The Home Buyer's Korner

Information presented should be used for educational purposes only.

September 13th, 2014

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Land to Build a New Home

Vacant LandSome of us want an already built home with landscaping in place and some of us want raw land to build our dream home.  While buying vacant land and building a new home is a great way to ensure that you get the home and location you want, it’s also a major undertaking.

Be sure to taking into account these initial considerations before buying any land for your new home.

I’m sure you’ve heard the phrase “location, location, location” and it’s a very prudent maxim when buying land. The parcel of land that you buy should be in a good geographic location and on stable ground. Area you’d mostly want to avoid would be parcels near water sources like a nearby swamp and hills should be minimal. You’ll also want to be aware the zoning if any and other regulations that you’ll be require to adhere to when purchasing the land.

It likely that new land won’t have utilities laid out under or over the land you might be considering. If this is the case, you will need to invest in electrical, water and septic or sewer hookup for the home. This process involves communicating between the municipal government, utility companies, as well as insure things like distance between a possible well and septic system has a sufficient distance to meet FHA, VA or USDA requirements; if you or any future home buyers use this type of financing. These costs and the implementation can be a challenge depending on your properties location and distance from municipal or regional infrastructure.

Many home buyers are unaware how legal access to land can affect their purchase. An easement refers to the legal right of other entities to use your land even though they do not own it.  Another issue is that often times home buyers purchase land where it can only be accessed by a private road and think a simple easement is all they need.  Most lenders however, want a private road maintenance agreement in force before offering any financing. Before you buy land, you and your attorney should investigate whether or not the land has any easements and if these easements meet or interfere with your goals for the property.

These are just a few of the major considerations you need to make when you buy land. Purchasing a plot of land is quite a bit more complicated than buying a house and if you’re not prepared it can easily turn into a nightmare. However, a well laid out plans can give you a great backdrop on which to build the house of your dreams.

HOME OWNERSHIP TOOLS

FHA 203K

Your Home Purchasing or Refinancing & Renovation Tool

Mortgage Loan Officers, Real Estate Agents & General Contractors

are ready to assist you with your home purchase

FANNIE MAE HOMESTYLE

The Conventional Alternative to FHA 203K

Great for Real Estate Investors and Second Home Renovations

You Mortgage Loan Officer, Real Estate Agents & General Contractors

are ready to assist you with your home purchase

USDA RURAL DEVELOPMENT

Up to $10K for Home Improvements, Renovations or a Simple Remodel

Your Mortgage Loan Officer, Real Estate Agents & General Contractors

are ready to assist you with your home purchase

A SIMPLE HOME SHOPPING INSPECTION TOOL

Organizing your home shopping experience affords a wise decision making process.

This simple home inspection tool makes your ultimate buying decision a smart one.

To print this document click on “Open in New Window” located at the lower right corner; click on “File”; then click on “Print”.  In the center of the screen you will have the option to “Create A Printable PDF of the Presentation”.

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