Looking to buy land? There’s something thrilling about the idea of buying a vacant lot to build your dream house on. But finding the perfect parcel for a land purchase can be a bit more complex than you’d expect.
Read more to learn how to navigate this process and avoid any land-buying pitfalls.
Buying land in different zoning districts
So, you think you’ve found the perfect vacant land for your future dream home. Before you make an offer for the purchase, check the local zoning ordinances and possible building restrictions.
No matter how appealing a parcel of land appears, if it doesn’t meet the specifications for your intended use, you’ll find yourself with a costly and worthless investment.
Zoning and other restrictions can be accessed through public records. Here are a few things to check before purchasing land:
- Access from a street: Your property must be accessible from a street or road. If the parcel is landlocked, you will need to get an easement across a neighboring property. This means you will need to get permission to pass through the neighbor’s land to get to yours.
- Setbacks: This represents how far from a property line a structure must be situated. If you have 20-foot structure setbacks from either side and your lot is only 50 feet wide, that means your home can be no bigger than 10 feet wide. That won’t work!
- View ordinances: Some local ordinances can place a restriction on your ability to add a second story to your home. This could affect you if your dream home is to have two stories.
What are the costs?
The cost of vacant land to build on varies. But, even if you’re paying cash for land, you’ll need money for a down payment to build on the vacant lot. Though, that’s hardly where the expenses end. You’ll also be responsible for property taxes, utility expenses, and more.
Most likely you’re going to want your home to have water, electricity, and other modern-day conveniences. The cost for these utilities is not cheap.
You may have to pay to install a septic system. This is a series of pipes that empty wastewater deep into the ground, where bacteria break it down. The condition of the land itself is critical. Not all land can sustain a septic system. To determine this, you’ll need to perform a percolation test. This will tell if the ground is able to absorb water at a specific minimum rate.
There are substantial expenses for getting the land ready for construction. Talk with a builder to see what parts are included in their costs and what you will have to cover on top of that.
The idea of buying land to build your dream home on is daunting. But it’s not as easy as you’d think. Talk with a Real Estate Agent and your builder to determine what all the steps are and if it’s something you think you can tackle.