Observing the Build

If you haven't found a property that meets your needs, building a custom home is an excellent alternative to ensure your new space has everything you need. Before you can start construction on your new home, you'll need land to build on. Here are a few guidelines to follow when purchasing a lot of land for your custom home. 

1. Look for Land in an Area with Similar Homes

When searching for potential lots, you want to make sure that the homes in the area are comparable to the home you want to build. Otherwise, you risk your new home being the most expensive home in the area, and this often makes it difficult to obtain loan approval or secure a fair market price if you ever need to sell it. 

2. Have a Plan for Paying for the Land

While there are loans available for individuals who need to finance the cost of their land purchase, these loans usually have stringent lending requirements. You'll need to have a strong credit score and cash to assist with paying for the purchase.

It's not uncommon for lenders to only lend half or even less than half of the cost of a lot. If you're ready to immediately begin constructing your home, search for a lender that offers an all-in-one product that includes the cost of your lot and construction expenses for your home. 

3. Test and Inspect Any Potential Lots

Before you close the deal, conduct a little research to ensure the lot is everything you expect it to be. Have the lot surveyed so that you know exactly where the boundaries are. If any neighbors are intentionally or unintentionally using part of the lot, you want to settle this issue before buying the lot. 

Check that the land is environmentally sound. Depending on its location and the former inhabitant, a lot may have contaminated soil or have a high potential of flooding. Any issues with the lot can impact your ability to build on it and the selling price. 

4. Inquire About Local Laws Governing the Lot

See if the lot is zoned for a specific type of usage, and confirm that the zoning is in line with your plans for using the land. For example, if you want to build a custom home that includes a small farm, check that the zoning laws don't prohibit the number of animals that you're allowed to own. 

While it's possible to request an exception, this is usually a long, tedious process with a low likelihood of success. It's usually easier to find a more suitable lot for your needs. 

For more information about lots for sale, contact a local real estate office.