Buying a lot for a new construction gives you the freedom to design your dream home in almost any neighborhood you want. Unfortunately, if you do not ask the right questions when searching for a lot, you could end up with land that does not meet your needs. To help ensure you get the best lot possible, here are some questions you should ask.
What Is the Future of the Neighborhood?
If you are buying a lot in a soon-to-be developed neighborhood, the temptation to be one of the first owners could be high. However, you have to think about what the future of the neighborhood is before making a final decision. Otherwise, you could regret your decision.
For instance, you need to know if there are plans for any major commercial projects nearby. Are there railroad tracks near your lot? Will there be coding restrictions that would prevent a neighbor from building a mini race track in his or her backyard?
What Are the Development Costs?
There are several fees that can be included in a developer's estimate of how much it will cost to ensure the land is fit for construction. In addition to the fees to the developer, you also have to factor in permits and local licensing fees.
When reviewing the estimate for the development costs, pay close attention to the fees associated with the survey, utilities, paving, landscaping, and legal fees. Legal fees can include the title search and other fees related to closing on the lot. You also need to know if any soil work, such as excavation, is needed.
Can You Get an Appraisal?
If you are financing the purchase of the lot through a lender, the lender will require you to obtain an appraisal to determine the true value of the lot. However, if you are paying for it yourself, you have to request the appraisal.
An appraisal can not only tell you the value of the lot, but also keep you from overpaying for the land. It is important to note, that finding comparables for the appraisal can sometimes be challenging. As a result, the appraisal might not be as detailed as one generated for a home. However, it is necessary to get one to help guide your offer.
Talk to a realtor like Sweger Development about other ways you can protect yourself when buying a lot. He or she can help you find the answers to these questions and many more that you might have as you do more research about buying a lot.Share