Seven Must Ask Questions for Buying Land in NC

Top Seven Must-Ask Questions For North Carolina Land Buyers

Today’s land buyers may be diverse in their reasons for buying land, but both buyers and sellers of land and farms in North Carolina need to be informed.

1. Access

We’ve all seen them: the bucolic tree-lined, winding gravel roads overlooking open pastures pictured on fiction book covers. But getting to a property may not be as straightforward as it looks.

 The first question to always consider is exactly how are owners allowed to access that road? Ownership of a property may not necessarily come with municipality-maintained roads, so confirm beforehand how to legally access the property. Easements, road maintenance agreements, and road frontage are related to ingress and egress, as well as temporary access conditions, cart-path requirements, and deed restrictions.

2. Current Use

How a property is currently used in North Carolina can significantly affect tax values, and can significantly decrease yearly tax bills due to a Present Use Value program. Over 20 acres of land can be classified as Forestry Use, 10 acres for agriculture (defined as crops, plants, or animals), five acres or more for aquaculture, and five acres or more for flowers/horticulture (defined as fruits, vegetables, or nursery/floral products). Any residence on a property will reduce the size of present use status acreage; a county usually carves one acre around the residence out of its present use valuation and assigns highest market value to it with the residence.  If a property is currently producing income, how much income? How is it broken down over the last three years? This information is requested using a North Carolina AV-5 form which is filled in by current owners for benefit of new buyers to keep a property within Present Use Value.

3. Features Affecting Value

Intrinsic to land is its diversity, and many factors can negatively and positively affect value. Where a property is sited remains the most weighty one (think: location, location, location!). Municipal and utility service availability, topography, flood plain, water features, amount and direction of sunlight, and soil conditions can also affect property. Other non-livable infrastructure can also affect value: is the property fenced? How? What about water for irrigation and for animals being readily available via pond, stream or distributed from a well (or wells)? What about enhanced paths and internal roads? These are things that add value. If topography is very hilly, very flat, or somewhat rolling, will those intrinsic features work toward whatever the goals are for the property?

4. Neighboring Property Owners

Before buying property, it is important to understand who owns – or what entities own – properties that border the subject acreage. Consult tax records via local county GIS

A key element to searching for land in North Carolina is knowing what has sold in the surrounding area that could be considered comparable in size, location, proximity to utilities, etc. This comparative sales analysis can easily be provided by a qualified real estate broker experienced in land sales and often includes data both from tax authorities as well as from broker-paid membership in multiple-listing services (MLSs), privately shared databases of properties within a given area.

5. Current Property Ownership

Property can be owned several ways. Many times it is owned by multiple family members together, sometimes owned by family or lifetime trust, sometimes held by an LLC. In North Carolina, it is imperative to confirm exactly who owns a property and how – as determined by a licensed attorney’s title investigation. Also of note: “it takes one to buy, but two to sell” – where in NC a spouse must agree to the sale, even if legally separated for years. Another title issue is often fencing encroachment. It is best practice to obtain a new survey for a buyer, even if one has been recorded in the past. Professional advice is worth its cost to confirm that title is clear when it is conveyed.

6. Restrictions

Many forms of restriction can exist which may affect how buyers can use a property. Common forms of restriction include deed restrictions, zoning restrictions, watershed rule compliance, conservation easement requirements, and even historical / architectural zone overlays. Deed restrictions often spell out “no mobile homes,” “no farm animals,” or “no firearms discharged” and similar statements. The best way to determine what can and cannot be done within current zoning is to call the controlling municipality’s planning office. Watersheds are precious and protect wildlife, stream health, and control flooding, so many regulations surround any kind of development within protected areas. Conservation easements are often designated acreage for the carbon sequestration rights that can be “sold” for further tax advantages but require that designated area to remain untouched. That can be good or bad depending on land purpose. Finally, many farms provide historic structures which may be regulated by special zone overlays specifically added to current zones to further control use, design, or expansion. Consultation with professional real estate brokers, real estate attorneys, and local authorities is wise.

7. Property Values Over Time

Appraising a farm in North Carolina is based on these and other factors, and it is a best practice to hire a licensed land appraiser to confirm a property’s current market value. Also, consider the desired use of the property: does the land or farm check most of the important boxes for purchase? What non-tangible benefits does it bring? Further, think about the legacy you want to create and share. Finally, land is a finite commodity - as the saying goes, “Buy land – they don’t make any more of it.”  - EBR