Purchasing land for the purpose of building a new home site can be fun. You may go it alone or seek the help and instruction of a professional (real estate) agent or broker. I always advise you select an agent that is quite familiar with your target area which can be a benefit, as much of the information required upfront is done for you. But in reality, how much information will an agent extract on a given parcel of land? This is where you, the land buyer, must do some homework. You need to become aware of several key factors before you sign on the dotted line.
Remember, it is always advisable to select a parcel that isn't overly expensive to develop. Take for instance, a parcel of land that won't leave you running to your bank for more money to put out thousands of dollars in a septic system, if one is required. In many cases, one of these systems could ruin the aesthetic view of your homesite i.e; Mounded septic systems, where gravity flow is not obtainable except through the workings of a lift station.
Where to buy; You have probably chosen an area to purchase land due to your wants and needs.
If you are on a tight budget your needs may have to prevail. For example, you may want to live near a city, but the tax ramifications and cost for permits may lead you to search in another area, even a different county. Seeking an area that will provide your children with a highly rated school system may be your top priority. What you want and what you need should be put onto paper where you can gather an image of what is most important to you and then come to a conclusion.
Never buy the first property you see and always walk each property; If you decide to buy the first parcel of land you visit, then how will you draw a comparison or know that you've made an educated decision? Its likely you will always wonder if you gotten a good value. To make a wise decision, you must compare prices, aesthetics, cost (for the property and cost to develop) and feasibility. You should make it a point to visit many properties and narrow your selection down to three choices. If you use this method and find out that your first selection is non-buildable, then you won't have to search again. You'll have your second parcel of land ready to buy. If you come across a piece of land that is heavily wooded and the price seems very reasonable, there may a catch. So comb through the bushes and trees to see what is hidden. This property could be on a slope, it could be environmentally sensitive such as wetlands, flood and even a habitat for protected animals. Also, the cost to clear the land could be very expensive and wasn't in your budget. There are many people who buy property sight-unseen or by viewing pictures.
The more you know about a parcel of land ahead of the purchase, the more you'll save in time and money after the closing. Here we come to the meat of the subject of buying land on a tight budget. A complete book can be written on this subject. It is imperative that you obtain the answers to several key questions when seeking to purchase land for whatever reason. The object is to locate a parcel of land that fits within your budget needs comfortably and is visually pleasant or can be brought up to your standard of what appears pleasant to the eye. But first things first.
Now that I have chosen my three favorite properties, what do I do and where do I go?
You'll need to access the parcel identification numbers (PIN) that will give you specific details about your property of interest. You need to have your agent or yourself go online, if you have internet service to access the information. In most cases undeveloped land will not have an address, so the (PIN) will have to do. You can view information about a specific property such as past warranty deeds, past property taxes paid, the legal description, county or jurisdiction and even maps that detail topography. This information is generally called a property card. Take the information you are able to obtain and visit the jurisdictional zoning /building department. Tell them you want to put a home on the property. Ask them if your first choice is a lot of record and can a home be built or placed on that parcel. Even if it is buildable, you will want to know if any flood, wetlands or any other sensitive situations exist on the property. Once you receive a positive result, continue on to your second and third choice parcels of land you have an interest in and have them check those too. Doing this will save you trips to building department. You will also want to ask them about the the cost for permits, water and sewer tap fees, if applicable, and any impact fees that are associated with developing new property. Be extremely cautious of impact fees as they can be a costly burden to overcome. You will also need to know that you have legal access to and from your property.
To stick to your budget requirements, you must learn more about what lies beneath the ground. This may have a direct impact when determining which of the three parcels to purchase. That being said, your next question will be pointed in two directions and it involves the type of sewage system required for your three lots of interest. If you are wanting to move to an area where water and sewer are provided by the city or a small community, pay close attention to the costs of water and sewer tap fees. These fees will vary depending upon where you want to live. Charges for these tap fees can be tens of thousands in one area and several hundred dollars in others. If you search for a home site that puts you further out in the country, you can expect to have a septic sewer system.
Septic Systems
Never Buy a parcel of land until you receive septic approval. Without septic approval you will not have the ability to build. The first thing to do is contact your Environmental Health Department and tell them your PIN and ask them if you can expect to receive septic approval for your target property. If he cannot guarantee septic approval, then you will have to either ask the owner of the property if he is willing have a perc test performed or share the expense. A perc test is a soil analysis to determine whether or not a property has suitable soil for the filtration of liquid waste water. It can also determine the type and cost of a system if septic approval is granted. Also, you should contact a minimum of two state licensed septic tank installers. You can receive a lot of information regarding the size and the estimated costs of a septic system based on the soil test and number of bedrooms you propose to build. Their experiences in your general area will provide the answers you seek. Keep in mind, sandy soil conditions are conducive to lower septic system costs. Lime rock, clay and high water tables, to name a few, will cause your budget to spiral out of control. Knowing ahead of time what to expect is key when budgeting your money for land improvements.
