How to Buy Land: The Complete 2026 Guide

Buying land sounds simple.

Find a piece of dirt. Pay for it. Done.

Right?

Not quite.

The truth is:

Buying land is completely different from buying a house.

Different financing. Different inspections. Different risks.

And if you don't know what you're doing?

You'll make expensive mistakes.

I've seen buyers lose $50,000 on land they couldn't build on.

Others got stuck with landlocked parcels.

Some paid double market value.

Don't be that person.

This guide will show you exactly how to buy land in 2026.

Step by step.

No fluff.

Let's dive in.

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Why Buy Land in 2026? {#why-buy-land-in-2026}

Here's the reality:

Land prices keep climbing.

Average farmland hit $4,170 per acre in 2024.

That's up 7% from last year.

Residential lots in growing areas?

$50,000+ per acre is common.

But there's good news:

Rural vacant land is still affordable.

You can find parcels for $1,000-$5,000 per acre in the right states.

And here's the kicker:

They're not making more land.

Supply is fixed.

Demand keeps growing.

Whether you want to:

• Build your dream home
• Start a homestead
• Hold for investment
• Camp and recreate

Now is the time to buy.

Here's how to do it right.

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Step 1: Define Your Purpose {#step-1-define-your-purpose}

First question:

Why do you want land?

Your answer determines everything else.

Be specific.

"I want land" isn't a plan.

"I want 5+ acres in North Carolina with well access and no HOA" is a plan.

Pro Tip: Create a "must-have" list and a "nice-to-have" list. When you find land, check it against both. This prevents emotional buying.

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Step 2: Set Your Budget and Get Pre-Approved {#step-2-set-your-budget-and-get-pre-approved}

Here's what most buyers miss:

Land costs more than the purchase price.

Way more.

You need to budget for:

See the pattern?

A $50,000 lot can cost $70,000+ by closing.

And $150,000+ if you need to develop it.

Getting Pre-Approved

If you're financing:

Get pre-approved BEFORE you search.

Why?

1. You'll know your real budget
2. Sellers take you seriously
3. You can close faster
4. You won't waste time on unaffordable land

Start with local banks and credit unions.

They're more likely to do land loans than big national banks.

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Step 3: Understand Your Financing Options {#step-3-understand-your-financing-options}

This is where land buying gets tricky.

Most lenders won't touch vacant land.

It's riskier than houses.

No structure to foreclose on.

Harder to sell if you default.

That's why land loans require:

• Higher down payments (20-50%)
• Higher interest rates (7-12%)
• Shorter terms (10-15 years)

But you have options:

Owner Financing: The Secret Weapon

Here's something most buyers don't know:

Owner financing is HUGE in land sales.

Up to 30% of vacant land transactions use it.

How it works:

1. The seller acts as the bank
2. You make monthly payments directly to them
3. They hold the deed until it's paid off

Benefits for you:

• Lower down payments (sometimes 10%)
• No bank approval needed
• No credit checks (often)
• Faster closing
• Flexible terms

At Landydandy, we offer owner financing on most properties.

Starting at $220/month.

No credit checks. No bank hassle.

Pro Tip: Always ask if the seller offers financing. Even if not advertised, many are open to it. It saves them realtor fees and capital gains taxes.

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Step 4: Find the Right Land {#step-4-find-the-right-land}

Now the fun part:

Finding your land.

Here's where to look:

Online Platforms

• Landydandy.com – Owner-financed properties with no credit checks
• Land.com – Largest land marketplace
• LandWatch – Good search filters
• Zillow – Some land listings
• Acres.com – Good for agricultural land

Local Sources

• County tax assessor websites (find owners)
• Local newspapers (classified ads)
• Real estate agents (land specialists)
• Driving around (For Sale signs)
• Networking with farmers/ranchers

Off-Market Deals

• County delinquent tax lists
• Probate filings
• Direct mail to landowners
• Auction websites (GSA, county auctions)

Best states for affordable land in 2026:

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Step 5: Conduct Due Diligence {#step-5-conduct-due-diligence}

This is where deals are made or broken.

Due diligence = investigating the property before you buy.

