4 Important Factors to Consider Before You Buy Land in Ohio Friday, May 18, 2018
Are you looking to buy land in Ohio? Your first priority is to get organized! When buying land for commercial use, especially vacant lots and raw land for sale, it may seem as though there would be less to worry about since you do not need to concern yourself with things such as structures and tenants. However, buying land is a very complex decision, which requires a great deal of thought.
First things first… Determine your basic objectives:
- What do you plan to build on the land?
- Do you have a commercial real estate developer in mind?
- Which codes will you have to obey?
- What costs will you face after the initial land purchase?
- Will you use the property as a long-term investment?
- Do you plan to handle the property search, as well as all matters related to the transaction by yourself? Or are you considering hiring a land broker to manage everything for you?
Are you starting to realize the many decisions in front of you? Well that is only the beginning. Below are the top four items that should factor into your decision to buy land in Ohio.
While there are a number of elements to consider when you buy land in Ohio, the location should be your top priority. Surely, you’ve heard it before: “Location. Location. Location.” When it comes to Ohio commercial real estate, this may be the most important decision you will be faced with – and the most basic.
- Decide the general location as to where you will purchase land.
- Analyze the business climate to find a business-friendly environment (consider the average revenue of local businesses, the number of businesses with paid employees, and so on).
- Research the local economic health of the areas you’re considering (look at the median income and housing costs, in addition to unemployment rates).
- Explore the community and see what is available.
- Consider talking to a commercial real estate broker about your options and the benefits of your desired location.
Pro Tip: There are 25 Ohio companies on the current Fortune 500 list. Nine of those companies are based in Cincinnati, and five are in Central Ohio. Based on this list, these two areas seem to have strong and established environments for businesses.
Keep in mind, though, it isn’t only about the area; it’s also about easy access. Local highways, exit ramps, local streets, and public transportation shouldn’t be an afterthought.
Be prepared to spend much more money than just the purchase price of the property. This should factor into the kind of initial investment you make when you buy land in Ohio. Get organized and make a list of the kinds of costs associated with owning a piece of land, such as::
- Legal expenses
- Building costs
- Service fees
3.) Zoning Laws
Once you have narrowed down your search to the one location in which you want to purchase land, and outlined the costs involved, what can you do with that land? In order to truly know what you have, you must become knowledgeable of the local zoning restrictions on that parcel of land for sale in Ohio. Zoning laws in a state or town govern what you can and cannot do with your new property. Certain areas are zoned for residences and certain areas are zoned for commercial buildings. For obvious reasons, you should figure this out before you buy land in Ohio.
4.) Environmental Concerns
Before you invest in land for sale in Ohio, it’s important that you assess the quality of that piece of land with an Environmental Site Assessment (ESA). There are four phases of an ESA; though, the Phase 1 ESA results in a report that will identify the potential for contamination of a site from hazardous or toxic materials. It’s an effective tool to help you identify existing or potential environmental contamination liabilities on the raw land you’re about to buy. The Phase 1 ESA assists the land buyer by bringing to light any liability they might end up inheriting by purchasing that land. It also benefits the person wanting to sell land by informing them of any possible environmental issues they need to resolve before listing their property; thus, making the selling process quicker.
Need Professional Guidance on Your Quest to Buy Land in Ohio?
Although this blog post lists the top four areas you should focus on, there are many other factors you should also consider – from permits to utilities, and all the way to choosing a land broker, as well as the best commercial real estate developer available. Are you ready to buy commercial real estate alone? Fortunately, in Central Ohio, you have The Robert Weiler Company. Call 614-221-4286 and let our CRE firm, founded in 1938 on honesty and integrity, guide you on your quest to buy land in Ohio.