More tips on land buying

Benefits to Buying Land

The further away from the city, the cheaper the acreage.As for agricultural land away from the city,its a different story.Many people buy land because they want to build a custom home to their own specifications.They also want clean air quality and more space.Some even prefer their own land for farming,gardening and rearing livestocks.If you concerned about the environment ,wide open areas without trees shading the house are perfect settings in which to install solar panels.

Drawbacks to Buying Land

Finding skilled craftsman willing to travel might be difficult.Some might not show up as promised and may want higher wages to compensate for the distance.Transporting building materials and paying for delivery will likely cost more over building a home in the city.

Although modern conveniences are available, they aren't always reliable in the middle of nowhere, which is why many home owners in the country use generators as a back up when utilities fail. Going into town for groceries and other shopping needs generally requires planning and long trips. If it snows, and the roads aren't promptly plowed, you could be snowed in for days.

Renting Before Buying Land

If you are unfamiliar with an area, it might be a good idea to rent a home first before buying the land and beginning construction. As a new resident, you can get to know the community first hand and hear stories from local owners.

Resale value is often softer in the country than the city.If demand is low and supply is high, home prices will be more negotiable. As a tenant, you can try to time the real estate market and be ready to buy that parcel of land when it first becomes available.

Factors to Consider Before Buying Land

* Zoning Requirements

Check with local authorities either city, county or state to determine zoning ordinances and whether you can build the type of home you want before committing to buying the land.Ask about future zoning, whether there are plans to build cities,shopping centers or airports which will increase the land value or conversely.

* Smells and Sounds

In cities, There is gas smell and noisy sound from vehicles and busy cities.On the other hand,there is odors and sounds from animals if there are farms nearby such as pig farms and other farms for live stocks.

* Natural Hazards

Obtain a natural hazard disclosure and look for soil problems. A disclosure will tell you if the land is a protected habitat, which would prohibit building. Is the area a known fire hazard? Is the fire department supported solely by volunteers? Many owners in the country maintain private ponds for fire emergencies.

* Elevation

If the land is located near hills, how likely is the land to move? Some slab foundations can crack if the land is unstable. Find out if your parcel lies within the path of a potential landslide. For construction near bodies of water, you might want to consider building a raised foundation and make sure to buy flood insurance. If the land was once a swamp, ask neighbors about the condition of their foundations.

* Easements

If access to your land is provided by driving across an adjoining parcel, you should obtain an easement and make sure it is recorded. Find out who maintains the roads and what your prorata share might cost for upkeep. What rights do neighbors have to cross your land? Are the boundaries clearly marked? Obtain title insurance, which will disclose easements and restrictive covenants or conditions. You might want to order a survey of the land.

* Utilities

Water is important. Not all water is potable. Sometimes water rights don't "run with the land," which would mean you could not dig a well. Find out the depth of your water table and determine the difficulty of digging. Is the ground mostly rock? It can be costly to bring electricity, telephone or cable services to the property if they are not already established nearby. Will you need to install a propane tank? Consider a generator for back-up during power outages. If you cannot hook up to a sewer, what will it cost to install a septic system?

* Appraisal

It's common to pay cash for land. If you're not planning to finance the land purchase through a conventional lender, which will require a lender appraisal, then obtain your own appraisal to determine an appropriate price before making an offer. Comparable sales are sometimes difficult to find when buying land.

Tips on land buying

Evaluate Land Parcels Objectively

Buying a parcel of land can be a serious investment and it’s always a good idea to consult a financial advisor,accountant or experienced personal such as agents before making any investment. Determine what your goals are for purchasing.Are you buying for yourself?family or investment?What are the minimum requirement?The following are some of the other factors to consider when evaluating parcels of land.

Location, location, location

Many buyers prefer to be close to schools, shops, banks, post office,hospital/clinic for emergencines ,cinemas/shopping malls for entertainment and easy highway access to the city. So, Aparrently, land that’s close to amenities will command a premium.

Moreover, builders may charge you more to build on remote parcels of land.You may also consider access to electricity,water, telephone utilities and internet service.

Find out about homeowner’s fees. Do mandatory fees apply to your plot of land? If so, you’ll have to pay them. If you don’t, the homeowners’ association could put a lien on your property or even foreclose on it.

Building challenges and obstructions

For most people, the most critical question to answer before purchasing land is: can you build on it? If the land can’t support a foundation, or has no access to a sewage system, it may not have development potential.Some lands previously were mining ares.Checked with the authorities for the land report.

Research the soil topography and quality. Damp, moist soil, steep slopes ,hills all increase the cost of building the house.

Finally, research road access. Consider the likelihood of natural disasters such floods, heavy rain, or snow that could limit road access in the future. Maintain the road with your local authorities or neighbourhood if its not accessable through public road.

Zoning and environmental considerations.

Once you’ve determined that you can build on the land, research zoning. If the local zoning ordinances dictate that you can’t build on the land, or your land borders water and is subject to environmental regulations, both may hinder your building plans.

Next, research the county’s long-range plans. Find out where the new businesses,shops, parks, roads, or schools will be that will affect the resale value in future.


Secure Land Parcel Financing

Once you find the land of your dreams, it’s likely that you’ll need to secure financing. While financing for land can be more difficult to locate than that for an existing home, there may be other options.

*Local, savings, and community banks: Loan officers at these locations know the area and possibly even your specific parcel of land. Note that you’ll have a better chance of securing a loan if there are other improved properties, or brand new properties, in the same area.
*Traditional seller loans: Typical seller loans generally require a 20% down payment, with the seller holding a note for the balance. The interest rate and terms of the loan, however, are negotiable. Other factors that impact the final terms of the loan include: the location, size, zoning, and intended use of the parcel.

Choose a loan package that adequately covers both the cost of the land and the cost and complexity of building and construction. Be sure to factor in the cost of liability and homeowner’s insurance when opting for a financing package.

Of course, real estate investments can be a complicated matter, so you should be sure to also consult a tax professional.


Find Land

Once you know what type of land you want, go to the Real Estate portal, Else look for newspaper Real Estate section or get any help from local rel estate companies.They would provide agents for you.


Buy Land With Confidence

Finally,you should conduct your own due diligence into all aspects of a real estate purchase and depending on your situation; you should get assistance from experts, including a licensed real estate broker, a property inspector, title/escrow company, attorney, and/or financial advisor.
You may need to take note on below issues too.

* Price: Am I bidding on the full price of the parcel, or am I bidding on a down payment?
* Title: Is the title clear; that is, free of liens, easements, and other encumbrances? If the title isn’t clear, what are the easements on the property?
*Insurance: Can I get title insurance at my own expense?
*CCRs: Are there any covenants, codes, and restrictions on the property?
*Deed: What type of deed will I be getting?