There are many reasons why you may be interested in purchasing land. Whether you are planning on building your own home or want to purchase a nearby piece of land for future use, an empty lot can come in handy. While purchasing a lot may seem like a straightforward process, there is more to purchasing land than you may realize. Here are a few things that you should be taking into consideration when looking at lots for sale.
Utilities And Road Access
The first thing that you should consider when looking at land for sale is whether or not you can even get to it. If there is no road access, building a home can be very difficult and expensive. Another thing to look for is whether or not utility hookups are already in place. Adding utilities to an empty lot will add to your budget. In some cases, it's necessary to add electricity and water hookups. It may also be necessary to put a septic system in place if there is no nearby sewer connection. Costs can range from $10,000 to $30,000 to hook up utilities.
Another thing to consider when purchasing a lot is financing. Financing a land purchase is different than getting a mortgage. The type of loan you will need will also depend on what you plan to use the land for. If you are planing on building a home immediately on the property you purchase, then a construction loan is likely going to be the best option for you. If you are not going to build immediately or do not ever plan on building, then a lot loan or a land loan will be the best option. These types of loans are harder to get and lenders often require down payments between 20 and 50 percent.
Land Survey Results
Another thing to consider when purchasing a lot is the land itself. Before purchasing, you need to get a land survey in order to know exactly what you are buying. A land survey will show you exactly where the property lines are and how large the parcel of land is. Getting a land survey can prevent future disputes with neighbors and will ensure that you are able to use your land for your intended purposes. The average cost of a land survey is between $373 and $499.
Purchasing a lot is different than purchasing a home. It's important to keep road access and utility access in mind when viewing land that you may purchase. The process of getting financing is also different and may require more cash upfront. It's also important to get a land survey before buying in order to know exactly how large the lot is and where your property line would be.Share