Soil Survey—though these provide educated guesses rather than certainty.
14. 
Junk, Tires, Rubble, Oil, or Other Contaminants
Occasionally, what appears to be vacant land turns out to be an informal dumping ground. Ensure you’re buying just LAND, not a cleanup project.
These messes can be expensive to address, so always try to see the property before purchase or arrange for someone to visit and photograph it.
How to Do a Site Visit Remotely:
Consider posting a job on Craigslist for a local photographer to visit and photograph the property.
Contact local real estate agents who might swing by and take pictures, especially if you show interest in future business.
For a few hundred dollars, hiring a local drone pilot provides excellent aerial perspective, particularly valuable for vacant land.
15. 
Previous Uses
Environmental laws typically apply to commercially zoned properties. When considering commercial development land, ensure you’re not inheriting environmental contamination.
For commercial properties, consider ordering a Phase I Environmental Report to identify any “Recognized Environmental Concerns” (RECs).
Neglecting environmental due diligence could leave you liable for existing contamination, complicating future sales.
How to Check the Historical Uses:
Use Google Earth’s historical satellite imagery to quickly view what has happened on and around the property over time.
16. 
Surrounding Neighborhood
Neighboring properties significantly impact land value and salability. Would you rather live next to a national park or a landfill?
People care deeply about their surroundings, so understand what nearby properties look like. If the surrounding area has obvious issues beyond your control, carefully consider the implications for your property’s value.
How to Check the Surrounding Neighborhood:
Use Google Earth and Street View to examine adjoining properties and the general neighborhood character.
17. 
Soil Quality
For agricultural land and crop growing, soil quality is paramount.
Factors including soil health (salinity and alkalinity), water table status, fertility, historical crop yield, and more determine whether land offers good, tillable soil.
18. 
Load Bearing Capacity
Many land buyers commission geotechnical investigations before development to determine how much weight the ground can support.
If soil is too soft, building foundations can sink, causing structural damage. A geotechnical investigation provides critical information about building suitability and necessary soil modifications.
Not all vacant land purchases require this investigation—established subdivisions likely completed this assessment during initial development.
19. 
Title Search
When closing through a title company or attorney, they’ll handle the title search. If buying directly from the seller (not recommended for significant purchases), verify you’re receiving clear title to the property.
Key elements include:
- Ensuring you receive a warranty deed
- Performing a title search to confirm clear chain of title and no outstanding liens
- Understanding any restrictions, easements, or rights others may hold (mineral, timber, crop, grazing rights, etc.)
20. 
Site Plan and Preparation
For properties intended for construction, many overlook site planning and ground preparation costs.
Every construction project needs a comprehensive plan for both the building and the land beneath it. If the ground needs reshaping, wells need drilling, or utility lines need installation, these must be understood before starting.
Civil engineers typically create these plans—often at significant cost. Consult with your general contractor or a local civil engineer to estimate these additional expenses.
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