Do you have a specific vision for your future home? If so, you’ll likely want to build, rather than buy, a house. First, however, you’ll need to find and purchase the perfect piece of land on which to build the home you’ve always wanted. Here’s a quick guide to buying residential land.
Choosing the lot
There are several factors involved in choosing the right lot for your house. Any realtor will tell you that the number one consideration you ought to think about is location. Location will often determine whether or not you will be able to live the life you envision for yourself.
Generally speaking, today’s homeowner values their creature comforts. Unless you’re willing to go the way of our country’s pioneers, the first thing you should ask is whether the essentials, such as sewer, water, electrical and phone connections are readily available. If not, then you’ll want to make sure that you’re covered by the appropriate contract contingencies.
Also determine if there is a clear way to get to and from the property. Are the routes from the property to the stores or facilities you may need to frequent safe and easily passable? Or will a lack of roads pose an obstacle to your daily life?
Is the land even suitable to build on? Are there environmental issues to consider? Is the soil too soft or too hard – qualities that could bloat your building budget considerably?
These are just a few of the things you may have to think over seriously. Equally essential is finding out if the local zoning laws – which help determine what sorts of buildings and how big you can build – will in any way put a damper on your plans.
Making an offer
Before making an offer, research the market values of other properties in the area. Back your offer with reliable data to help facilitate negotiations. You can use the data to put a cap on what you’re willing to pay; knowing the comparables or “comps” will keep you from paying too much for the land.
Buying land (and subsequently building on it) isn’t cheap. It’s best to buy using spot cash, but if your budget doesn’t allow you to make a full payment, you’ll need to look into your financing options.
Banks and other lenders usually find it risky to grant a loan for empty land. A good credit score and a higher down payment can, however, give you a better chance of getting a loan approved.
If the owner of the land is in no rush to cash out and is eager to make the sale, they may consider installment terms. This is definitely an option to consider.
Closing the sale
The land contract between you and the seller will state the price and other terms that both parties agree on. Go over this and other relevant documents carefully.
Reviewing all this paperwork can be intimidating, so have your lawyer or real estate agent help you sort everything out before you sign on the dotted line. With the guidance of the right real estate team, finding the perfect plot of land can prove a whole lot easier.
Looking to buy land for your dream home? Contact Coldwell Banker Cascade Real Estate, a team that can help you navigate your way through all the Rock Island, WA real estate that best suits your needs. Email our team at info(at)cbcascade(dotted)com or give us a call at 509.888.8887 now.