What to know about buying Land ?

Question

Hi!

What are some resources that teach one the things to look out for when purchasing land to build on? What’s the process? I want to know step by step. Someone to say, “follow these steps and you won’t make a costly mistake” - Like:

1. Call listing agent (do I need an agent for myself) ?

2. Have land loan secured?

3. Call the county to learn more about restrictions?

4. Get quotes from local specialists for plumbing and electric? What to watch out for there?

That sort of stuff...

Thanks

Kate

Jerry Brown · Answer

@Kate C.Hi Kate. Check out Seth Williams at REtipster.com.  There is a lot of info there as well as on BP I’m sure.  Best of luck!

JerryB

Seth Williams · Answer

Hi @Kate C. - I'm not sure if links are allowed here these days, but this blog post really does speak to your question.

1. You don't need an agent to buy or sell land (I almost never use them), but depending on your level of comfort with the process, it might not hurt if you can find one who specializes in land transactions (hint: most agents deal with homes and dwellings, and these are not necessarily the most qualified people to advise you on vacant land transactions - as land deals have their own unique set of issues).

2. I'm not sure exactly what you're asking here, but most conventional lenders will only participate in a land deal if you have an immediate plan to develop it (which it sounds like you do).

3. Yep. I would check with the zoning and planning department to verify that your intended use is allowed, and won't come up against any local restrictions. This isn't the only factor that can affect the feasibility of your plans for the property, but it's a big one.

4. If it were me, I'd probably look for a good general contractor to help with this. If you're serious about building, you might want to find a local surveyor too. They can help you understand exactly where the boundaries of the property are and verify that there's enough room to build what you have in mind.

There can be other issues to watch out for too (wetlands, flood zones, perc test, access to utilities, the physical attributes of the land, etc), as I explain in the blog post mentioned above.