Finding your own little piece of land to build your dream home definitely sounds like a great accomplishment yet the undertaking can be quite overwhelming. But learning as much is you can add ahead of time and be educated on the do’s and don’ts, pros and cons of buying a parcel of land will help you put yourself ahead of the game. Here are some great do’s and don’ts when you’re considering buying vacant land.
Make sure you’re working with a professional real estate agent that understands how to buy land. A lot of real estate agents simply work with residential homes so they are used to properties and existing houses and condominiums. Buying land is a little bit different and if you are incorporating a construction loan with the property purchase, you’ll need to find the right lender and the right agent that understands how to go about this process.
Consider the value of homes in the neighborhood. If you are buying a vacant parcel of land in an existing subdivision you want to know what the value of those homes might likely be once completely built out. This will help you make informed decisions and your lender will understand how best to conform your loan.
Take utilities and road access into account. This is primarily if you are buying a parcel of land not in a developed subdivision but on its own, customize, away from a traditional neighborhood. Make sure you have utilities and all the amenities you’ll need plus easement or access road availability.
Related: Practical Advice on Buying Land
Don’t stress about getting a loan but understand the process and how it is much different than a residential property. Getting alone might be a little bit more difficult and you might need more down payment or you might need to conform your loan into a construction or rehab loan so that when everything is built out you can redesign the loan to fit the need at the time.
Don’t skip surveys or environmental tests. Just like a home inspection is critically important to a house purchase, the right tests and surveys are imperative when buying vacant land even if you’re buying in a subdivision. Builders and surveyors can make mistakes so you wouldn’t want to find out 10 years down the line that your neighbor is actually on your property or vice versa.
Don’t talk to neighbors. This is an odd one because in an existing neighborhood where you’re buying a house talking to the neighbors is a great way to get a better feel for the area but neighbors who are not used to having raw land near them may not want to upset the status quo and hear construction noise all hours of the day and night for a couple of months. Hold off on meeting the neighbors until the home is built and you’re moved in.
If you’re looking for vacant land in or around Mesa Arizona I would love to offer some of the newer subdivisions or one-off vacant parcels perfect for building your dream home.
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