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Peachy Profits: Buying Land for Sale in Georgia

Published: 09-15-21 Category: Investing

Specializes in providing actionable insights into the commercial real estate space for investors, brokers, lessors, and lessees. He covers quarterly market data reports, investment strategies, how-to guides, and top-down perspectives on market movements.

This article was updated on 8/14/2023.

Buying land for sale in Georgia can be a profitable, cost-effective investment for investors looking to leverage commercial and agricultural investment opportunities. The Peach State is the 12th fastest-growing state in the Union regarding population and its metro areas, such as Atlanta, Athens, Sandy Springs, and Savannah, continue to attract city-going urbanites looking to enjoy Georgia's subtropical climate and lower costs of living.

The land for sale in Georgia is heavily diversified, unlike some of its other southern neighbors. Investors can purchase urban land, mountainous land, farmland, forest land, and more, and there's plenty of it available. What's more is that Georgia's tourism industry is starting to rebound from the Coronavirus Pandemic: Pandemic-weary Americans are making Georgia a top priority on their travel lists and the recovering job market is grabbing the attention of the unemployed.

With the state's economy, tourism industry, and metro areas beginning to recover and its unemployment rate steadily falling, the commercial investment opportunities to be leveraged by purchasing land for sale in Georgia are many.

#1 – Decide What You'll Use the Land For

You should always take the time to decide what you're going to use the land you purchase for. In the case of Georgia's commercial land, you may want to leverage your investment for farming to contribute to the state's agriculturally focused economy while making some money of your own; or, due to its growing population and recovering tourism industry, maybe you'll build a multifamily property or lease the land to other builders, farmers, or hunters.

How Much Does an Acre of Land Cost in Georgia?

As of Q2 2023, the average cost per acre of land for sale in Georgia is between $4,000 and $8,000 per acre.

The rates per acre for land for sale in Georgia are comparatively low compared to her southern neighbors but may range widely depending on the county, location, and the condition of the land. You may find land for sale in Georgia for as low as $2,400 an acre or as high as $500,000 an acre.

You'll also want to take into account the closing costs on the land and any extra expenses you may incur if you choose to work with a commercial real estate broker. A licensed broker will have additional hours of education and experience as well as intimate knowledge of the local market you're trying to break into that can all assist you in winning favorable terms on your deal, but be prepared to shell out a little extra cash.

These are just a couple of the budget considerations you should be taking into account when searching for land for sale in Georgia.

#2 – Obtain the Right Financing

Speaking of budget considerations, if you're not buying your land in cold, hard cash, you'll want to make sure you're able to qualify for a loan from a lender. The best way to do this is to get pre-approved for a land loan.

There are three major types of land loans:

Improved land loans: Improved land typically has access to common utilities, like water and electricity, and is closer to roads but is generally more expensive to purchase. As a result, improved land loans are easier to obtain for investors and not as risky to lenders; down payments and interest rates are usually the lowest compared to unimproved and raw land loans.
Unimproved land loans: While similar to raw land, unimproved land is usually a little more developed than raw land. Unimproved land typically lacks some utilities, like electricity, while possessing others. Loans for unimproved land aren't as risky as loans for raw land, so the lender may not pummel you with a high down payment and high interest rates; however, they're not as safe for lenders as improved land loans. Stay on top of your credit and create a solid plan of action for repayment.
Raw land loans: This type of land loan is riskier to lenders and usually carries a high down payment as well as high interest rates. Show your lender a detailed, thorough, and long-term land development plan and you'll greatly increase your chances of obtaining a raw land loan. Generally speaking, the lower costs of purchasing raw land are offset by the costs you'll incur when financing that raw land, so stay on top of your budgeting.

If you don't have good credit but are still looking for ways to get approved for a land loan, here are some ways you can improve your credit score.

#3 – Work with a Commercial Real Estate Broker

You can go about your search for land for sale in Georgia on your own, but it's not recommended. Evaluating commercial real estate deals is complex and wrought with legalities you may not be aware of. Forego making the proper considerations and you may lock yourself into a bad deal you'll have to pay for.

A commercial real estate broker is a licensed, formally educated individual who usually specializes in brokering deals in a specific geographical area in the state they're licensed in. They usually come prepared with intimate market intelligence and data that only licensed brokers can access. A broker, as well as a commercial real estate attorney, will be valuable assets for you to take to the negotiation table when buying land for sale in Georgia.

Research Zoning Laws

Zoning laws are regulations that inform property owners on how a certain piece of property can and cannot be used. They regulate building materials, structure types, and other business operations so as to, say, prevent commercial operations in residential areas and vice versa. Zoning laws can be modified by local governments so long as the property type in question will help advance the area's local economy.

Some Examples of Zoning Classifications

Zoning classifications include:

Commercial;
Residential;
Industrial;
Agricultural;
Hospitality;
And more.

Zoning laws can affect the pricing of commercial real estate and can be disputed by residents should conflict arise with their usage. When searching for land for sale in Georgia, pay special attention to the zoning laws of the plots and parcels you're looking at. They'll guide you and ultimately assist you in calculating potential profitability.