Is this land cheap for a reason?
March 25, 2012 10:25 AM Subscribe
How do I determine whether to purchase vacant land next to my house? 1/3 of an acre in western Oregon, $15,000, but no utilities.
posted by Happydaz to home & garden (18 answers total) 1 user marked this as a favorite
So my wife and I are in the market for a piece of property, simply because we are adjoining property owners and got a nice letter from the seller that piqued our interest.
The price on this residential zoned property is very low (for Oregon standards and their crazy zoning), mostly because of the lack of utilities. I just learned it will cost $20k to bring in sewer, another $20k for water, and I don't have bids back yet for electric or gas. Because I own the adjoining property already, I may be able to get this work done for significantly cheaper, but that's a bit unclear.
If we purchase the land, the intent would be to put a nice garden on it and use it undeveloped until we paid it off, and then maybe use the land as a downpayment for a construction loan and put a single family house on it. I liked this idea better when I was thinking of utilities as a $10 to $20k improvement, not a $40k + one.
What else should we be considering in whether this land is a good price? If we just added it on to our current property, it would double the size, although it would be a weird "L" shape because we are on a main road and this property is accessible only through an alley easement. And while the idea of having more land just to have it is nice, we got a lot of space already, and I'm not sure whether the additional size would really translate to better real estate values if we decided to sell the whole package sometime in the future.