Between towering mountain peaks, a vibrant economy and low crime rates, Utah is one of the country’s most coveted states to live in. But despite all its advantages, buying land here requires careful consideration of the state’s unique terrain and regulations. This article explores some pros and cons of building a home on Utah land to help buyers understand what they’re getting into before making a purchase.
A Pro: Scenic Landscapes
Stunning geological landscapes make up much of Utah’s charm, attracting recreational buyers to camping/glamping retreats and elevating residential plots near canyons or mountains. Prospective buyers willing to pay a premium for sites surrounded by mesas, arch formations, slot canyons and hoodoos will find themselves in high demand. However, buyers need to keep in mind that building is often restricted on lands abutting protected/state park lands.
A Con: Minerals
The Utah desert landscape is rich in mineral wealth, with gold, silver, copper, zinc and molybdenum among the most prominent natural resources produced in the state. However, these mineral deposits also introduce substantial risk to land investment, as commodity prices fluctuate and oil/gas drilling/mining activities may create local ripple effects on real estate. Investors should thoroughly assess any severed mineral rights included with surface property purchases to gauge development limitations and royalty payment potentials.
Utah’s variable terrain and counties with varied zoning laws makes land parcel valuation assessment challenging. Reviewing recent comparable sales, intended land uses, utility access and area growth projections helps establish a starting point for market pricing expectations. Acquiring appraisals and conducting experiential property inspections further helps determine optimal positioning for vacant land listings.
A Pro: Build to Your Own Taste
Unlike purchasing a pre-built home, building on pros and cons of buying land in Utah allows buyers to customize a property with their desired amenities. This can increase future resale value, as well as save money in the short term on energy and maintenance costs. Nevertheless, building a home on Utah land can be time consuming and expensive depending on the level of customizations and materials chosen.
A Con: The Potential for Eminent Domain
Eminent domain is a government-sanctioned power that gives agencies and public utilities the right to acquire private property for the purpose of their work. In a case of eminent domain, the agency seeking the property must offer to buy the land from its owner before proceeding with the acquisition.
While eminent domain is usually used by state or local governments, it can also be used by utilities like railroads and private companies. To avoid a potential conflict of interest, land investors should partner with experienced Utah real estate professionals with deep experience evaluating eminent domain claims before purchasing any property. This ensures the right to receive fair compensation for their property.