If you were to describe your dream home, what would it include? You might picture an intimate cabin in the countryside, a cozy home in the suburbs, or perhaps an expansive mansion with a scenic view. For those with creative minds, the never-ending quest to seek out and experience the exceptional can mean difficulties in finding an existing home that fits your vision. If you want a home that “has it all”, your best bet is going to be starting from scratch. Vacant land is a blank canvas where almost anything is possible- given a large enough budget. Expansive floorplans, custom touches, and premium materials all come together to make the dream house in your mind a reality you can actually call home. Finding the right property can make those fantasies come true. Whether it’s a plot in a new development, a spot out in the woods, or an empty lot in an existing neighborhood- there are some big considerations to keep in mind.
Top Tips for Buying Vacant Land
Work with Qualified Professionals – While you should always seek trustworthy and experienced professionals anytime you’re getting involved in real estate, it is especially important in these circumstances. From researching the lot and purchasing it, to the contractor planning and eventually building the structure, you’ll need a team to help you reach your goals, on time and in-budget.
Not all Properties are Created Equally – Much as you would compare and contrast the location of existing homes, do the same with vacant land too. Consider where the property is located- proximity to work and school, availability to shopping and restaurants, geographic features like a river or scenic view. Choosing a lot in an underdeveloped location might mean a lower buying price- but you can’t guarantee the future of that area. Your quiet street today could become a busy thoroughfare a few years from now. Dream homes are a long term commitment, so be sure to keep that in mind when deciding “where”.
Do Some Research – Know what you’re buying, long before placing an offer. Conduct surveys and environmental testing to better know the ins and outs of the property. Inquire about legal and technical limitations of the land as well- easements, zoning restrictions, and utility hookups and availability may be deciding factors between two locations. Taking the time preemptively can help you avoid being stuck with a piece of land that doesn’t match your expectations and fit your needs.
Expect to pay Cash – Finding a lender to finance a vacant lot purchase can be difficult. Land loans, on top of being hard to find, may also not be very attractive options: they can often require very high down payments, unfavorable rates, and terms that may not suit your preferences. You’ll also need to consider the cost to build your home- another expense which will likely need to be made with cash.
Build reasonably – Homes aren’t built in a vacuum, and there’s a reason that neighborhoods often contain similar homes to one another. Compare other nearby properties as you choose a property that suits your tastes. You don’t want to build a mansion in a tight-knit neighborhood of small, affordable houses- the long term value of your investment will struggle. At the same time, keep in mind that larger properties will incur higher taxes, even if you build a modest home on it.
Make sure your “dream home” comes true by selecting the right piece of land to build it on. Before you get carried away with the excitement of getting to design your own home from scratch, take the time to do a little research- planning goes a long way in making things go smoothly. The right piece of land will mean a happy home- whether you’re planning to live there, or use it as a vacation or rental property.
