A lot of buyers assume land is simpler than buying a house. It’s actually the opposite. There’s no structure to inspect, but there’s a lot more you have to dig up yourself.
Here’s the biggest thing to understand going in. Michigan doesn’t require a seller to give you a disclosure statement when you’re buying vacant land, the way they would with a house. So the burden is on you to find out what you’re actually getting. That’s not a reason to be nervous about buying land. It’s just a reason to slow down and go through the right steps in order.
The first step is zoning. Before anything else, find out how the parcel is zoned and what you’re actually allowed to build there. A township can tell you in one phone call whether that lot supports a single family home, what the setbacks are, and whether there are any overlays or restrictions tied to it. I see buyers skip this and fall in love with a piece of land before they know if their plan even works on paper. Do this first.
Once zoning checks out, the next step is figuring out water and septic. Most vacant parcels around Ypsilanti, Belleville, Van Buren Township, and the areas outside Ann Arbor aren’t on municipal sewer and water. That means you’re on a well and a septic system, and the county health department has to evaluate the site before you can build. This is usually called a land use evaluation or a perc test. A sanitarian comes out, checks the soil, checks the water table, and tells you what kind of septic system the land can support, if any. I always tell buyers to make a passed evaluation a condition of the purchase agreement, not an afterthought. It typically costs a few hundred dollars and it can save you from buying land you can’t actually build on.
From there, look at access. Does the parcel have deeded road frontage, or does it rely on an easement across someone else’s property to get in and out? Easements can be perfectly fine, but you want them recorded and clear before you close, not something you’re untangling after the fact.
A survey is worth the money too. Vacant land boundaries are far easier to get wrong than a house lot, especially on larger or irregular parcels. If the corners aren’t obviously marked, get a survey done, or make it a contingency in your offer.
While you’re at it, ask about utilities and mineral rights. Confirm how far the parcel is from electric and, if it matters to you, broadband. And know that in a typical Michigan land purchase, mineral, oil, gas, and water rights under the soil transfer to you at closing unless the contract says otherwise, so read that section of the purchase agreement carefully.
On the money side, financing vacant land works differently than financing a house. Several Michigan credit unions offer dedicated vacant land loans, but expect a larger down payment than you’d put on a home, since land is considered higher risk to lenders. Some buyers use a land contract instead, where you make payments directly to the seller over time and the deed transfers once it’s paid off. That can be a good option, but have an attorney review the terms either way.
One more thing worth knowing before you buy: the property taxes on vacant land aren’t treated the same as a home you live in. The principal residence exemption only applies if the land is contiguous to a home you already own and occupy. A standalone vacant parcel doesn’t get that exemption. And when the land changes hands, the taxable value uncaps the following year, which can raise the tax bill compared to what the seller was paying. Worth factoring into your numbers before you make an offer.
Last step is closing itself. Get title insurance, even though Michigan doesn’t require it. It protects you against liens, unknown heirs, or old claims sitting in the public record that a simple search might miss. Your closing should confirm the deed, the survey, the septic and well findings, and the zoning are all lined up before you sign anything.
None of this is complicated once you know the order to do it in. Zoning first, then septic and water, then access and survey, then financing and taxes, then title and closing. Skip a step and it tends to show up later as a costly surprise instead of a simple question you could have asked upfront.
If you’re looking at a piece of land in the Ypsilanti, Belleville, or Ann Arbor area and want a second set of eyes on it before you make an offer, I’m happy to walk through it with you.
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