Common Land-Buying Mistakes to Avoid in Michigan in 2026

Buying land in Michigan can still be a smart lifestyle move and a serious investment decision—but the stakes are higher than they were even a few years ago. Values have surged, competition has intensified, and the margin for error has narrowed. For example, Michigan’s average farm real estate value reached $6,800 per acre in 2025, up 7.8% year-over-year—the highest growth rate in the nation—according to USDA’s 2025 Land Values report via AgValue Consulting. In practical terms, mistakes in due diligence can now cost far more than they used to.

Below are the most common (and most expensive) land-buying mistakes Michigan buyers make—plus the steps that help you avoid them before you’re locked into an irreversible purchase.

Failing to Inspect the Property Thoroughly Before You Buy

Listing photos, drone footage, and satellite views can hide the very issues that derail future plans. A full on-site walkthrough—ideally with a survey, maps, and boundary knowledge in hand—often reveals constraints that are invisible online.

• Wetlands and protected areas: Regulated wetlands can require permits, engineered mitigation, and extended timelines. If your plan depends on quick development, wetlands can change everything.
• Old foundations, debris, wells, and legacy hazards: Remnants of prior structures can trigger cleanup obligations and liability concerns (including asbestos risk or abandoned wells/cisterns).
• Neighboring uses and future compatibility: Adjacent properties signal what the area is trending toward—quiet recreation, active agriculture, new subdivisions, or commercial buildout.

When land prices rise quickly, buyers sometimes rush. But speed can be costly. Michigan farm property values rose 7.8% in the past year, outpacing the national average of 4.3%, according to the U.S. Department of Agriculture via Daily Press. A thorough inspection helps you avoid paying premium pricing for land that can’t support your real goals.

Neglecting High Water Table and Drainage Dynamics

Michigan’s beauty often comes with water—lakes, rivers, lowlands, and seasonal saturation. If you plan to build, add driveways, install septic, or even just improve access, you need to understand what’s happening below the surface.

• Seasonal water table swings: Spring thaw and heavy rain can transform “dry” ground into persistent saturation, affecting foundations and road base.
• Percolation limitations: Poor percolation (often from clay-heavy soils) can make septic approval difficult or expensive.
• Mineral and iron issues: High iron can stain fixtures, degrade systems over time, and increase long-term maintenance costs.

If the land won’t drain, your budget will. Ask for soil data, request perc testing where relevant, and review floodplain and wetland information before you commit.

Ignoring Zoning, Master Plans, and Land-Use Restrictions

Zoning controls what you can do—sometimes far more than the listing description implies. Even if land “looks perfect,” local rules can prevent the very use that justified the purchase.

Before closing, confirm:

• Zoning classification (current and proposed)
• Special use permit requirements (and approval likelihood)
• Minimum lot sizes, setbacks, frontage requirements, and density limits
• Overlay districts (shoreline rules, wetlands protections, conservation districts, etc.)

Zoning matters even more as developable and productive land becomes scarcer. Michigan lost 300,000 acres of farmland from 2017 to 2022, representing about 3% of its 9 million agricultural acres, according to the U.S. Census via Daily Press. Reduced supply can push buyers into parcels with tougher restrictions—making it essential to verify what you can legally build or operate.

Overlooking Sewage and Septic Requirements

Even when zoning allows your intended use, wastewater rules can still stop a project cold. Connecting to municipal sewer may be impossible, prohibitively expensive, or delayed by permitting and capacity limits. On rural land, septic feasibility depends on soil conditions, water table depth, setbacks, and local health department requirements.

Common budget surprises include:

• Engineered systems (mounds, advanced treatment units, or pressure distribution)
• Large reserve drain fields required by code
• Extra excavation and imported fill due to saturated soils

Ask early: “Can this parcel pass a septic evaluation for my intended structure size and placement?” Get the answer in writing whenever possible.

Underestimating Access, Easements, and Road-Build Costs

Land can be “near a road” and still be functionally inaccessible. Access is more than a dotted line on a map—it’s legal rights, physical feasibility, and long-term maintenance costs.

Before you buy, confirm:

• Legal access (recorded easement or road frontage)
• Buildable driveway locations (culverts, sight-distance rules, permits)
• All-season usability (mud seasons, snow load, weight limits)
• Cost to improve (gravel base, geotextile, drainage, wetland crossings)

In Michigan, access planning often intersects with forest and recreation parcels. The state has 19.3 million acres of forest land covering 53% of the state, with 18.6 million acres considered timberland, according to the Michigan DNR via Michigan Whitetail Properties. Forest-heavy regions can be incredible buys—but they often involve private roads, seasonal trails, and higher infrastructure costs.

