The first in the realization of building your own dream home is to buy a piece of land with which you’re going to develop the structure. And if expanding your yard or business is what you are after, you could purchase the empty property right across your house.
Of course, every right-thinking person will want to pick the ideal site for their dream home, especially if they’re moving to a more rural area or building in a brand-new neighborhood. However, the procedure of purchasing a piece of land differs from that of purchasing a home and necessitates the assistance of a knowledgeable real estate agent.
Choose the best agent for you
Choosing and working with a real estate expert who has experience in the purchase of land is the best way to go when planning on getting a landed property.
This is so because many realtors concentrate on residential properties and may not be as familiar with the commercial real estate market as they are with the residential market. Working with a land specialist ensures that he/she is knowledgeable about your local market and can show you property parcels that match your needs.
A lot of agents who specialize in assisting purchasers in locating vacant land for sale have a page on their website dedicated to that service, thereby making it possible to obtain a list of competent agents by calling your local real estate agents organization. Also, there is no need to feel pressured to choose the first agent you speak with. So feel free to deal with a few different agents until you discover one that understands your requirements and has experience with land purchases.
It’s easier to determine that a house is built in an area designated for residential use, but it’s quite tricky to know if a land is for residential purposes or not. And this is where the skill of your agent is put to work, as he/she should be able to show you land properties in the areas zoned for residential purposes.
Furthermore, before making a purchase, you should always verify with your local zoning agency. Similarly, your real estate agent can assist you in checking the property title for any possible easements or liens. Whether the land is undeveloped or in a rural area, check with local utility companies to see if they will serve the lot.
Make a financial plan
If you intend to purchase your land with the procurement of a loan from a bank or mortgage lender, have it at the back of your mind at the onset that most financing institutions don’t usually assist in the purchase of vacant land, like they do with a home purchase.
And the few that do offer land loans to finance the purchase of an empty lot, may have higher interest rates than typical mortgages and may require as much as 50% down payment. Many lenders may grant construction loans using the land as security if you can come up with the cash to purchase the land outright. These loans are often easier to obtain and have better terms.
Make provisions for additional costs
Although buying a piece of land and having a home built to your preference may be less expensive, don’t forget to budget for the price of improving the unoccupied site. Before building on terrain that has never been developed before, it is common to have it leveled and tested for stability.
In the same vein, local water providers may charge you for laying pipes, while the local authority charges you for fees for the maintenance of roads created to link rural land, all of which are practically non-existent when you buy a ready-made home. So once you are prepared for such contingencies, you won’t be surprised by much.