Home Buying Tips: Finding a Plot of Land to Build a New Home
Monday, August 10th, 2009If you have your eyes set on a plot of land or a vacant lot, there are five contingencies to investigate before jumping into the investment. Although, the land may seem like the ultimate location for building your dream home, researching any stipulations, now can prevent tomorrow’s headaches and unforeseen expenditures. Research the following information:
Deeded restrictions
Contact the local municipality to determine if there are any building limitations or restrictive covenants. Certain property deed restrictions prohibit specific home floor plans, house size limitations or specific structure limitations. For example, some counties do not allow a mobile home or modular home from being moved or developed on the land.
Infrastructure
Determine if the plot of land has the necessary infrastructure to build your home. If water, electricity, sewage, telecommunications (phone/internet service) or cable/satellite television is not in place, adding these infrastructures could inflate the overall cost of building your new home. Be sure to research any contingencies, which may hinder the development of the property. For instance, some towns have well water restrictions, a serious setback if you’re planning to build a home on the plot.
Public Road Roads
Research the public road system. There should also be a deeded right-of-way, allowing the right to build a public road or accessibility to the land. Make sure that a road maintenance policy requires the community to contribute to the repair and upkeep of the road; otherwise, a private road can eat into your housing budget.
Environmental Hazards
Investigate the history of the property. A plot of land that was once an Indian burial ground, a land mine or a plot where toxic waste was once stored could pose future building and safety biohazards.
Financing
Prior to purchasing that plot of land for your new home, apply for a construction loan. Some lending institutions require a land survey.
Whatever you do before agreeing to buy a plot of land, be sure to do the homework to determine if there are any additional costs or restrictions.
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