​Are you looking to develop a piece of land for commercial or residential use? Look no further than the land experts at First and Main RE. Our ultimate goal is to help you maximize the potential of your land and achieve a strong return on your investment.

The land development process typically involves several phases, which can vary depending on the specific project and the jurisdiction. Here are some common phases in land development:

1. ​Conceptual Planning: This phase involves identifying the overall vision and goals for the project, and determining the feasibility of the project based on factors such as zoning, environmental regulations, and market demand.
2. Site Analysis and Design: This phase involves conducting a detailed analysis of the site, including topography, soils, vegetation, and other natural features. Site design is also developed, which includes layout and circulation, grading, and stormwater management.
3. Entitlement and Permitting: This phase involves obtaining the necessary approvals and permits from local, state, and federal agencies, such as zoning variances, building permits, and environmental impact reports.
4. Construction: This phase involves the actual construction of the project, including grading, infrastructure, and building construction. This phase is also important to manage and monitor the work site safety and comply with the regulations.
5. Leasing and Marketing: This phase involves marketing the project to potential tenants or buyers and negotiating leases or sales agreements.
6. Occupancy and Closeout: This phase involves the final inspection and approval of the project by the local building department, as well as the transfer of the property to the new owner or tenant.
7. Post-development monitoring: This phase involves monitoring the development to ensure that the project is meeting the requirements and conditions of the permits, and that the project is being used and maintained as intended.​

It's important to note that the specific phases and steps may vary depending on the project and location, and that some steps may overlap or occur simultaneously.

Are you looking to develop a piece of land for commercial or residential use? Look no further than the land experts at First and Main RE. Our ultimate goal is to help you maximize the potential of your land and achieve a strong return on your investment.​

The final post of this series on land buyer due diligence focuses on physical attributes that can significantly influence property value. Please keep in mind that this is only a primer for buyers of land for sale, to assist them in identifying a property.

Soils Outside of forestry and agricultural circles, soil is perhaps the most under-appreciated and misunderstood factor in successfully growing and managing a healthy crop.. Understanding the various soil types, specifically their capacity to retain or hold water, is an important consideration when developing long-term forestry plans.

​To learn more about soils and their importance to forest health, there is no better source than the USDA Natural Resource Conservation Service. While you’re there, check out the “Soil Survey” section, which provides a process to access published soil data to create a detailed soil map of the parcel of interest.

Water:  Many buyers seeking recreational land for sale desire some type of water body. Some seek ponds, lakefront, rivers or even open water wetlands. While we often chuckle when we read “babbling brook!” in the property description, real estate agents are simply appealing to market demand. Given a choice between land with no water and land with a small brook, buyers will often gravitate to the latter when all other aspects are relatively equal.

Regardless of the water body type or size, it’s a good idea to consider the surrounding land use patterns to determine what “upstream” activities may impact water quality. Using Google Earth Maps, study the surrounding topography contributing to the water body on the parcel of interest. Ask the broker or the seller about the land use history of the parcel. If it’s a large parcel (>100 acres) consider conducting a Phase I Environmental Site Assessment (ESA), a visual site inspection conducted by a licensed environmental consulting firm to identify any prior or present evidence of hazardous contamination. Part of a Phase I ESA includes a voluntary interview with the landowner to document what they know about the past land uses of the property.

If forestry is the primary use, understand the buffer zone laws and setback distances from various water bodies for forestry activity. Consider timber retention in these areas as part of your forest management plan.

If fishing is a passion, then you will want to know the native fish populations and fishing regulations. Is it a warm water fishery hosting bass, perch and pickerel or a cold water fishery hosting trout and land-locked salmon? Some states, have historical lake and pond surveys that offer the water depth, type of fishery and stocking status. These surveys are often dated (>10 years old) but still offer useful information for avid anglers.

​Written by Patrick Hackley, a professional forester and timberland broker with Fountains Land who has served timberland owners and buyers in the northeast since 2005.

Last month, we began a series of posts on what land buyers should consider before purchasing land (see Land Buyers Checklist: Part I – Due Diligence). Remember that we call the research to ensure that a property satisfies all of the buyer’s criteria “due diligence.” Last time, we discussed due diligence on access, boundaries and deeds. Today, we’re on to the next group of considerations.

Location:  The location of the land for sale is an important consideration. The owner’s primary use, whether it’s for investment, recreation, a second home, or a blend of these uses, will dictate where the property is located.
For those seeking a recreational get-away that can be visited on the weekends, many buyers try to limit the travel time to about a half day’s drive. That way, one can sneak out of work on a Friday afternoon, drive about four hours, and be grilling steaks by dinner time. Other buyers, seeking more remote retreats, may only need to have a local airport within an hour of the property with someone local to drive them the rest of the way. Keep in mind that “remote” has many meanings and is sometimes more of a feeling than an actual geographic location.

