It’s nearly impossible to find an existing home that fits your needs perfectly. For this reason, many home buyers look for land to build their dream home from the ground up. While there are many pros to taking this route, there are some important things to understand before you get started.
1. Check for property restrictions
Before purchasing a piece of land, you should check for any ordinances or restrictions that might impact the construction of your home. You may face restrictions on how large your home can be, where you can build it, or even what kind of siding you can use.
2. Find the right lender or pay in cash
Not every bank will agree to lend money for land purchases. In fact, many banks avoid this type of loan since it can be difficult for them to sell the loan if you default on it, making it risky. Some lenders will agree to loan you money for a land purchase, but they’ll require a hefty down payment.
3. Check out the surrounding area
As you would when purchasing an already built home, check the area around the land you’re considering to ensure it’s where you want to be. Determine what neighborhood features are important to you and see what the location has to offer. It’s also crucial to check out your neighbor’s properties. If the homes surrounding you are not well-kept, it can impact the overall resale value of your home.
4. Don’t forget about zoning laws
You can’t purchase a piece of land with the assumption that you’ll be able to rezone it to fit your needs. Your perfect piece of land might be zoned specifically for industrial or farming purposes. If you’re considering purchasing a piece of land that isn’t currently zoned for residential purposes, you should inquire about whether you can rezone it before submitting any type of offer.
5. Survey the property
Once you’ve purchased land, you should hire a professional to have it surveyed. If the lot has been vacant for quite some time or is in close proximity to other pieces of land, it’s important to know where your property lines begin and end. This helps ensure that your neighbors aren’t invading your space and you’re not invading theirs. To ensure the safety of your family, it’s also important to perform an environmental test to check for any natural hazards or contamination in the soil.
To avoid any problems with land you’re considering purchasing, be sure to take these important things into consideration. It’s best to consult with a professional ahead of time if you have any questions about the purchase of a piece of land.
