Expert: liznarr - 5/3/2009

Question
We own our home and am contemplating buying land that faces a resaca.  It is not located in a desirable neighborhood, but it has the most beautiful scenery with all the animals that appear ever so often in this resaca. The property has a utility easement and that has been a concern for us as it will not belong to us.  Do you think it is still a good investment regardless of the location and the easement?  It is a lot 50x150 and 21x150 and the end curves into 43 instead of the 21.  These are two adjacent lots going for $25,000.  Everybody advises us that it is not a good neighborhood and not to buy.  We have been to this site at least 10 times and we just love what we see.  It is so relaxing and noiselss.  Can you please give me your professional opinion asap as we have to let the realtor know by tomorrow.

Answer
Hi Esther,

When you say the land you want to purchase is not located in a “desirable” neighborhood, I am not sure if you mean the aesthetics of the land itself are not desirable, the proximity of the land to commercial and/or industrial property, or possibly a safety concern because of crime, etc., in the area.  If the area is high-crime, I would not advise purchasing; you would not want to put yourself or any family member at risk knowing this up front.

If the utility easement is a power easement, and the power lines are not/will not be high-tension lines, all I can say is that for me personally, this would not be a problem.  You just cannot build anything permanent over the easement area, but neither can anyone else – which is good from your “view” standpoint.

Without having seen the property or knowing more about the area, all I can say is this:  If you just cannot live without this property; can afford the $25,000 price tag without having to cut back on any necessities or withdraw from your emergency savings; and you are prepared to lose all or a part of the investment in spite of the unheeded warnings of friends (if, in fact, they are right) in the event you wanted to sell the property later -- and you could not resell the property later and at least break even -- you should use your own best judgment as to whether or not to purchase.

In view of the fact, however, that apparently many other persons have warned you NOT to purchase, I would investigate this further and find out ALL the reasons why these people are advising you NOT to purchase.  Better safe than sorry.  Although you said you ‘just love what you see,’ it’s what you may NOT have seen yet that you might not love later.

If there are no other offers on the table and the Realtor is insisting on an answer tomorrow, to me, there is no decision to make … tomorrow.  Never let anyone pressure you to make a purchase, and NEVER make hasty buying decisions without having fully investigated what you are purchasing.  Always make sure that what you THINK you are purchasing is actually what you WILL BE purchasing.  There’s an old saying that I live by:  Be careful of what you ask for; you just might receive it.

I don’t know that I have been much help, but I hope I offered some things you might not have previously considered.

Good luck to you, and feel free to write again if you have additional questions.

Regards,
Elizabeth