What Is Unincorporated Land And Is It a Good Buy?

In your search for land to buy, you may have come across the term “unincorporated” when viewing available properties. This type of land is most common in rural areas, though you can occasionally find unincorporated land for sale in or near a city. 

As with any type of land buy, the more information you have upfront, the better. Keep reading for a quick overview of unincorporated land, including what it is and some benefits and drawbacks of investing in these types of properties.

What is Unincorporated Land?

Unincorporated land is land that is not governed by a municipality. Geographically, this can occur in one of two ways:

• An unincorporated community within a larger incorporated town (or spanning across multiple incorporated towns).
• An unincorporated community that is completely separate from an incorporated town or town.

These types of communities do not have official representation in local governments. They are, however, usually expected to abide by county laws, such as those around zoning, water usage, and waste collection. They may also receive these services from a nearby incorporated town, with funding for these services coming from the taxes of landowners within the unincorporated area. 

Because of this overlap between unincorporated and incorporated townships, it’s probably not surprising to learn that different states have different rules for how they’re managed. So you may have quite a different experience buying and living on unincorporated land in California or Oregon, for example, versus an East Coast or Southern state.

Pros and Cons of Buying Unincorporated Land

Different buyers have different needs and preferences, so it’s hard to say one way or another that you should (or should not) buy unincorporated land. But do make sure you understand some of the basic pros and cons and work with a local real estate agent to ensure you have all the facts regarding landowner expectations, services, and financial obligations. 

Pros

• Less municipal oversight – You’ll likely still have some rules to abide by, but many unincorporated areas are more lax when it comes to land use and zoning regulations.
• Potentially lower sales taxes – Many unincorporated areas have lower sales taxes than their neighboring incorporated towns, which is relevant for things like retail purchases and car registrations.
• Increased Privacy - Since unincorporated areas often have larger lot sizes and fewer restrictions, they provide greater freedom and privacy to use your land as you wish.

Cons

• Fewer services – Every unincorporated town has its own rules for how essential services are handled (think fire, policing, water, school transportation, road maintenance, and so on), and, in some cases, certain services may be more expensive, less efficient, or non-existent.
• Potentially higher property taxes – Property taxes vary greatly by state and county, though some unincorporated areas do end up having higher property tax rates than neighboring towns because essential services are each paid for separately, rather than as one lump sum.
• Limited Infrastructure - Unincorporated areas may lack amenities like paved roads, public transportation, or street lighting, which can impact the quality and convenience of life.

How to Evaluate Unincorporated Land Before Buying

When considering unincorporated land, a thorough evaluation is crucial to ensure it meets your expectations and needs. Here’s a detailed method to do it effectively.

• Researching Local Regulations: Start by understanding the local zoning laws and land use regulations. While unincorporated areas often have fewer restrictions, they still might have some specific rules regarding environmental protection, building codes, and land use. To have first-hand information, contact the county planning department.
• Evaluating Available Services: Explore the essential services provided in the area, such as waste management, water, law enforcement, and fire protection. In unincorporated areas, these services may be limited or provided by neighboring incorporated towns, which could affect your costs and access.
• Assessing Infrastructure Needs: Unincorporated areas might lack these amenities and potentially require your investment in development, so it’s important to consider the state of the roads, public transportation, and street lighting.
• Consulting with Local Experts: Local real estate agents experienced in unincorporated land can provide valuable insights into the potential challenges, area market trends, and overall property value. Additionally, consulting county officials can help you understand any local nuances or upcoming changes that might impact your purchase.

Is Unincorporated Land a Good Buy?

If you value privacy and prefer less municipal oversight, unincorporated land might be an attractive option, especially in rural areas. As these properties often come with fewer zoning restrictions and greater freedom in how you use and develop the land, it can be appealing for those looking to live in a recreational vehicle (RV), build a custom home, start a hobby farm, or enjoy a more secluded lifestyle. Additionally, the potential for lower initial property costs can make unincorporated land an appealing choice.



However, it’s important to weigh these benefits against potential drawbacks. Services such as road maintenance, policing, and fire protection may be limited or more expensive in unincorporated areas, and you may need to cover these costs separately rather than through municipal taxes. In addition, obtaining permits and managing infrastructure issues can be more challenging in these areas.

At the end of the day, the decision to buy unincorporated land depends on your personal preferences and needs. Assess the available services, costs, and the overall value of the freedom offered to determine if it aligns with your goals and lifestyle.