Purchasing A Lot To Build A Custom Home On
Everyone knows the importance of having their own house. If you want to build a custom home, you need to decide where and how to purchase a lot. There are many options available in the market; you need to keep an eye out for the best ones.
For the common man, a good location and price tag is enough to make a purchase. This is not the way it should be. There is so much more to a good home than the location only. To make sure your land is buildable and durable, make a checklist of the following 6 things.
6 Considerations before Purchasing a Lot to Build a Custom Home On
1. Check Available Land for Sale
You might have something in mind for your custom home. Even if you have not done proper research, you must have a vague idea of where you want to buy land and build a house. Make a list of available land for sale in the area of your interest. The best idea is to go ahead and check neighboring areas too. The more options you have, the better.
Many websites show available land. You can visit areas in person and also check online. Once you have decided which lot interests you, don’t go ahead and buy it. There is still a lot of work left.
2. Soil Report
What is your house going to be built on? Yes, the land. The soil is one of the most important considerations as your entire house will be standing on it. If the soil is not good, the foundation will not be strong. This in turn will be very dangerous as a foundation will not be able to take the load of the house.
One of the biggest issues buyers face when they want to build a house on land is soil condition and type. A soil test should be mandatory before you go ahead and lock the deal. The worst nightmare is when you start building and end up hitting the water. No one would want that, would they?
3. Zoning
Sometimes, people are so happy to get there on the perfect plot of land, that they forget other considerations. Don't go for appearances. It is important to check the cost and time that is associated with different zoning.
Plots that are not up to the mark are not being reported. It becomes a cycle. A person buys a plot only to find that the land was not buildable. He/she then sells it again. Another person buys it, and the cycle continues again! One of the first things to do is to check the soil and then the zoning considerations in the area. Most people are not aware of this aspect of purchasing a lot. For this, you can talk to a real estate agent.
4. Financing
Now that you are done with land selection, soil testing and zoning options, it is time to make a purchase. For this, you need a lot of finances. You are not only going to buy land but have to build on your lot too. For this, a lot of money is required. Getting a loan is very different from getting a mortgage. There are two scenarios:
· You can buy land and construct your custom home on it after a few years.
· You can buy land and start construction right away.
Getting a land-only loan is not easy. For the lenders, they can't place a number value on raw land. The interest rate they offer is higher and the loan terms are shorter. This is why most buyers don't go for land-only loans. Mostly pay in cash and get building loans for building the house.
If you want to save yourself from all the hassle, you can hire a builder to buy land for you. The biggest advantage is that your property will come zoned, subdivided and buildable.
5. Cost of Adding Utilities
Utilities are managed and provided by the county. If you are in a rural setup, you might need to install all the utilities like natural gas, electricity and water. You will need a septic system and a tank. You will have to install running electricity lights also. For this, an experienced real estate person is needed.
6. Get Quotes
Lastly, get quotes from local home builders to build your custom home. When you are thinking to build a house on the land, it needs to be perfect. Getting your hands on a perfect lot to end up with a badly constructed house is of no use. So, contact multiple builders and get quotes on your house.
As you can see, finding land to build your custom home on is not a very easy task. Our guide can help make the process easier for you!