If you’re looking to buy a house in the near future, you might find that securing a property has become very hard in the last year. With so much more demand than there is supply, purchasing a home that’s already been built can take much longer than it has in the past due to being able to find the right home and getting your offer accepted among all the competition.
Because of this, many people are looking into the option of purchasing a piece of land that they can build their own home on. However, this route comes with some potential hurdles of its own. So to help you in figuring all of this out for yourself, here are three things to consider before buying a plot of land to build on.
What Will It Take To Develop The Land?
One of the first things you should consider about the land, apart from the fact of whether or not you’d like to live in that location, is what it will take for you to develop that piece of land into something liveable.
According to HGTV.com, developing land can include things like establishing access to utilities like water and power. You will also need to consider things like paving a driveway and creating some kind of yard. All of these things can be costly if they’re complicated, so it’s wise to try to pick a piece of property that’s going to make this process a little easier on you.
Get The Right Reports And Surveys Done
After you’ve found the spot that you think is right to build your home, you should then dig a little deeper into the property by getting some reports and surveys done. In some instances, this may have already been done for the property. But if it’s been a few years, you may want to get new information so you can make the most informed decisions.
In these reports and surveys, Devon Thorsby, a contributor to the U.S. News and World Report, shares that you should get environmental testing done on the soil, check the condition of the soil for building a foundation on, survey the exact property lines, and more.
You’ll Likely Pay Cash For The Land
As you prepare for financing the purchase of land and the building of your home, Elizabeth Weintraub, a contributor to The Balance, shares that you shouldn’t expect to get a loan for purchasing the actual land. Usually, this will have to be paid for in cash by you.
For the building of your home, it’s much easier to get a construction loan so that you’re not footing the entire bill yourself at the outset of everything.
If building a home is starting to make more sense to you than buying, consider using the tips mentioned above to help you get going on this adventure.