5 Tips on Buying Land to Build a House
You want to build a custom home but still haven’t found a great lot? Deciding which lot to buy is an important decision that requires careful and thoughtful planning. But don’t let the idea of buying LAND intimidate you! By following the tips provided below, you can make the process easier. Let’s get started!
Determine Your Budget
Before you begin searching for land to buy, you need to know how much you can afford. Keep in mind that you may also need a loan to finance the construction of your new home. Discuss your plans with a qualified loan officer and learn about the different loan options that best meet your needs.
A Single Loan for Your Land & New Home Construction
If you are buying land to build your home now, you may be able to include the cost of land in your construction loan. At completion of construction, the loan converts to a permanent mortgage loan. This type of construction loan is convenient for both you and your custom home builder.
Determine Your Preferred Location
You may already know the general area of where you want to buy your land. If not, take some time to think about it by considering the following:
• Where do you want to live? Do you prefer city living, a suburban community, or a more rural area?
• Daily commutes. Unless you are building a home for retirement, strongly consider daily commutes. In the excitement of buying land and building a home, a long commute may not sound too bad at first, but after months of doing it, you might really wish you lived closer.
• Is a quality school district important? If you have school-aged children, or plan to in the future, don’t wait until after buying a lot to learn about the area’s schools.
• What resources are important to you and your family? Think about your lifestyle. Do you prefer to live near upscale shopping, dining, and entertainment venues? Is the idea of living by a golf course appealing?
Once you know your budget and the general area you want to buy land in, you can begin your search for available properties. Before you get started, make a list of the features your ideal property must have, as well as those you would prefer.
Decide How Much Land to Buy
What is the minimum size property you would consider buying? Think about the size of the custom home you plan to build, including outdoor living area. If privacy and space between your neighbors is important, know that a 1-acre heavily wooded lot can provide more privacy than a few acres without trees and brush. Does the lot have setback restrictions that don’t allow you to build on certain parts of your property?
Begin Your Property Search
You can conveniently start your search for US! One of our owners is a licensed real estate agent and we have great relationships with other leading Real Estate firms. Just like homebuilders, not all land is created equal. We will help you identify the right home site for you and your family.
Select Your Lot
Selecting the best land for your custom home involves more than just finding a lot in your preferred area that meets your budget. Find out if the land is in a flood plain. Make sure it has proper drainage. The type of soil on the property matters when building a home, so it’s a good idea to get the soil tested before signing a contract. You will also want to learn about any Restrictive Covenants, homeowner association dues, and more.
Will you need a driveway installed? A septic system or water well? What utilities are available on the property? Getting answers to these and other questions will help in your selection of property.
