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!
