Better Business Bureau offers land-buying tips

The slumping stock market is driving some consumers to purchase real estate as an alternative investment. The Better Business Bureau has compiled several tips, including doing research, for individuals who are considering buying a lot or a piece of land.

Purchasing land can be one of the most expensive decisions a person ever makes. And, as with any major purchase, buyers need to be sure they are dealing with a reputable company.

Prospective buyers should be on guard against being lured into a land purchase simply because they received an attractive real estate brochure in the mail that indicated the land is in a warm and hospitable climate with nearby recreation and conveniences.

Buyers also should be wary of salespersons who make the purchase sound "too good to be true" and push for an immediate decision. Without personally viewing the land, buyers know very little about its location, utilities and other amenities.

Before buying land, a wise and cautious investor should:

visit the property before deciding whether to buy;

get any verbal promises and guarantees in writing;

obtain a property report from the salesperson or developer;

research the land's resale value;

determine the extra costs involved for building on the property, such as availability of water and electrical supply;

contact the Better Business Bureau to ask if there have been any complaints against the developer/real estate company; and

contact a local real estate broker and obtain comparative prices for other nearby plots of land.