Missing the Bigger Ownership and Market Signals (Including Foreign Interest)

Many buyers focus on the parcel and forget the macro forces shaping Michigan land values and competition. Today, market context matters—especially if you’re buying for long-term appreciation, timber, hunting, agriculture, or development.

Several trends deserve attention:

• Fast-rising cropland values: Michigan cropland values rose 8.2% to $6,350 per acre in 2025, per USDA’s 2025 Land Values report via AgValue Consulting.
• Pastureland gains as well: Michigan pastureland values increased 4.4% to $3,100 per acre in 2025, according to USDA’s 2025 Land Values report via AgValue Consulting.
• Foreign ownership and influence are active policy issues: Foreign entities hold 3.5% of privately owned U.S. agricultural land, according to an MSU study via MSU Today.
• Michigan-specific exposure: More than 1.9 million acres of Michigan’s roughly 28 million acres of agricultural land is tied to substantial foreign interests, according to federal data via Farmland Grab.
• Major single-owner concentration in the U.P.: The Rohatyn Group controls 540,000 acres in Michigan’s Upper Peninsula, representing 5% of the state’s privately-owned forestland, per federal data via Farmland Grab.
• Foreign government ownership: The government of Singapore owns 5% of agricultural land in Michigan’s Upper Peninsula, according to Bridge Michigan via EDRA of MI.

These forces don’t mean you shouldn’t buy. They mean you should buy with clearer expectations: competition may be sophisticated, parcel history may be complex, and long-term land-use politics can affect permitting, taxes, and resale liquidity.

Key Steps That Protect You Before You Close

You can avoid most land-buying regrets in Michigan by treating due diligence like a checklist—not a feeling.

1. Walk the entire property (not just the easy parts) and verify boundaries as best as possible.
2. Investigate water and soils: request drainage information, order soil/perc testing where applicable, and review floodplain/wetland indicators.
3. Verify zoning and future land-use plans: confirm allowable uses, density, setbacks, and permit pathways directly with the township/county.
4. Price infrastructure realistically: access roads, driveway permits, culverts, power extension, well costs, and septic or sewer connections.
5. Review title and recorded restrictions: easements, deed restrictions, conservation limitations, and access rights.

Land can be a legacy asset—but only when you confirm what you’re truly buying: legal rights, buildability, costs to improve, and constraints you’ll own the day after closing.

Final Thoughts

Michigan remains one of the most compelling states in the Midwest for recreation, timber, agriculture, and long-term land ownership. But today’s pricing and competition leave less room for assumption-driven purchases. With values rising—like the $6,800 per acre average farm real estate value in 2025 reported by USDA’s 2025 Land Values report via AgValue Consulting—smart buyers slow down just enough to confirm the fundamentals: inspection, water, zoning, wastewater, access, and title. Do that work upfront, and you dramatically reduce the odds of buying an expensive problem disguised as a dream parcel.

Frequently Asked Questions (FAQs)

How can I evaluate whether Michigan land is suitable for building?

Start with an on-site inspection, then confirm soil suitability with professional testing. A certified percolation test (for septic feasibility), soil borings (for bearing capacity), and a review of water table and drainage patterns can prevent costly surprises. If you plan a basement or heavy structure, ask about seasonal groundwater behavior and local excavation history.

What’s the best way to verify zoning before buying land in Michigan?

Contact the local township or county zoning office and request the parcel’s zoning classification, allowed uses, setbacks, and any overlay districts. Ask whether your intended use is permitted by right or requires a special use permit, and verify the process and timeline in writing when possible.

Should I confirm utility and infrastructure costs before I close?

Yes. Budget for the total cost to make the land usable: electric extension, well depth and installation, septic design or sewer connection, driveway permits, culverts, and road improvements. Many land deals fail financially not because of the purchase price—but because of the post-close infrastructure bill.

What risks do buyers face if they skip due diligence?

Common risks include discovering wetlands or floodplain limits too late, learning that zoning blocks your intended use, uncovering deed easements that restrict building, and facing unexpected access or roadwork requirements. Water table and poor percolation can also make septic approval difficult or expensive.

What soil studies are most useful before construction?

Depending on your plans, consider soil composition testing (including clay content), pH testing (when relevant for land management), percolation testing for septic, and geotechnical borings for structural design. Engineers use these results to recommend foundations, pilings, drainage design, and site grading strategies.

What does an “as-is” land purchase mean, and why does it matter?

An “as-is” clause generally shifts risk to the buyer—often including unknown defects. That can include buried debris, environmental issues, failing culverts, illegal dumping, or undocumented site hazards. Review the purchase agreement carefully and use inspections and contingencies to protect yourself.