How To Buy Land In Other States | askBAMLand

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Are you considering buying land in another state? I’ll guide you through the process to ensure you buy the right way.

The process of buying land in other states can vary depending on the state and the type of land you're looking to buy, but there are general steps to follow. First, you'll research the land you want, find a local real estate agent, secure financing, conduct due diligence, and then close the deal.

Whether you're looking for a vacation property, a place to retire, or an investment opportunity, purchasing land in another state can be a smart move. However, the process can be daunting, especially if you're unfamiliar with the state's laws and regulations. Besides my experience, I’ve done extensive research on valuable tips and insights you need to avoid common pitfalls when buying land in another state. Read on to learn more.

Key Takeaways

  • As a property investor or owner, consider the long-term potential for the property.
  • Research local zoning laws and regulations before investing in land.
  • Get a thorough property inspection before making a purchase.
  • Work with a reputable real estate attorney to ensure a smooth transaction.
  • Budget for additional costs beyond the purchase price.

Table of Contents

How To Buy Land In Other States

Purchasing land in another state can be challenging, but it can be a smooth and successful process with the right approach. You want to look at property prices, trends, and local real estate agents. This will help you better understand what you can expect to pay for the land you want.

Here are some tips to guide you through the process of buying land in another state:

1. Research the Local Real Estate Market

Start by researching the out-of-state real estate market to understand local market conditions better before conducting any land purchase.

Before investing in real estate property, look at the median home values, property taxes, and the number of homes for sale. Besides consulting a real estate professional, you can also consult with a local property manager or local property owners.

2. Find a Local Real Estate Agent

It's important to find a local real estate agent familiar with where you want to buy land. Real estate agents will provide you with valuable insights into the local market and help you find properties that meet your criteria. I recommend looking for an agent with experience working with out-of-state buyers.

3. Research the Property

Once you've found a property you're interested in, research it thoroughly. Look at the property's history, including any past sales, liens, or zoning restrictions. You can also hire a professional inspector to assess the property's condition.

4. Work with a Property Management Company

If you're not planning on living on the land you're buying, consider working with a property management company to help manage your rental property.

They can help you manage the property and find quality tenants if you're planning on using it as a rental property.

5. Understand Property Taxes

Ensure you understand the property taxes in the state you're buying land in. Property taxes can vary widely from state to state, so it's important to know what you're getting into before you make a purchase.

6. Consider the Market Conditions

Look at factors such as job growth, population growth, and the overall economic climate. These factors can impact the value of your investment over time.

7. Find a Lender

If you're financing the purchase, you'll need to find a lender who is licensed to do business in the state where you're buying land. Research lenders and compare their rates and terms to find the best deal.

Understanding the Costs of Buying Land Out-of-State

Buying land out-of-state can be a smart investment, but it's important to understand the costs involved. Here are some of the things you'll need to consider when buying land in other states:

Purchase Price

The purchase price of the land is the most obvious cost to consider. This is the amount you'll need to pay to own the land. Ensure you understand the market value of the land you're interested in, and be prepared to negotiate if necessary.

Down Payment

Most lenders require a down payment when you're buying land. You'll need to pay a percentage of the purchase price upfront. The amount of the down payment will depend on the lender and your financial situation.

Closing Costs

Closing costs are the fees associated with the purchase of the land. These can include things like title insurance, appraisal fees, and attorney fees. Make sure you understand what closing costs you'll be responsible for and budget accordingly.

Property Taxes

Owning land comes with the responsibility of paying property taxes. The amount of taxes you'll need to pay will depend on the land's location and value.

Earnest Money Deposit

An earnest money deposit is a sum of money you'll need to put down when you make an offer on the land. This deposit shows the seller that you're serious about buying the land. The amount of the deposit will depend on the value of the land and the seller's requirements.


Other fees may be associated with the purchase of the land, such as survey fees, zoning fees, and inspection fees. Ensure you understand what fees you'll need to pay and budget accordingly. If unsure of any details, ensure you consult a real estate broker or expert.

