Vacant land is one of the simplest kinds of real estate to own. There’s no building to maintain and no tenants to manage. It isn’t right for everyone, though. This guide covers why people buy land, the trade-offs to understand first, and what to check before you buy.
Why people buy land
A limited supply
Usable land is finite. In growing regions, more people and new roads, schools and jobs can increase demand for nearby land over time. Growth isn’t guaranteed, so location matters more than anything else.
Low upkeep
Raw land has no roof, plumbing or HVAC to repair and no tenant turnover. Ongoing costs are usually property taxes and, depending on the parcel, occasional mowing or clearing.
Flexibility
Depending on zoning and any deed restrictions, a parcel can become:
- A future home site or weekend retreat
- A place for a manufactured or tiny home, where allowed
- Recreational land for camping, hunting or fishing
- A small farm, garden or pasture
- A long-term hold
A lower starting price
Rural and edge-of-town parcels often cost far less than a house in the same area, which lets more buyers own real property.
Possible income and tax considerations
Some owners lease land for grazing, hay or hunting. Agricultural or timber use may qualify for special tax valuation in some counties. Rules vary by state and county, so check with the county appraisal district and a tax professional.
The trade-offs
- Little or no income. Most vacant land doesn’t pay you while you hold it.
- Slower to sell. Land usually takes longer to resell than a house.
- Financing is different. Bank loans for land often need a larger down payment than home loans.
- Costs to build. If you plan to build, budget for a driveway, power, water (well or tap) and septic.
What to check before you buy
- Access. Confirm legal, year-round access from a public road or a recorded easement.
- Zoning and restrictions. Make sure what you plan is allowed.
- Utilities. Find out where power and water are and what it costs to connect.
- Soil and septic. A perc test shows whether a standard septic system will work.
- Flood zone and wetlands. Check FEMA maps and the National Wetlands Inventory.
- Taxes and title. Confirm the annual taxes and that the title is clear.
Our land due diligence checklist covers each step in more detail.
Frequently asked questions
Is vacant land a good long-term investment?
It can be, especially in growing areas, but it is usually a long-term hold with little income along the way. Buy land you’d be comfortable owning for years.
How long do people usually hold land?
Many owners plan on five to ten years or more, depending on their goals and local growth.
Does land appreciate faster than homes?
Sometimes, near fast-growing cities, but not everywhere. Past growth doesn’t guarantee future results.
Browse available properties in Texas, Georgia, Tennessee, Alabama, North Carolina and South Carolina, or contact us with questions about a specific parcel.