Skip this step?

You'll regret it.

Here's what to check:

Legal Access

Can you physically get to the property?

Many parcels are landlocked.

No road access = worthless land.

You need:

• Road frontage on a public road, OR
• A recorded easement across neighboring property

Don't assume. Verify.

Zoning and Land Use

What can you actually DO on this land?

Zoning determines:

• What you can build
• How you can use it
• Minimum lot sizes
• Setback requirements

Check with the county planning department.

Get it in writing.

Utilities

Are utilities available?

Call utility companies directly.

Ask for written confirmation of service availability.

Soil and Topography

For building, you need good soil.

Perc test (percolation test) determines if septic will work.

No passing perc test = no septic = can't build (usually).

Also check:

• Flood zone status (FEMA maps)
• Wetlands presence
• Slope/grade of land
• Environmental hazards

Title Search

Is the title clear?

A title search reveals:

• True ownership
• Liens or judgments
• Easements
• Boundary issues
• Back taxes owed

Always get title insurance.

It's cheap protection against massive problems.

Pro Tip: Visit the property at least twice. Once during dry weather, once after rain. Drainage issues only show up when it's wet.

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Step 6: Make an Offer {#step-6-make-an-offer}

Found your land?

Time to make an offer.

How to Determine Fair Value

Compare recent sales of similar parcels.

Check:

• Same county
• Similar acreage
• Similar features (access, utilities, terrain)
• Sold within last 12 months

Resources:

• County assessor records
• Land.com sold listings
• Ask local land agents

Writing the Offer

Your offer should include:

1. Purchase price
2. Earnest money deposit (usually 1-5%)
3. Contingencies:
   • Financing approval
   • Satisfactory survey
   • Clear title
   • Passing soil/perc tests
   • Inspection period (14-30 days)
4. Closing timeline (30-60 days typical)
5. Who pays which costs

Warning: Never make an offer without contingencies on vacant land. You need escape hatches if problems arise during due diligence.

Negotiation Tips

• Start 10-20% below asking (if fair market)
• Point to comparable sales
• Identify property flaws
• Be willing to walk away
• Build rapport with the seller

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Step 7: Complete Title Search and Survey {#step-7-complete-title-search-and-survey}

Once your offer is accepted:

Two critical steps remain.

Title Search and Insurance

The title company will:

1. Search public records
2. Identify any liens or encumbrances
3. Verify the seller owns the property
4. Prepare the deed transfer
5. Issue title insurance

Title insurance costs 0.5-1% of purchase price.

Worth every penny.

It protects you if:

• Someone else claims ownership
• Unknown liens surface later
• Boundary errors exist
• Easements weren't disclosed

Land Survey

Get a survey.

Period.

A survey shows:

• Exact property boundaries
• Corner markers (pins)
• Easements
• Encroachments
• Total acreage

Cost: $300-$800 for basic boundary survey.

More for detailed ALTA survey ($1,500-$3,000).

Why it matters:

I've seen neighbors' fences 50 feet onto someone else's property.

Without a survey, you'd never know.

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Step 8: Close the Deal {#step-8-close-the-deal}

Closing day.

Almost there.

What to Expect

You'll meet at the title company or attorney's office.

Bring:

• Government-issued ID
• Funds for closing (cashier's check or wire)
• Any required documentation

You'll sign:

• Deed – Transfers ownership to you
• Settlement statement – Lists all costs
• Loan documents (if financing)
• Title insurance forms

Closing Costs Breakdown

Total closing costs: 2-5% of purchase price.

After Closing

Congratulations!

You own land.

Now:

1. Record the deed (title company usually does this)
2. Get property insurance (vacant land policy)
3. Pay property taxes (set calendar reminders)
4. Mark your boundaries (post no trespassing signs)
5. Plan your next steps (develop, hold, enjoy)

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Common Mistakes to Avoid {#common-mistakes-to-avoid}

I've seen these kill deals.

And cost buyers thousands.

Don't make them.

1. Skipping Due Diligence

"It looks fine from the road."

Famous last words.

That "perfect" parcel might have:

• No legal access
• Environmental contamination
• Flooding issues
• Zoning that blocks your plans

Always investigate.

