Thursday, January 7, 2016

Best Tips to Buying a Land

If you’re planning to build a new home, selecting your site is as vital to the completed project as the design of the structure. For most of us, the appeal of a home comes not only from the building itself, but also from the surrounding environment and how the home is situated on the plot. A satisfying design always considers the aesthetics of the land and integrates with the environment in an organic way.



But the problem with a development is that you rarely have a green light in terms of what and how to build. You can expect to have to comply with restrictive covenants that will dictate many of your aesthetic choices, and there likely will be an architectural review committee in place that will limit your vision. Moreover, you’ll simply have less control in choosing your natural environment.

Choosing to build on land allows you to find a site that appeals to you in terms of its views and scenery, and gives you infinitely more leeway to make aesthetic choices in your design. The trade off is that with every freedom afforded by the land, you’re faced with potential challenges. Building on raw land is not simply a matter of picking a spot with a lovely view and plunking your home down on it. The good news, though, is that you can build on just about any spot, no matter how physically or logistically challenging — assuming your budget can meet these challenges.

The First Step

Many individuals searching for land for sale use a variety of methods to find available property, including scanning local newspapers and researching bank foreclosures, tax sales or evictions.
For most people, a real estate agent is the best source for identifying sites, especially when your search covers an area far away from your current residence. No matter how you look for an appropriate site, once you’ve identified some candidates, your primary allies are due diligence and common sense. You wouldn’t buy a car without actually seeing it or taking it for a test drive, and the same is true with the land. Plan to visit and walk over any property under consideration.
You should also plan to investigate adjoining properties. Imagine buying a plot of land without realizing you’re downwind from a commercial farm or landfill! In my own experience, an uncle owned one of the most beautiful and historic homes in the county — within hearing distance of an airport.

Agents and Attorneys



Aside from showing you what’s on the market, it’s the real estate agent’s responsibility to inform you of material facts, such as easements or highway improvements. An easement grants the right of someone other than the property owner to use a tract of land.

Another key ally in buying raw land is a real estate attorney. Legally speaking, you can do title searches yourself, but land records, overseen by the Registrar of Deeds in the county seat, can be extremely confusing. A real estate attorney is equipped to search and interpret titles, and many local attorneys actually have the transactions in their community memorized.

Moreover, attorneys will also have connections with title insurance companies, which insure you in the event of a defect or hindrance with your purchase.
An attorney is also vital, of course, in drawing up a contract. While there are standard forms dealing with the purchase of residential properties, an attorney will need to draft any contingencies that might be attached to the form. Examples of contingencies include the stipulation that a normal drain field for a sewer septic system is build-able on the land, or that road access to your property is feasible. If these contingencies are not met, you have a way out of your offer to buy.

Sewer and Water Issues

 

Before you can build a home, a health inspector will visit your site to conduct a perc test that will establish the land’s rate of drainage for purposes of a septic system. This will dictate where you can place your primary and repair drainage fields, or determine if you have to install a custom system, which can raise sewer septic costs by up to five times.

Without hiring someone to evaluate your property, you can do some things on your own to get a sense of the type of system the property can accommodate. It is by no means an immutable law, but it is a general rule that what your neighbour has, you’ll have. Ask neighbours about their sewer and water issues. Check to see what their living conditions are like in terms of the water table and flooding, and find out how deep they had to dig for their well.

Electricity


Electrical connection is generally more expensive than septic and water considerations. You might be able to connect to lines on an adjoining property, but your neighbour has the sole right to grant or deny an easement. Fortunately, utility companies will send an engineer to a property to calculate the installation expense based on distance and number of poles. It’s also worth asking the power company what expansion is planned and if they are willing to help subsidize installation in order to inspire future development. 

Road Access


Aside from having the title analyzed to be sure your property is not land-locked, you’ll need to do some research in terms of road access. Will a special road need to be built to bring in the equipment to dig a well? Will a forklift need to be brought in to lift the heavy? If so, you’ll need to factor in the cost of building one-time access, which might run into five figures.

You’ll also want to investigate potential expansion of public roads on or around your desired site. The state department of transportation’s engineering department can answer your questions about future development, since proposals are docketed years in advance.

Environmental Issues

 

Environmental regulation is another potential hindrance to where or how you can build. While beyond the scope of this article, be sure to ask your agent, attorney, neighbours, and regulatory government agencies about these concerns.


Happy Buying!

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