From: realestate.usnews.com
Finding your dream home isn’t easy. You’ll spend a lot of time scouring online listings, attending open houses and scoping out neighborhoods – and you may still come up empty-handed.
Maybe your dream home just doesn’t exist yet. In this case, building a home on a vacant piece of land may be the perfect option.
But before you get serious about laying a foundation, be aware that a land purchase may yield more surprises than buying a home – from easements and zoning restrictions to environmental conditions that could easily turn your dream build into a headache the size of a McMansion.
Whether you’re buying vacant land to build a home for your family or you hope to sell the plot for a profit in the future, follow these rules to avoid buyer’s remorse.
Here are the do’s and don’ts of buying vacant land:
- Do work with an agent to find the land.
- Do have your finances in order.
- Do consider the value of homes in the neighborhood.
- Do take utilities and road access into account.
- Do consider incentives.
- Don’t expect to get a loan.
- Don’t skip the environmental tests.
- Don’t forget the survey.
- Don’t talk to the neighbors.
- Don’t assume you can have property rezoned.
Key Takeaways:
- When purchasing vacant land, it’s important to hire a real estate agent who has experience negotiating land transactions.
- Most land deals are done in cash, so make sure you’re financially prepared before purchase.
- Consider access to running water, electricity and sewers, and don’t assume you can get the property rezoned.