September 14, 2019
Building a new house from scratch can be a dream come true. The idea of
designing the perfect property with morning sun in the kitchen and evening
breezes on the deck can be exhilarating; the first step to a successful project is
finding the right piece of land on which to build. This can present challenges if not
approached correctly.
Top Tips When Buying Vacant Land
Hire Experience – More than most real estate transactions, it’s critical to
hire an agent who has experience in vacant land purchases and can guide you
through the steps.
Expect to Pay Cash – Finding a lender for vacant land can be very difficult.
Those who will finance land typically require a 50% or higher down
payment and above average interest rates and terms.
Get the Neighborhood Comps – Do not neglect to understand home values
in the community so you do not over, or under, build your home.
Do Your Due Diligence – It is extremely important to research the property thoroughly.
Just a few considerations much include.
o Site Surveys and Environmental Testing
o Easements and Zoning Restrictions
o Lot Survey and Boundaries
o Utilities and Water Rights
Once you’ve completed these preliminary reviews, it’s time to consult with an
architect and General Contractor who will then begin to develop concept
drawings to consider. Even at this stage, you might find that the home you want is
not appropriate for the land you’ve chosen. Staying flexible is a key component to
searching for land; remember that by following a few tips, you can ensure you
find the right lot for your dream home.
