Purchasing land for your dream home is a significant financial investment for you and your family. While you may hire a real estate professional to assist you in finding the perfect piece of land, there are ten factors to consider when inspecting each property.
Many people find it difficult to consider purchasing land because of the numerous factors involved. You'll spend a lot of time searching online, looking at land deals, and inspecting neighborhoods, but you might not find anything suitable. Perhaps your ideal home has yet to be built. In this case, purchasing a vacant plot of land through a local real estate agent and constructing your desired structure may be the best option.
Purchasing undeveloped land can be a time-consuming and expensive process, with issues ranging from easements and zoning restrictions to ecological problems that could turn your perfect house into a disaster.
While these elements may appear intimidating and overwhelming, this article will guide you through the entire process. View our guide here and start looking for the perfect plot of land to build your dream home.
Location
No matter why you're buying a home, there is nothing more crucial than location. If you're looking to make an investment, don't buy land that has no resale value. If you want to start a business, don't buy land that is totally isolated and inaccessible to potential customers. And, if you're building a home, choose a location where you'll enjoy spending your time.
You should have a general idea of where you want to buy land before going out to look for it. You can go on an exploratory drive with the assistance of online resources.
For example, if you're looking to buy a few acres of land to build a house, you'll want to think about things like proximity to schools, your job, grocery stores, and restaurants. In simpler terms, you should be looking for a community while looking for a home. You'll know you've made the right decision when you've won in both categories — community and land.
Cost
Real estate is a time and money investment; the more time you spend planning, the better prepared you'll be to spend your money wisely. What kind of costs can you anticipate when purchasing a vacant lot? You should think about title insurance at some point during the buying process.
It “protects owners and lenders from any property loss or damage caused by liens, encumbrances, or flaws in the title to the property.” Consider it your protection against legal issues involving your property.
While title insurance isn't always considered necessary during a property transaction, if you apply for a bank loan or a mortgage, the financial institution may advise you to get it to protect both their and your investment.
Available Utilities
Those of you looking to invest in property and keep it pristine and unaltered won't have much use for utilities. For everyone else, they're a vital element of the equation. Any vacant lot you're eyeing for a home or business will need utility access. That includes electricity for power, gas for heat, and lines for internet, television, and phone.
You'll want some or all of those piped into your property when construction begins. One way to bypass this concern entirely is to purchase vacant land that already has utilities installed. If you don't get lucky with such a purchase, you'll have a few things to deal with, and they'll all cost money. You'll need to work with the power company to connect your property to the nearest power lines.
The same is true for the phone company, and with gas, you'll need to do some research to decide whether to install a tank on your property or connect to local gas services.
Key Takeaway
To prevent issues and challenges with buying vacant land – be it for personal or commercial use, follow these tips for buying land.
There are numerous factors to consider before making the important decision of which land to purchase. While it may appear daunting, going over these factors in a systematic and purposeful manner will enable your decision-making task toward purchasing that dream property.
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