Frequently Asked Questions
What to do when you're ready to buy land.
Why should I consider buying land instead of a pre-built home?
Buying land offers flexibility to build a property tailored to your preferences. It also allows you to invest in locations where pre-built homes might not be ideal for your needs.
What should I check before buying land?
Make sure to verify zoning restrictions, land boundaries, accessibility, utilities availability (electricity, water, etc.), and any legal issues like liens. Also, will it meet your uses in its current state. Consider the expected cost to get the property to the functionality you are intending.
How do I check if land is zoned for my intended use?
Contact the local zoning office or municipality and review the zoning codes to ensure the land can be used for your intended purpose, whether residential, commercial, or agricultural. You can also look online for current tax records for most properties.
Do I need to be concerned about flood zones?
Be aware of the flood zones in the area.
What utilities should I confirm are available?
Check for access to water, electricity, sewage, septic tank, Internet, and gas lines. If these aren't available, you’ll need alternate solutions, which could increase costs.
Does the property need to undergo percolation testing?
This test determines if the soil is suitable for a septic system, which is essential for managing wastewater in rural or undeveloped areas.
Are there government permits required after purchasing land?
Yes, you may need permits for construction, environmental clearance, and utilities installation. This can vary greatly by area. Research these requirements beforehand to avoid surprises.
What are the ongoing costs of owning land?
Land ownership comes with expenses such as property taxes, insurance, and potential maintenance like clearing vegetation, keeping the land accessible, or road maintenance.
What should I ensure if my property lacks public road access?
If your property does not have public road access, it is crucial to secure an easement along an existing roadway. An easement ensures that you have legal access to your property, which is often necessary for daily use and can effect property value.
Additionally, the easement should be covered under your title policy to protect your rights legally. Without secured access in place, you may face difficulties obtaining financing as lenders often hesitate to approve loans for properties without guaranteed access.
How much of a downpayment do I need?
Typically, 20% is required. The minimum is 15%, plus closing costs.
