Lots that no longer have a market
I am a newbie investor who is looking at the delinquent tax deed inventory held by various states. One of the things that leap out at me is the number of properties that are 0.18 acre or less. Finding lots that are 0.13 to 0.10 acre is common. When you look at a map that shows the parcel lines, the number of very small lots like this is huge. Clearly at the time the land was divided and sold, it was considered acceptable to building houses on this size lots, even with septic.
Well, times change. You read the current minimum size for a buildable lot in the code requirements outside urban areas, specially when septic is involved, and these lots simply don’t pass. Talking to zoning officers, I find that in some municipalities they are grandfathered in, but in others this exemption ends when the lot changes hands.
What I am seeing is a picture of a huge amount of semi-rural land that is frozen in time—impossible to use and therefore impossible to sell. No wonder so many owners stop paying taxes on them and just let the government take the lands.
That is my initial impression, but I am not an expert. I would like to hear the thoughts of other, more knowledgeable people.