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Owning land in Louisiana land can be a rewarding and profitable experience if you know the process. And if you don’t, keep reading!
In this article, we’re going to tell you everything you need to know about purchasing a piece of land in Louisiana.
In this article, we’ll show you step by step how to buy a plot of land in Louisiana.
My family owns several plots of real estate around New Orleans and Baton Rouge and because I’m constantly looking for real estate, I’ve also researched the process thoroughly.
First things first, you need to get pre-approved for a loan.
Getting pre-approved for a loan to buy land is exactly like getting pre-approved for a mortgage. The reason why this initial step is so important is because Realtors will have an incentive to work with and for you.
Once you’re pre-qualified for a loan, the real estate professionals you’re dealing with will take you more seriously because they want your business.
If you apply and are not approved, take these steps to improve your credit fast.
It’s time to begin your search for affordable land for sale.
In a large metropolitan area like New Orleans, parcels of land sell at a premium. If you want several acres, you’ll have to expand your search to cities around Orleans Parish.
The price of an acre of land in Louisiana depends on where it’s located and whether it is improved or unimproved.
Last year, the average price per acre in Louisiana averaged about $3,100 per acre. For pastureland, you can expect to pay around $1,400 per acre.
If you’re looking for farmland or just some acreage, if you don’t know a Realtor, then you can begin your search online.Some websites you can look for parcels of land on are:
Once you’ve found a piece of land you like, familiarize yourself with the local zoning laws. Some areas won’t let you build wooden structures. Other areas won’t let you build with stone. Others won’t allow livestock. Research what’s allowed where you want to live. The typical zoning regulations govern such things as:
In addition to knowing what type of structures are allowed to be built, you’ll need to know land use rules as well. Here are some common land-use zones that could apply to the area you’re interested in:
You may be saying to yourself, “How do I find out about zoning laws?” The best place to start is with the locality’s department of city planning, or similar office. They’ll tell you all you need to know about the zoning laws in that area.
Once you’ve done all your zoning research, it’s time to whittle down your list of land parcels you like and choose one.
Some things you may want to consider are:
All of these things may increase or decrease the value of the land depending on your intentions for it.
In any event, once you’ve made your decision to buy the land, it’s time to put it in writing.
To make a formal offer on a piece of land you’ll need a real estate agent’s Bid Offer form. You can find samples of a Bid Offer form online.
When making an offer, you don’t want to go too high in price. Let your offer be based not on the property’s asking price, but on the amount you’ve been pre-approved for.
If you offer over the asking price, you’ll have to go back to your lender to make sure you can get financing to cover it.
You’ll also want to know if the appraisal of the land justifies the asking price.
If you make an offer too low, it may not attract the seller because they may get higher offers from others looking to buy the property.
Bottom line: Your offer will have to be higher than the others if you want the land.
Let’s say the seller accepts your offer. What now?
Once the offer is accepted, the buyer and seller typically sign a Land Sale Contract / Purchase Agreement.
This is a legal document that solidifies the intentions of both parties to make a real estate transaction.
Here are some terms typically found in a Land Sale Contract / Purchase Agreement:
Typically, the buyer’s agent will have the purchase agreement written up by a practicing real estate attorney.
The Land Sale and Purchase Agreement becomes binding when all signatures have been obtained.
Unlike a home closing, when you’re buying land you don’t have to worry about such things as an inspection and making some demands for last-minute repairs and replacements.
As a buyer, you will typically be expected to provide for anywhere between 2% to 5% of the closing costs. However, depending on other concessions you make, it’s possible that you may not pay any money at all at closing.
One thing you don’t want to skip is a soil test. A soil test also indicates which elements are missing from your soil and how much to add them if you plan on growing fruits, vegetables and other crops.
A soil test will also tell you:
You can buy a soil kit from various retailers such as Lowes and Home Depot. You can also order a soil test kit online. Here’s a comprehensive one that I like:
Once you sign all the appropriate documents at closing, the land will be yours! Some real estate lawyers may break out a bottle of Champagne to celebrate, but that’s optional:)
Are in interested in buying land in Louisiana? The Pelican State has a lot to offer for land owners who want nutrient-rich land that is naturally moisturized by the swampy wetlands along the state’s coastal region.
Buying a piece of land is a great investment and something that can stay in your family for generations. If you do it right — following all the steps from zoning laws and getting a soil test, etc. — it can be a smooth process.
Because of the many parts involved in buying land, it’s highly advisable that you use the services of a professional real estate agent. A Realtor can walk you through the land-buying process more easily. Also, many of them have the professionals you need already in their network.
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