Tips for Buying Land in Today’s Market

Have you been searching for your dream home but just can’t seem to find a house that makes your heart skip a beat?

Buying land in today's market

It is not easy to find the perfect home. And in today's market, it is even harder to find your dream home than usual. This may be an ideal time to buy land and create your own utopia.

Source: bobvila.com

Buying land is not the same as buying a resale home. In this article, we have laid out some tips for buying land in today’s market.

Work with an Experienced Agent

Working with an agent who has substantial experience purchasing land will help you navigate this unfamiliar road. 

Make Sure the Property is Clear of Liens

Doing your homework to ensure the land you are interested in is free and clear of any liens is essential. Be sure to check the title of the property and the deed. 

Source: easytitlesearch.com

Buying land with a lien on it can quickly turn into a nightmare. A lien is a legal claim against land or property and can be used as collateral to repay debts.

Consult with a Builder

Before deciding on a site to build your new home, bring in a builder to give you some insight into the type of home designs that will work. A builder will provide you with options for using your space best and point out potential problems that you most likely won’t think of yourself. 

Ensure Your Finances are in Order

With any purchase, you must know what you can realistically afford. The majority of land purchases happen using cash. Most lenders are hesitant to approve loans for undeveloped land.

Source: homelight.com

When making a cash offer, proof of funds will always make the transaction smoother. Sellers feel more confident once they see that you definitely have the money.

Do Your Due Diligence

The investigation of your future land is referred to as due diligence. Before buying any property, you want to be confident of what you are getting into. Important things to consider are:

Local Zoning Laws

Local zoning laws affect the size of the home you are allowed to build on the land.

Road Access

If there is no existing road access to the land, the property is landlocked. If it is landlocked, you will have to cross through a neighbor’s property to build an access road - quickly escalating into an ugly legal situation. 

Source: indyadvocate.com

Utilities 

When purchasing a resale home, you don’t put a lot of thought into electricity, cell phone reception, sewers, and running water. However, when buying a plot of land, you need to research cell phone towers and how difficult it will be to run your utilities without too much drama. 

Depending on proximity to public utility connections, bringing utilities to vacant land can range from $10,000 to well over $20,000.

Buying Land in Today’s Market

There is much more to consider when buying land and building your dream home than when purchasing a resale home. 

Speak with a seasoned real estate agent who will help you along every step of the way through this exciting process.