What to Keep in Mind When Purchasing Land
You can picture it, your dream home on a plot of land in the perfect place. You can’t wait to build your home from scratch so that it can be just how you have always wanted. However, buying land, though it seems simple, requires the buyer to do quite a bit of critical thinking throughout the process. Buying land and building a home is not as simple as just doing that. So, what should you keep in mind when purchasing land?
It’s All About The Location… And Zoning Laws. And Permits.
One of the most important things to consider when purchasing property is where it is located. How close are your amenities, schools, and work? What is the crime rate in the area, and how walkable is it? What are the zoning laws in the area, and what is the city planning to do around you?
Beyond that, what are the characteristics of the land you are buying? For example, how close are you to a waterway? If flooding is a possibility, you’re going to want to make sure your insurance is ready to cover that. How close are you to nature? Will you need to build a fence to keep unwanted visitors out?
How easy will it be to supply your plot of land with electricity, sewage, water, and internet? If you are buying land in more remote locations, these are things you must consider.
Experiencing roadblocks in construction is often seen on plots of land that are not easily able to access water, sewage, and electricity. If a more remote property is what you desire, plan for a longer construction timeline. It will take time to outfit your home with the necessities you need because of a remote location.
Additionally, you must find out if the land you are looking to purchase can be built on. We know that that sounds like a silly thing to wonder, but believe or not, not all land can be built on, or not all of a plot of land can be built on.
Depending on the topography of the land that you wish to buy, not all of the soil is suitable to support construction. Poor soil can affect concrete footing size, and subsequently the cost of construction. In worst case scenarios, building on poor soil can result in your homes foundation shifting, sacrificing the structural integrity of your new construction.
When building on any plot of land, you must acquire permits in order to start construction. The permits are your go card for opening up the ground, and there are several different types of permits. You will have to speak to your city or township about what permits and jurisdictions are put in place for the building of your home.
Get Ready to Budget
Purchasing land, acquiring permits, and constructing a home is a huge investment. Often, people take out loans to fund this purchase. If you’re taking out a loan, or paying out of pocket, you should sit down and establish a budget for all aspects of this process in order to stay on track.
It’s no secret that this whole process will be pricey. So, be prepared to spend the big bucks where it’s worth it, and save money where you can. If you are taking out a loan, be prepared for interest and other fees to possibly accrue.
Have an emergency fund prepared for if anything unexpected happens. Starting from scratch can hold a world of possibilities, so you must leave room to spend extra money just in case any obstacles get in your way.
Pay Attention to the Title and Deed
When buying land, or property in general, it is imperative to pay close attention to the title and deed. The deed will provide valuable information on who owns the property, the rights that are included in the transfer of ownership, and if there are any restrictions that apply. If a deed fails to include this information, you will likely encounter issues later on regarding ownership.
It’s a good idea to purchase title insurance to protect you against any potential legal issues that may come up. Keep in mind, title insurance does not cover errors or fraud connected with the deed or title.
The buyer is responsible for ensuring that valid titles and deeds are in place, not the insurance companies.
Ask For Advice and Surveys
Just like when you are purchasing a home, ask for any and all advice about the land buying process. You can never be too informed! Additionally, just like when you purchase a home, you should have your land surveyed.
Having the land inspected for the boundaries, potential hazards, and risks can keep you from running into costly legal and construction obstacles later on. The land should be surveyed by multiple parties. This would include an environmental surveyor, who will look for any hazardous materials or concerns, and a traditional surveyor, who will determine your property lines.
However, it is not absolutely necessary to have land surveyed, just how it is not absolutely necessary to have a home inspected. It is up to the buyer to choose what makes them most comfortable with their purchase.
Purchasing land is a big decision! Make sure that you take all the necessary precautions to ensure that your investment is protected. If you are unsure of any aspect of the land buying process, Edge Realty may be able to help! Check out the resources available to all buyers via our buyers page. Or, shoot us a message!