Considering Buying Land? Consider These Critical Dos and Don'ts
Posted on: 26 August 2022
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You have always dreamt of living in a sprawling home on a beautiful piece of land far away from the hustle and bustle of the city. If this is your first time purchasing vacant land for new home construction, chances are the entire process seems very confusing and a little overwhelming. Here are a few simple dos and don'ts to keep in mind when navigating the process of purchasing vacant land for sale.
Do Consider Having an Environmental Survey Performed
Whether the plot of land is near a major city or in the middle of nowhere, it is still wise to have an environmental study of the property completed. The environmental study will determine if there are any contaminants present in the soil. In addition to being hazardous for your family, in some cases, if you do not have an environmental study performed, you might not be able to obtain a building permit.
If the results of the study are not favorable and there would be a great expense necessary to amend the soil or dig a new well, factor in these costs when determining if the land is priced accurately.
Don't Forget to Look at the Price of Nearby Homes
The price of the land is a huge consideration, especially if you are also planning on constructing a new home on the property. While you are creating a budget for the land and the new home construction, consider the recently sold prices of homes near the land. It is not worth spending a small fortune on a piece of land and then investing in a home if nearby homes are not priced competitively.
Do Consider Access to the Road and Utilities
Many people choose to purchase large pieces of land in a rural area because of the privacy it affords. However, while privacy is amazing, it is also important to consider two factors when purchasing land: access to the road and access to utilities. It can be very expensive to become hooked up to your nearby municipality's electrical grid and water system.
Additionally, if there is no driveway or easy access to a main road, you will need to create this access, which can also be very expensive.
Don't Assume You Will Be Able to Secure a Traditional Loan or Mortgage
Finally, you may need to think outside the box to secure a loan for your land purchase. For example, some lenders will provide a type of specialized building loan that will allow you to bundle the cost of the land and the construction costs.
Purchasing a piece of land can be confusing and tricky. Luckily, there are several dos and don'ts to keep in mind that can help make the process simpler.