Water wells
When you choose to live in an area outside of town you may be required to have a well drilled. It is advisable to contact a minimum of two drillers. You will want them to give you information on the well depth averages for your general area of interest. An experienced driller will be the best source to gain an idea of well depths for your target areas. You wouldn't want to purchase a piece of property and later find out that your well depths are approaching 500 feet. An experienced well driller can also be a source of keeping you abreast of the quality of drinking (potable) water in and around your area. If the expected well depths are exceedingly deep, its best to look elsewhere, even if its your first chosen property. If the well water for your first choice property has a significant chance of having lime or sulfur, expect high maintenance costs especially sulfur and avoid the stench and ongoing costs. A well driller will be able to give you information on water quality in your area. Its better to move on to your next favorite choice of properties with just a hint that your water could be tainted. Also, you can check with the jurisdictional water management. They can also give you vital information regarding water quality and depths of wells.
Power Companies
You will need to locate and contact your potential power (electrical) company.
It is imperative that you are certain that electricity to your new home is attainable. Even if you get the green light, additional expenses to accessing power to your home from a distant transformer or even across the road can run into the thousands. So ask whether additional costs may occur. If you cannot get a definite answer, ask them to come out and visit your site and meet them in person.
Cable, Phones (land line or cellular) and internet
You must to seek out these utility providers for your target areas. None, some or all of these utilities may be available. With some investigation, you'll be able to determine which of them you can or cannot live without.
Survey
Its extremely important to know your property boundaries. If you are mortgaging land, a survey will likely be required by your lender. It would be a disaster to learn you purchased a parcel of land and find out down the road you aren't on the right property. A well drawn up survey should indicate any flood planes, easements and contour lines dividing buildable and non-buildable areas on your lot. To add to that, a clearly surveyed lot will act as a guide for you to conform to any setback guidelines required by the county, utility companies, city or other jurisdictions. It will also enable you to determine if a neighbor is encroaching your property with buildings, fence lines or junk cars, etc.
I hope this article will enable you to seek, select and purchase quality property effectively and save you thousands of dollars and a lot of wasted time in the process. You are now armed with information and food-for-thought, providing you with the tools necessary for searching and choosing that perfect piece of land you will soon call home.
I have been permitting and coordinating land developing projects for the past eleven years. Averaging between 150-200 projects annually. I have come across land buyers that have selected properties without proper research. The result, panic stricken customers wondering how this could happen and scrambling to secure additional funds to feed unforseen costs. Not much can go wrong that I haven't seen. Unfortunately, by the time I meet the customer, they have already purchased land.
In an attempt to educate the land buyer, I authored the ebook Wise Acres Guidebook to Buying Land on a Tight Budget. My book gives practical advice on purchasing land on a budget and many tips on developing land.
Remember, it is always advisable to select a parcel that isn't overly expensive to develop. Take for instance, a parcel of land that won't leave you running to your bank for more money to put out thousands of dollars in a septic system, if one is required. In many cases, one of these systems could ruin the aesthetic view of your homesite i.e; Mounded septic systems, where gravity flow is not obtainable except through the workings of a lift station.
Where to buy; You have probably chosen an area to purchase land due to your wants and needs.
If you are on a tight budget your needs may have to prevail. For example, you may want to live near a city, but the tax ramifications and cost for permits may lead you to search in another area, even a different county. Seeking an area that will provide your children with a highly rated school system may be your top priority. What you want and what you need should be put onto paper where you can gather an image of what is most important to you and then come to a conclusion.
Never buy the first property you see and always walk each property; If you decide to buy the first parcel of land you visit, then how will you draw a comparison or know that you've made an educated decision? Its likely you will always wonder if you gotten a good value. To make a wise decision, you must compare prices, aesthetics, cost (for the property and cost to develop) and feasibility. You should make it a point to visit many properties and narrow your selection down to three choices. If you use this method and find out that your first selection is non-buildable, then you won't have to search again. You'll have your second parcel of land ready to buy. If you come across a piece of land that is heavily wooded and the price seems very reasonable, there may a catch. So comb through the bushes and trees to see what is hidden. This property could be on a slope, it could be environmentally sensitive such as wetlands, flood and even a habitat for protected animals. Also, the cost to clear the land could be very expensive and wasn't in your budget. There are many people who buy property sight-unseen or by viewing pictures.
The more you know about a parcel of land ahead of the purchase, the more you'll save in time and money after the closing. Here we come to the meat of the subject of buying land on a tight budget. A complete book can be written on this subject. It is imperative that you obtain the answers to several key questions when seeking to purchase land for whatever reason. The object is to locate a parcel of land that fits within your budget needs comfortably and is visually pleasant or can be brought up to your standard of what appears pleasant to the eye. But first things first.
Now that I have chosen my three favorite properties, what do I do and where do I go?