2. Ignoring Access Issues

Landlocked land is nearly worthless.

Without legal access, you can't:

• Drive to your property
• Get permits to build
• Sell it later

Verify road access OR recorded easement.

3. Not Checking Zoning

You want to build a cabin.

The county says: "This is agricultural. No residential."

Your dream dies.

Check zoning FIRST.

4. Underestimating Development Costs

The land costs $20,000.

Then you need:

• Well: $12,000
• Septic: $15,000
• Power: $25,000
• Driveway: $8,000

Suddenly it's a $80,000 project.

Budget for everything.

5. Buying Based on Photos Only

Pictures lie.

That "beautiful meadow" might be:

• A swamp
• Steep and unbuildable
• Next to a landfill
• 2 hours from anywhere

Visit in person.

6. Overleveraging

Just because you're approved for $200,000 doesn't mean you should spend it.

Land doesn't produce income (usually).

You still need to make payments.

Buy within your comfort zone.

7. Not Getting Professional Help

Land transactions are complex.

A good land agent or real estate attorney can:

• Find better deals
• Spot problems
• Negotiate effectively
• Protect your interests

Spend the money on expertise.

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Frequently Asked Questions {#frequently-asked-questions}

How much does it cost to buy land?

Land prices vary wildly based on location, size, and features. In 2026, expect:

• Rural raw land: $1,000-$5,000 per acre
• Suburban buildable lots: $20,000-$100,000+
• Prime locations: $50,000-$500,000+ per acre

Plus 2-5% in closing costs.

Can I buy land with no money down?

Rarely with traditional financing. Most land loans require 20-50% down.

However, owner financing sometimes offers low or no down payment options. Check our available properties for financing details.

Is buying land a good investment?

Land has historically appreciated 5-8% annually. It's:

• Pros: Tangible asset, low maintenance, hedge against inflation
• Cons: No cash flow, property taxes, illiquid

Best for long-term holders, not quick flips.

Do I need a realtor to buy land?

No, but it helps. Land specialists know:

• Local market values
• Zoning issues
• Development potential
• Negotiation tactics

Most are paid by the seller, not you.

What's the difference between raw land and improved land?

Raw land: No utilities, no structures, undeveloped. Cheaper but requires investment to use.

Improved land: Has some utilities (power, water) or site improvements (cleared, graded). More expensive but ready to use faster.

How long does it take to buy land?

With cash: 2-4 weeks With financing: 30-60 days With owner financing: 1-2 weeks (often)

Complex deals with issues can take longer.

What should I check before buying land?

Critical checks:

1. Legal access (road or easement)
2. Zoning and permitted uses
3. Utility availability
4. Soil quality and drainage
5. Flood zone status
6. Title clarity
7. Property boundaries (survey)
8. Environmental issues
9. Property taxes
10. HOA or deed restrictions

Can I build whatever I want on my land?

No. Building is regulated by:

• Zoning laws
• Building codes
• Permit requirements
• HOA restrictions (if applicable)
• Environmental regulations

Some counties are more permissive than others. Research before buying.

What's the best state to buy cheap land?

In 2026, affordable land states include:

• New Mexico
• Arizona
• Nevada
• Texas
• Arkansas
• Tennessee

Prices under $2,000/acre are still possible in these states.

How do I finance vacant land?

Options include:

1. Cash – Best terms, fastest closing
2. Bank land loan – 20-50% down, 7-11% interest
3. Owner financing – Seller-provided terms, often more flexible
4. USDA loans – For rural agricultural land
5. Home equity loan – If you own property already

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Ready to Buy Land?

You now know how to buy land.

The right way.

Step by step.

Here's what to do next:

1. Define your purpose – Why do you want land?
2. Set your budget – Include ALL costs
3. Explore financing – Check our owner financing options
4. Start searching – Browse available properties
5. Do your homework – Due diligence saves money
6. Make smart offers – Use contingencies
7. Close with confidence – You've got this

Land ownership changes everything.

Freedom. Security. A piece of America that's truly yours.

Your journey starts now.

Browse Available Land →