There is something about the purchase of land that appeals to Americans. Maybe you want to build your own home or have some other use in mind for new land. Things that never come into play when thinking about a home purchase – like public access, starting up utilities, easements, or land-use restrictions – all become important when purchasing land.

Regardless, there is a right way to buy vacant lots for sale. Here are some tips.

Be familiar with the plan and zone

After deciding what you want and narrowing your search, spend at least one day researching your choices at the planning and zoning department.

Take a look at the county's land-use plan for the next few years. Certain areas will be designated for business use while others will be for residential purposes. Be aware of different densities, agriculture, and public-use issues like parks and schools. Look into the space around attractive vacant lots and assess whether a negative feature, like a car dealership or jailhouse, could become your new neighbor.

Don’t forget to check out the traffic situation and inquire about any road improvements that might be planned.

Once you've identified specific vacant lots for sale, determine how the property is zoned. Why? Because zoning will tell you whether you can build on the site. After you’ve determined that, find out whether the vacant lot is in an established subdivision or on acreage that is unrecorded.

If your vacant lot is located in a subdivision, ask to see the plat and subdivision restrictions. It doesn’t matter whether you're buying in the city or in the country. You want to look at both because modern plats have details that might be hidden within the subdivision restrictions and might be hard to spot.

Identify any and all boundaries

You want to research subdivision restrictions because you need to know how much control you have over how your property is used. If the site isn’t located in a subdivision, these questions can be answered by reading the deed restrictions or covenants. You want to know what kinds of restrictions will affect you, such as dictating the kinds of pets you’re allowed to own or whether you can park a work truck in the driveway.

Get to know the homeowner's association, if there is one, and find out what kind of fees they charge. Is membership mandatory? If it is and you fall behind on your payments, the association can put a lien on your property and eventually foreclose.

Utilities and access

These are two very important reasons to look at the plat and thoroughly research your options when looking at vacant lots for sale. Determine if the site has municipal water and sewage. If not, you will have to drill a well and install a septic system which is good to know ahead of time. Such work often costs thousands of dollars in construction costs so if that’s not something you can afford, you should probably avoid buying vacant lots where such work would be required.

What about the financing?

You will find that financing the purchase of vacant lots for sale isn’t like securing a mortgage for your home. The market for home mortgages is a competitive one. Comparatively, financing for vacant lots is relatively easy. The seller usually provides the financing ideas. You will still be required to produce a 20% down payment and the seller will hold a note for the balance. The interest rate and terms of the loan are negotiable, which is good news all the way around.

If the purchase price isn't too high, you might also consider a home equity loan. Taking out one on your current residence could afford you a nice tax deduction.

Major banks do not get too involved in this market, so your best bet is to find a good community bank. Your real estate agents or the title insurance companies in your area should know which banks will finance loans for vacant land.

You'll have a better chance borrowing money if there are other properties in the area with homes already built. This is also true if you’re planning to build a home as opposed to holding onto the land as an investment. The bank is more likely to do business with you if they think you’ll be back for a construction loan.

Know all the issues

Factors that impact the terms of any loan or financing option will probably include the location and size of the vacant lot, the zoning, and the planned use of the property. Any bank or lending institution should charge the same interest rate and points whether you’ll be using the money for construction or for purchasing raw land.

The biggest mistake that buyers make when purchasing vacant lots is to buy without considering the costs of building after the land is bought. Don’t forget – you will need some shelter to live in after the vacant lot is purchased.