Navigating the Legal Aspects of Buying Land Out-of-State

Buying land in another state can be a complex process involving several legalities. It's important to be aware of these legal aspects to ensure that you make a sound investment and avoid potential disputes.

Here are some key legal considerations to keep in mind when buying land out-of-state:

Consult with a Real Estate Attorney

One of the most important steps you can take when buying land out-of-state is to consult with a real estate attorney.

They can help you navigate the legal complexities of the transaction and ensure that all necessary legal documents are in order.

They can also help you understand the laws and regulations that apply to the property you are interested in purchasing.


Contingencies are clauses in a real estate contract that specify certain conditions that must be met before the sale can be completed.

These can include things like obtaining financing, conducting a satisfactory inspection, or resolving any legal disputes related to the property. Including contingencies in your contract can help protect you from potential legal issues down the line.

Inspection Report

Before finalizing the purchase of any property, it's important to have it inspected by a professional. A land or home inspection will help you identify any potential issues with the property, such as water damage or other defects.

Title Company

A title company can help ensure that the title to the property you are interested in purchasing is clear and free of any liens or other legal issues. They can also help you obtain title insurance, which can protect you from any legal disputes that may arise in the future.


These are legal claims that can be filed by various parties such as contractors and creditors, against a property. It's important to ensure that the property you are interested in purchasing is free of any liens before finalizing the sale.

A title company can help you identify any liens and ensure that they are resolved before the sale is completed.

Choosing the Right Property

When you're looking to buy land in another state, there are several factors you need to consider to ensure you choose the right property for your needs. Here are some things to keep in mind:

Location and Neighborhood

The first thing you need to consider is the location and neighborhood. Ensure the area is safe and has the amenities you need.

Research the area's crime rate, schools, hospitals, and public transportation. It's also important to consider the distance from your current location and how often you plan on visiting the property.

Type of Land

The type of land you choose will depend on your intended use. If you plan on building a home, you need to find a lot zoned for residential use, particularly raw land, rather than undeveloped land.

If you're looking for recreational land, ensure it's suitable for the activities you have in mind. If you're buying vacant land, you need to consider the soil type and whether it's suitable for your intended use.

Permits and Zoning Laws

Before you buy land, you need to research the permits and zoning laws in the area. You need to know what permits are required for your intended use and whether the property is zoned for that use. If you're planning on building a home, you need to know the setbacks and easements required in the area.

Survey and Wetlands

Having the land surveyed is important to ensure you know what you're buying. The survey will show you your property lines and determine the boundaries of the property and whether there are any encroachments.

During your land search, you also need to consider whether there are any wetlands on the property. Wetlands are protected by federal law, and you might not be able to build on them.

Closing the Deal

Once you have found the perfect plot of land, it's time to close the deal and start planning your move. Here are some important steps to consider when closing the deal:

Hire a real estate attorney Closing on a land purchase can be complicated, so a real estate attorney can help guide you through the process and ensure that all legal requirements are met.
Finalize the contract Ensure you have finalized the contract and that all terms are agreed upon by both parties. This includes the purchase price, closing date, and any contingencies.
Ensure finances are in order If you use a mortgage lender to finance your land purchase, ensure all necessary documents are in order and that you have secured final approval.
Also, understand the mortgage type and the monthly mortgage payment so that you’re well-prepared.
Homeowners Insurance Before closing, you’ll need to purchase homeowners insurance. Shop around for the best rates and coverage.
Closing day On closing day, you’ll sign all necessary paperwork and pay any closing costs.


Brittany Melling

Brittany Melling

Brittany has been in the land business since 2020 when the world was starting to shut down. Since then, we’ve sold to dozens of people from ATV weekend warriors to camping enthusiasts to retired truck drivers. Our inventory spans mostly in the western United States. We’ve been trained by experience, land acquisition courses, and hundreds of hours meeting with county assessors and clerks, zoning officials, realtors, and land investors. We’ve answered hundreds of questions from people regarding the buying and use of land.

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