Buying land and building a home may sound enticing to city dwellers living within a limited space in the city. But, the whole process is not as straightforward and simple as it may sound. From finding the right location to paying the costly price, and eventually building your dream home, the whole process can be quite intimidating especially for first-time buyers. Nevertheless, before even planning on building a home, here are some tips to consider before buying land;
Location is the old adage in real estate that guides investors as well as land buyers. When shopping for land, you should have a general idea of where you would like it to be located. You don’t want to end up building your home in a place far away from your workplace, with no quick access to social amenities such as schools, hospitals, and shopping stores. Moreover, buying a piece of land in a suitable location can potentially increase its resale value, if at one point you may want to sell your land. Simply put, you should shop for a community as well as land.
The land-buying process can result in spending a significant amount of cash, right from land surveying process, to finally paying the price. The price of a land depends majorly on the size and location of land. A huge piece of land will obviously cost more than a smaller one, in addition, if the land is situated in a serene greenspace environment it is more likely to cost more than a piece land located next to a busy highway.
However, the price of a land does not necessarily mean that you have to compromise on the location or the size of the land you want. You may opt to take a land loan to help you finance your desired piece of land. Even though taking on such a loan you will have to incur higher interest rates and down payments, it is worth it since you will get your desired piece of land.
When buying land to build a house, you need to consider the ease of access to basic utilities such as water and electricity. If the land you are planning on buying isn’t located on near municipal utilities, it can be extremely expensive to acquire these utility sources. To find a great place to buy a lot for sale in Little Rock, AR, you may need to search very hard. For instance, if there are no municipal sewer systems installed on the land, you will probably need a septic tank. And even in such a case, a “perc” test needs to be done on the land so as to test the absorbability of the soil to the liquid waste leaving the tank. In the event the soil absorbability is poor, you cannot build on that land nor can the bank give you a mortgage.
Basically, an easement gives another person the legal right to use another person’s property for a specific reason. For instance say, if you bought were to buy land with an easement on it, it allows other people to trespass through it in order to access another lot or a public road. For someone looking to buy land to build a house, an easement on a land will compromise your privacy, thus it is important to do your diligent search so as to ascertain whether the land you are planning on buying has an easement on it.
On the other hand, establishing an easement with your neighbor may not be such a bad idea especially if you need to use your neighbor’s property, for example running a power line across their property or installing a driveway. In such a case, it is advised that you consult a real estate lawyer to help you negotiate an easement and officially document the terms of the agreement. If your neighbor is not willing to negotiate, you may consider suing for an easement as a “way of necessity”. This means that you will have to prove to the court that you really need to an easement on your neighbor’s property.
5. Surveying the land
Having your land surveyed by a professional land surveyor is crucial since it will help you know where the boundaries pass as well as determine if the land is prone to flooding. In most cases when buying land to build a house, the land may have been already surveyed as evident from the corner boundaries on the land itself or even from the property’s paperwork.
However, considering how rampant things can change, it is always a good idea to have the land surveyed again. This will not only highlight new boundaries, if any but also assess the land to ascertain whether building plans are workable. For instance, during the survey, a surveyor may discover issues that can affect your building plans such as high water table on your land, meaning you have to build a house with a firm foundation to prevent water seepage.
As much as the cost of surveyor will definitely increase the overall amount of money spent on buying land, it is cheaper than having to pay for renovations when your house is flooded because of building on a flood-prone land.