Timberland investors who may need to visit the property once a year can acquire tracts in any part of the country or even abroad. While the actual location may not matter for timberland investments, there are three important location related attributes that timberland investors must consider: 1) a good road system for hauling forest products; 2) a variety of wood markets within the region; and 3) availability of forestry services and an established logging and trucking workforce.

State & Municipal Regulations:  Imagine that you are fortunate enough to find your piece of paradise. You have established that you have good access, you know the acreage and you have reviewed the deed. However, will your desired use be compatible with town or state regulations?

If the intention is to build a year-round dwelling, then it’s important to first confirm the municipal requirements for road frontage on a publicly-maintained road. If there is no road frontage, some towns will allow building on unmaintained roads; however, they will require the owner to sign a liability waiver if town vehicles are unable to access the dwelling in an emergency.

If the intention is primarily forest land management, then knowledge of town and/or state forestry laws is necessary. Each state has its own set of laws, some more restrictive than others, relative to harvesting limits, water quality and wildlife habitat protection. Adherence to certain forestry practices is required to qualify for discounted tax programs. Consult with a local forester to understand these laws and determine if the regulatory climate in that state will be compatible with your long-term goals before acquiring the property.

If the intention is to eventually sub-divide the property, check the deed (again) to ensure that there are no restrictions limiting subdivision. Next, review the town zoning ordinance and site plan review process to understand what is required for a subdivision proposal. In many small rural towns, there are no formal zoning ordinances, only minimal requirements for building lot size and road frontage. However, never assume this! Always contact the town directly to inquire about their zoning and planning process or any statewide regulations that the town may have adopted into their ordinances.

If you are considering energy generation, wind or solar, or communications towers, this will undoubtedly trigger a unique set of regulations. You should be prepared to hire a land-use attorney experienced in the permitting process for these projects.

Taxes:  Fortunately, landowners of ten to twenty-five acres or more in New England and New York qualify for a discounted property tax rate for maintaining some or all of their land in an undeveloped condition. These laws are often referred to as “current use” laws because the tax rate is based on its current use (agriculture, forests, pasture, wetland, etc.) rather than their potential use to support development (residential or commercial uses). A major premise of these laws acknowledges that undeveloped land provides inherent values to society (open space, clean water, wildlife habitat, and recreation) while requiring little to no municipal services. Therefore, a lower tax rate allows these landowners to maintain their land in an undeveloped condition rather than be forced to sell due to escalating taxes.

Each state administers their respective current use programs differently so contact the state revenue agency to obtain and understand the enrollment criteria as part of your due diligence.

Federal Income Tax: Timber income is subject to federal income taxes. There are a significant number of ways to reduce your tax exposure. Keeping excellent records from the very start of your due diligence process is one way. For a thorough overview in managing federal timber taxes, visit the National Timber Tax Website.
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Ben Franklin famously quipped, “Nothing can be said to be certain, except death and taxes.” Understanding your tax obligations on the local, state and federal levels prior to acquisition will go a long way in helping you manage your land investment wisely, just like old Ben.

Written by Patrick Hackley, a professional forester and timberland broker with Fountains Land who has served timberland owners and buyers in the northeast since 2005.

Owning a parcel of land is the dream of many. Whether it’s ten acres or several thousand, land ownership represents an investment in a solid, tangible asset – one that holds intrinsic value to the owner and signifies means and permanence in society.
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In order to ensure that the land for sale provides the enjoyment and utility that the buyer is seeking, it is critical to thoroughly research the property before entering negotiations to purchase. We call this due diligence – that is, ensuring the property satisfies all of the buyer’s criteria. So, what should a prospective buyer consider? The following is the first of a three-part list of key items with a brief primer to get one started on the due diligence process.

Access:  This is perhaps the most critical characteristic influencing value. The nature and extent of access dictates the type of uses the parcel can offer. Does the parcel front a publicly-maintained road with power and utilities? Does the parcel have a deeded right-of-way across an adjacent landowner? Does the condition of the road surface (e.g. gravel vs. pavement) relegate it to seasonal or year-round use? Research the access thoroughly and understand all the associated benefits and limitations to be sure you can use the parcel as you envision.

