Building a new home 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 specializes 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 critical to research the property thoroughly. Just a few considerations 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.