Hey everyone! I’m back with another weekly video to help you with all things real estate. Today I want to talk with you about buying raw land. This process is a bit different than if you were to go out and purchase an existing home. If this is something you want to know more about, then check out this short video and blog post. Alright, let’s get to it!
One of the first things you’ll need to do is to research what kind of area the land is located on. Find out if this lot is in a brand-new subdivision, is it an older lot in an established neighborhood, or maybe it’s just open land out in the country. You also might want to question why it’s still vacant. The reason for this isn’t necessarily good or bad, but it is important to know. Having a clearer picture of the land’s location will help you decide if your project is a good fit.
Be aware of any surveys, easements, or building setbacks associated with the land you’re interested in. Basically, these are restrictive covenants that dictate what you may or may not do with the property. If your plans are not allowed by these deed restrictions, then you’ll want to know ahead of time so that you can adjust accordingly.
Ok, on to step three. Now that you are ready to purchase the land, you’ll need financing for it. Are you going to pay cash or do you need to obtain a loan? Getting a loan for land is a lot different than getting a home loan. A lot of times you’ll need to put more money down in a land loan as opposed to a house loan.
When you’re getting your financing arranged, you will definitely want to consider additional expenses you’ll incur to get access to the property. If it’s in a rural area or doesn’t have accessible roads, it may cost you more to get utilities such as water, electric, and trash removal set up at the property. Knowing these things ahead of time can help you plan appropriately and avoid unexpected expenses down the line.
Finally, familiarize yourself with the surrounding areas. It’s important to make sure your project will be a similar fit with the neighborhoods close to it. For example, if your building plans are drastically higher or lower in value then the other houses, it might not be a good idea to build there. It also might be more difficult to get financing for your project.
You’ve heard the old saying “measure twice, cut once” right? Buying raw land is a lot like that. It will save you lots of hassle if you do a little research and planning upfront. Remember, you don’t have to go it alone! A real estate expert, like the Clayton Collins Team can guide you through this process step by step. We have all the tools to help you get your raw land smoothly and efficiently. Give us a call today!