It’s fun to picture your dream home. Living somewhere that has privacy, gorgeous views, while still being close to great amenities. Is this really achievable?
Most people don't know where to start. Well, we are here to tell you that Building on your dream lot is what we specialize in, and we can make your dreams a reality. The first step is to find the right lot. We are going to discuss three major things you need to know in order to make the right decision for you when purchasing land.
How to Buy Land
Step 1: Finding the right Agent
To find the right lot, we highly recommend using a Real Estate Agent. There are Agents that specialize in Land Purchases and New Home Builds. With our experience, we have plenty of recommendations. Having an agent that you trust is crucial because they can:
Show you lots before they even hit the market.
Help you get a fair market price. This doesn’t just include the purchase price. Homeowners need to consider lot prep expenses into their purchase and negotiations.
There is a lot of paperwork involved when purchasing land and even more fine print. Agents can help you through all of this and talk you through how to protect yourself through unexpected surprises.
Step 2: Open Builder Lot or Builder Owned?
Not all lots are open to all builders. Many lots in an established neighborhood are often owned by a builder and you typically have to build your home with them. So if you want your choice in which builder you use, you need to find an open Builder Lot (aka Offsite Lot).
Most real estate agents who specialize in land and new construction have a good pulse on open builder lots available.
Signs that say “for sale by owner” are good ones to call on.
Farmland for sale can also be an option. Although it takes some work to rezone land for residential use, It could be a great investment. You could also subdivide the land and sell the other lots as an investment opportunity.
Don't forget Tear-downs! It’s tough to think of paying money for something just to tear it down, but you need to consider the market value of the surrounding homes. Many times, especially on a lake or near a city, this is your only option to get the location you want.
Step 3: Understanding Lot Conditions
It’s important to have your builder take a look at your lot prior to purchasing land. Your builder/land specialist will be able to take an initial look at your lot to give you some estimated expenses to consider. Here is a checklist that we go over when reviewing a lot for an offsite build.
When considering your total budget for your new construction build, understand that aside from your lot purchase price and the cost of your home, you will be spending an average of $30k-$75k on lot prep.
Whether you already own a lot or are just getting started, we would love to help you gain a complete understanding of what you are getting into, so that you can be included more fully in the building process and we can start planning your future Dream home.
Check out some other blogs that we have about buying the perfect lot. Please contact us for any other questions you may have. We are here to guide you on this journey.