Posted on: 9 July 2018
For many people, building a home is their idea of the quintessential American dream. From the setting to the architectural style of the home to the kitchen cabinet hardware, every design decision gets to be made by you, creating a truly custom home that reflects who you are. Most of these choices are purely aesthetic. When it comes to your land, however, there are more practical decisions to make. Here are three things you should be aware of when it comes to the land you choose to build your future dream home on.
Come With Cash
Unless you have a phenomenal working relationship with them, a bank isn't going to give you a loan to buy a piece of land. They need to have the collateral of a home or other building to secure their investment. A raw piece of land isn't going to provide them with the security they need. The good thing about saving your money for the land, however, is when it comes time to build, your mortgage will be that much less, and when the home is finished, you'll have instant equity from the value of the land.
Know What You're Buying
A small residential lot in a planned subdivision will likely offer municipal utilities like water, sewer, electricity, natural gas, telephone, internet, and cable. That 40-acre slice of paradise out in the country probably won't. For some things, you can work around it the way people have always done it, such as installing a septic system, drilling a well, and heating with fuel oil or wood. Electric may not be on your land, but it may be at the street. This is easy enough, but it will still cost additional money. Cable and internet may not even be available, which could be disastrous for the self-employed. Before you make any offer, you need to know exactly which utilities are available and how much it will cost to get the ones that aren't currently there. You also want to be clear on what the land is zoned for and the uses that are allowed. If part of your dream is to have a small farm with chickens and goats in the backyard, but the land is zoned residential, no matter how perfect everything else is, this land won't work for you. Smaller subdivision lots may also have neighborhood covenants in place that dictate things like your siding color and how many cars you can have in the driveway. You need to know the specifics before you sign the dotted line.
Hire A Buyer's Agent
Finding land for sale in the location you want with the amenities you are looking for and in the price range you can afford isn't an easy task. Having an experienced real estate agent working on your behalf will make the process easier.Share