Boundaries:  Parcel boundary markings exist in many forms and, in some cases, not at all  Always inquire first if a survey exists. It doesn’t necessarily have to be registered at the county registry of deeds, but it must have the imprint of a licensed surveyor to be legitimate. If no survey exists, start with the deed description and obtain a copy of the town assessor map. However, beware of the latter source as most municipal assessor maps are meant for general location reference and not boundary identification.

When physical evidence and legal documentation is lacking or uncertain, a licensed surveyor may be necessary to locate and re-mark the boundaries. Don’t be afraid to engage a professional to help you ascertain the parcel boundaries. It will be money well spent.

Deeds:   A registered deed is the most important document to review. The seller or his/her broker can provide you with a copy. In some cases, you may need to obtain one from the town or country registry of deeds. Many registries are on-line and one can easily download copies of the deed, sometimes for a nominal fee.

The deed confirms the owner’s identity, who they purchased it from, and when. Most importantly, it provides a physical description of the property, and references any encumbrances or exclusionary rights of other parties – e.g. “excepting and reserving a 50’ right-of-way to Edna Johnson, her heirs and assigns, to access her property…” Other encumbrances may include water rights held by an adjacent landowner to a natural spring on the subject property. Likewise, there can also be mineral rights, timber rights, gravel rights or a camp right held by another person or entity. In some cases, these rights can be extinguished by negotiation with the third party.

Read the deed carefully – more than once – and understand what is for sale, where it’s located, and any encumbrances that may exist. It is strongly advised that an attorney review the deed prior to sale, often done as a contract contingency, and that they conduct a thorough title search to ensure a “clean, marketable” title. There is no substitute for sound legal review in the acquisition process.

​Written by Patrick Hackley, a professional forester and timberland broker with Fountains Land who has served timberland owners and buyers in the northeast since 2005.

Land surveys are an important but often overlooked part of real estate due diligence.  Sometimes a lender will require some type of survey or certificate from a surveyor before a title company issues a lender’s title insurance policy, but that’s not the case everywhere. Often, the survey used in a new real estate transaction is an old one conveyed by the seller. Whether you're a real estate agent, investor or a savvy buyer who's been through a closing, you've probably heard this before. While this may be an acceptable standard in the real estate and title industry in certain regions, it’s not ideal for a new homeowner and could cause major problems for the buyer in the future.

Below is excerpts from an interview between Amanda Farrell with PropLogix and Akkad Bakhsh with First Choice Surveying  to give more details on why a survey is so important to the investment experience.

1. What is the worst advice you’ve heard about land surveys? 
That a new survey is not needed if an old survey can be provided.

2. Is there any new technology in the industry changing the way you do surveys?
GPS and drone surveying are making a huge impact on the accuracy and speed of conducting a survey.

3. What is the most important thing for home buyers to know about land surveys when looking for a home? 
Always order a survey, even when the current sellers have one.  A seller could say they didn’t make any changes to the property and sign a document saying that but the problem is if a neighbor makes a change to their property.  For example, the neighbor may build a concrete slab that encroaches slightly onto your property and if somebody happens to fall on that concrete slab that is partially on your property, you are now liable to for any injuries to that person.  In my opinion, it’s always best to get a new survey that is certified to the current buyer.

4. How many hours does it usually take to conduct a standard survey?
This is a difficult question to answer because surveys require different phases and time in between each phase to get completed.  If I had to give it an hourly breakdown I would estimate 5-8 hours, spread over multiple days.

5. What was the most difficult survey you've done?
One that comes to mind recently was a commercial lot where we could not find any control points or corners. There was absolutely nothing on the property that could help us create the survey.  We worked on it a for a week and had to go back to the client and tell them we couldn’t complete the survey.  That was the only time that we have been unable to figure out a boundary on a property.    

6. What are some common misconceptions about land surveys?
Again, that a new survey is not needed when an old one is provided.  

The corners in the ground are always correct. Sometimes, those corners can be pulled up and moved.  This can be corrected, but it takes additional detective work and creative problem-solving.

The fee for a survey should be the same on all properties that are the same size. The size of the property doesn't always dictate the difficulty of completing a survey. Land, especially un-development or under-development land, isn't all the same. Finding corners in a rural parcel that might be small won't be as easy as a completing a survey in a PUD (Planned Unit Development).​

Still think you don't need a survey?
It's common in the real estate industry to suggest that the buyer use the old survey from the seller because a new survey may seem like an unnecessary cost, but this is a common misconception with potential for massive disappointment for the new owner. Even though a survey isn't required by every state or lender, the value of a survey is evident. Is saving a few hundred dollars on one of the biggest investments you will ever make really worth taking that kind of risk?