When it comes to finding the right home, location is very important. However, sometimes it is difficult or even impossible to find a home that works for your wants and needs in your desired location. The good news is that it is possible to buy land and then build a home that meets all of your requirements. However, buying vacant land and then building a home on it does come with some challenges. Here are three things that you should know before buying vacant land.
A Real Estate Agent Can Help
When you are searching for the right piece of land to build your new home, a real estate agent can be incredibly helpful. Look for a real estate agent who is experienced in vacant land sales. They can help you find land that will work for your needs. Things like zoning laws and utility hookups can be a challenge for those who have not purchased vacant land before. A real estate agent can help you find land where you will be able to build your home without any major challenges.
Financing Can Be Difficult
When it comes to buying land and building a home, obtaining financing may be a little more difficult than you expect. Lenders often view land purchases as more risky than mortgages. Getting financing to buy land that you plan to build on can be a challenge. With these types of loans often the loan terms are shorter, the lending limits tend to be lower, interest rates are often higher, and you may need to put down a larger down payment. Down payments between 30 and 50 percent of the total cost are not unusual with these types of loans.
Utility Connections Are Important
When buying piece of vacant land, determining whether or not there are nearby utility hookups is a must. Utilities typically include electricity and plumbing hookups. Unless you plan on building a home that is completely off the grid, utility hookups are essential. Adding utility hookups can be very expensive. In some instances if there are nearby utility hookups, the total cost may be just a few thousand dollars. However, typically it costs anywhere from $10,000 to $30,000 to add utility hookups to vacant land.
If you are buying vacant land, there are a few things that you should consider before making your purchase. First, a real estate agent can help you find the right piece of land for your needs. Financing can be a challenge and you may need to a larger down payment for this type of purchase. Utility connections are also something to look into. Adding utility hookups to vacant land can be very pricey.Share