You'll need to access the parcel identification numbers (PIN) that will give you specific details about your property of interest. You need to have your agent or yourself go online, if you have internet service to access the information. In most cases undeveloped land will not have an address, so the (PIN) will have to do. You can view information about a specific property such as past warranty deeds, past property taxes paid, the legal description, county or jurisdiction and even maps that detail topography. This information is generally called a property card. Take the information you are able to obtain and visit the jurisdictional zoning /building department. Tell them you want to put a home on the property. Ask them if your first choice is a lot of record and can a home be built or placed on that parcel. Even if it is buildable, you will want to know if any flood, wetlands or any other sensitive situations exist on the property. Once you receive a positive result, continue on to your second and third choice parcels of land you have an interest in and have them check those too. Doing this will save you trips to building department. You will also want to ask them about the the cost for permits, water and sewer tap fees, if applicable, and any impact fees that are associated with developing new property. Be extremely cautious of impact fees as they can be a costly burden to overcome. You will also need to know that you have legal access to and from your property.
To stick to your budget requirements, you must learn more about what lies beneath the ground. This may have a direct impact when determining which of the three parcels to purchase. That being said, your next question will be pointed in two directions and it involves the type of sewage system required for your three lots of interest. If you are wanting to move to an area where water and sewer are provided by the city or a small community, pay close attention to the costs of water and sewer tap fees. These fees will vary depending upon where you want to live. Charges for these tap fees can be tens of thousands in one area and several hundred dollars in others. If you search for a home site that puts you further out in the country, you can expect to have a septic sewer system.
Septic Systems
Never Buy a parcel of land until you receive septic approval. Without septic approval you will not have the ability to build. The first thing to do is contact your Environmental Health Department and tell them your PIN and ask them if you can expect to receive septic approval for your target property. If he cannot guarantee septic approval, then you will have to either ask the owner of the property if he is willing have a perc test performed or share the expense. A perc test is a soil analysis to determine whether or not a property has suitable soil for the filtration of liquid waste water. It can also determine the type and cost of a system if septic approval is granted. Also, you should contact a minimum of two state licensed septic tank installers. You can receive a lot of information regarding the size and the estimated costs of a septic system based on the soil test and number of bedrooms you propose to build. Their experiences in your general area will provide the answers you seek. Keep in mind, sandy soil conditions are conducive to lower septic system costs. Lime rock, clay and high water tables, to name a few, will cause your budget to spiral out of control. Knowing ahead of time what to expect is key when budgeting your money for land improvements.
Water wells
When you choose to live in an area outside of town you may be required to have a well drilled. It is advisable to contact a minimum of two drillers. You will want them to give you information on the well depth averages for your general area of interest. An experienced driller will be the best source to gain an idea of well depths for your target areas. You wouldn't want to purchase a piece of property and later find out that your well depths are approaching 500 feet. An experienced well driller can also be a source of keeping you abreast of the quality of drinking (potable) water in and around your area. If the expected well depths are exceedingly deep, its best to look elsewhere, even if its your first chosen property. If the well water for your first choice property has a significant chance of having lime or sulfur, expect high maintenance costs especially sulfur and avoid the stench and ongoing costs. A well driller will be able to give you information on water quality in your area. Its better to move on to your next favorite choice of properties with just a hint that your water could be tainted. Also, you can check with the jurisdictional water management. They can also give you vital information regarding water quality and depths of wells.
Power Companies
You will need to locate and contact your potential power (electrical) company.
It is imperative that you are certain that electricity to your new home is attainable. Even if you get the green light, additional expenses to accessing power to your home from a distant transformer or even across the road can run into the thousands. So ask whether additional costs may occur. If you cannot get a definite answer, ask them to come out and visit your site and meet them in person.
Cable, Phones (land line or cellular) and internet
You must to seek out these utility providers for your target areas. None, some or all of these utilities may be available. With some investigation, you'll be able to determine which of them you can or cannot live without.
Survey
Its extremely important to know your property boundaries. If you are mortgaging land, a survey will likely be required by your lender. It would be a disaster to learn you purchased a parcel of land and find out down the road you aren't on the right property. A well drawn up survey should indicate any flood planes, easements and contour lines dividing buildable and non-buildable areas on your lot. To add to that, a clearly surveyed lot will act as a guide for you to conform to any setback guidelines required by the county, utility companies, city or other jurisdictions. It will also enable you to determine if a neighbor is encroaching your property with buildings, fence lines or junk cars, etc.
I hope this article will enable you to seek, select and purchase quality property effectively and save you thousands of dollars and a lot of wasted time in the process. You are now armed with information and food-for-thought, providing you with the tools necessary for searching and choosing that perfect piece of land you will soon call home.
I have been permitting and coordinating land developing projects for the past eleven years. Averaging between 150-200 projects annually. I have come across land buyers that have selected properties without proper research. The result, panic stricken customers wondering how this could happen and scrambling to secure additional funds to feed unforseen costs. Not much can go wrong that I haven't seen. Unfortunately, by the time I meet the customer, they have already purchased land.
In an attempt to educate the land buyer, I authored the ebook Wise Acres Guidebook to Buying Land on a Tight Budget. My book gives practical advice on purchasing land on a budget and many tips on developing land.
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