Whether you yearn for the peaceful expanse of rural acres, a tiny home nestled in a secluded spot, or a buildable lot in the heart of the city, buying land can be an affordable pathway to homeownership if approached with care and preparation.
Buying land, however, is a different and often more complex process than purchasing an existing home. Understanding how to navigate this journey can help you determine if it's the right path for you. Before making any decisions, consider these crucial questions:
1. How will zoning rules impact your long-term plans for the property?
Each piece of land is zoned for a specific use, such as residential, agricultural, or commercial, and local counties or cities establish the zoning regulations. Understanding these rules is essential to determine if you can build what you desire on the property. Research the zoning maps and property information on the local department's website. Additionally, check the "general use" plan to understand future plans that could affect the property's value or your enjoyment.
2. Are there deed restrictions governing the land's use?
Deed restrictions are often imposed by homeowners' associations (HOAs) and may cover various aspects, such as parking, fences, pets, home-based businesses, and RV usage. Obtain a copy of the Covenants, Conditions, and Restrictions (CC&Rs) from the HOA or consult a real estate lawyer to understand these limitations.
3. Can you build on the land?
Consider potential obstacles to building, such as hazards like landslides, flood zone designations (which may require flood insurance), environmentally sensitive areas, topography, and building setbacks. Conduct a soil test to determine the land's suitability for a foundation and building purposes.
4. Does the land have easy access?
Ensure there is a right-of-way easement in writing if the land has no direct road access. Without it, the property may be considered landlocked and could diminish its value and usability.
5. Are utilities available on the property?
Check whether utilities like water, sewer, gas, and electricity are already present or if you'll need to install them. Rural areas may require additional efforts and costs to connect to utilities.
6. Does the land have reliable internet access?
Consider your need for high-speed and dependable internet, especially for work-from-home situations, and explore available solutions.
7. How will you purchase the land?
Not all lenders handle vacant land loans, so explore financing options carefully. Consider seller financing or consult local banks or credit unions. If you plan to build on the land, explore construction-to-permanent loan options.
Discovering and purchasing land can be a more challenging venture compared to buying an already-built home. Understanding the ins and outs of buying land is crucial in deciding if it's the right choice for you. While there are similarities with purchasing a home, purchasing land demands an extra level of careful consideration to ensure you acquire the perfect piece of your dream property. Reach out to Scott and the Smolen Team to discuss getting started!
