As mentioned in part one of buying land, you were provided with some tips on where to start looking, along with specific things to look for. Moving forward, we wanted to mention some other factors that would be important for the land buying process. For one thing, the piece of land you choose must work with the design of the blueprints for the home. In other words, the square footage of the home, architectural style, types of rooms, and then any additional amenities such as a swimming pool need to be considered.
You would also want to know about any known plans for the area in the future. As an example, if you are looking at an area where a residential area will be built, find out the total number of houses to be built, the number of phases involved, any specific zoning issues, roadways, water rights, parking, traffic, and even endangered species. Seriously, there have been many stories in the press whereby people have spent good money to build a home. Once moved in, they find they are plagued by annoying birds or animals. Unfortunately, the animals are on a protected list, which means little can be done. In this case, conservationists may get involved to try to move the animals but chances are against this.
The main goal with all this information is to determine the property value potential. Obviously, you want to build in an area that will build the most equity so you get back what you put into the house plus some. After all, you are probably like other homeowners in that building is a huge investment, one that you hope will one-day pay off from a financial standpoint. If you have concerns such as soil problems or underground springs, it might be worth the money to hire an independent surveyor. For instance, one family in Missouri purchased a great piece of land and then built a $300,000 home on it. Within months, cracks began showing up on the walls. The problem was an underground spring that had softened the soil, causing the house to settle more than anticipated.
Another important tip when buying land is to buy owner’s title insurance, which will provide you the opportunity to gain clear title to that piece of property. The cost for this insurance will depend on the land’s value. Then, to hold the property, earnest money would be put down, which would then let you close the deal. The bottom line is that to learn all you can, hire a builder that can walk you through the process, someone who will work on your behalf to make the transition enjoyable.