If you already own a piece of property you wish to build on, you are ahead of the game. If not, you can tie the purchase of a lot in with a construction loan to limit the number of closings for which you will have to pay. If you have a local realtor they can assist you in finding just the right piece of property through the Multiple Listing Service (MLS). If you do not have a realtor, we can help you find one. They will need to gather some information from you to aid in a lot search. Specifically, they will need to know in what areas you are interested in living, what size lot you are looking to purchase and about how much you are willing to spend on a lot. A good rule of thumb is that the lot should generally be no more than 20% of the total (appraised) value of the finished house and lot.
Things to consider when looking for a lot:
Location, Location, Location
It is generally best to build a home that will fit well with other homes in that area. Building too much house in a specific area can result in lower resale and appraised value. If you plan to build a small home or one that generally differs from the ones in the area, make sure there are no restrictions in place that will preclude you from building the house you want. Your realtor should be able to help you find this information.
•Why is this lot so cheap?
You can often find what appears to be a good deal on a lot only to discover later that maybe it was not the bargain you thought it was. This is because it can be expensive to bring a sloped or low lying lot up to buildable conditions. There may be large building setbacks, or recorded easements that could restrict building. Your best course of action in this instance is to ask us as your home builder. We are happy to assist you with such a situation, so please feel free to give us a call. We always recommend that you have us look at a prospective lot before you close your escrow, to avoid possible buildability issues down the road. Also keep in mind that good lots sell fast. If you find a property you really like, move on it fast. It may not still be available next week or tomorrow for that matter. Have your realtor place a contingency on the purchase that states you would like to have your builder inspect the lot prior to closing. If there is nothing wrong with the lot the owner should not object to this.
•Utilities
Ask the owner or realtor what utilities are readily available to the lot. Is it sewer or septic, what will be the water source, is there gas, is there cable service or will I have to buy a satellite dish?
Use our Lot Evaluation Worksheet to help you choose a lot.
Lot Evaluation Worksheet
