It can often be difficult to find your dream home, which is why more and more people are opting to buy vacant land on which they can build their own property that is perfect for them in every way possible.
If you are thinking about buying vacant land right now, here are some tips that will help you to ensure you make the right decisions for you and your family:
Don’t expect a significant mortgage
Something many people do not realize is that, when you are buying a vacant lot to build your own home, it is much more difficult to secure a home loan that will enable you to do so than it would be if you were simply buying a piece of ready-made real estate.
In fact, you might find that banks are only willing to lend you 40-50 percent of the land value, which means you will probably need to build up your savings before you think about buying vacant land at all.
Work with a real estate agent
Many people think that buying land is simple, and therefore, they do not bother to hire a real estate agent to help them along with the process. This is usually a big mistake because real estate agents who specialize in land sales will be able to help you find a plot that has all of the right permissions for what you want to do, they will know if you are able to bring the mulchers in to clear the land or whether certain trees are protected; they will know whether the land is able to be subdivided to make multiple plots; they will have the best contacts to get the best deals. Work with them and life will be much easier.
Think about the value of local real estate
Before you buy a plot of land, you should take the time to research how much properties in the nearby area sell for. This will give you a good idea of whether building a home there is likely to give you a decent return or now. Of course, you should bear in mind that your bespoke home may well be worth more than average, but it’s still a good idea to get a ball park so you can work out whether the investment will be worthwhile or not.
Pay for environmental testing
When you are buying an expensive parcel of land, it can be tempting to cut corners where you can to save as much money as you can. One area where you should absolutely not think about cutting corners is when it comes to environmental testing.
Environmental testing is really just like the inspection you have on a home before you buy it. It can throw up important information such as whether the land is contaminated or if it is likely to flood, or even in the soil is not great for growing crops – this is all information you need to know before you buy because it may prevent you from building your house or stating our own agricultural business or whatever it is you want to do.
Take utilities into account
Before you buy a parcel of land, you should take into account how easy or difficult it will be to run water and electricity, and any other utilities you may need at the property. If land is not close to amenities like sewer systems, it can cost w whole lot of money to get it on the grid and that could wipe out any benefit of buying land in other areas, so you definitely need to do your homework and talk to all the relevant people before making a decision.
Don’t speak to the neighbors
When you are buying a house, it is often recommended that you do talk to the neighbors to see if they are nice and because they can tell you a lot about what the neighborhood is like. When you’re buying a vacant lot, however, this is not always a good idea, primarily because if they find out your plans to build, they might oppose said plans and get a bunch of people together to do what they can to block them. Buty the land and then get to know the neighbors if you wish to do so.
As you can see, there is a lot more to buying vacant land than you might have thought, but if you pay attention to these tips, you will be able to navigate the process with greater ease.
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