Tips for Buying Land
City dwellers often idealize what it is like to live on acreage outside the city limits. Before you decide to dump it all for that "simple country living" and buy land on which to build your dream home, consider these tips for buying land.
Benefits of Buying Land
Land is more affordable in rural areas. As a general ruale, the further away from the city you get, the cheaper the acreage becomes. Many people want to buy land because they dream of building a custom home to their own specifications. They also desire more space and cleaner air. Environmentally concerned buyers also have the ability to build using green building materials. For instance, areas with wide open spaces that don't have trees shading the house are perfect settings in which to install solar panels.
Land is a limited resource. As they say, they aren't making any more of it. For this reason, many people are buying land as an investment. With the population growing at a phenominal rate, land is quickly becoming more scarce and more expensive because the demand is increasing faster than ever before.
Drawbacks to Buying Land
It may be difficult to find skilled craftsman who are willing to travel. Some may want higher wages to compensate for the distance, while others might not show up as promised. Transporting the building materials and paying for delivery will likely cost more than if you were building a home in the city.
Modern conveniences may be available, but they are not always reliable in the middle of nowhere. For this reason, many rural home owners use generators as a back up when utilities fail. Long trips and planning are generally required when going into town for groceries and other shopping needs. Also be aware that severe weather can leave you stranded for days. If it snows and the roads aren't promptly plowed, or if a flash flood washes out the road, you could find yourself cut-off from civilization for a while.
Renting Before Buying Land
If you are planning on moving to a new area that you are unfamiliar with, consider renting a home and living in the area first before you buy the land and begin construction. As a new resident, you will be able to get to know the community first hand. You will likely hear stories and get information from local owners that you wouldn't have heard or gotten had you pulled into town in your never-been-off-road SUV with a fat wallet in your hand asking about property listings.
Since the pool of potential buyers is smaller in rural areas, resale value is often softer in the country than the city. Home prices will be more negotiable if demand is low and supply is high. As a renter, you have the ability to try and time the real estate market and be ready to buy that piece of land when it first becomes available.
Factors to Consider Before Buying Land
Zoning Requirements
Before you commit to buy the land, be sure to check with local city, county and state authorities to determine zoning ordinances and whether you can build the type of home you want. Inquire about future zoning, whether there are plans to put in airports or shopping centers, or to change nearby land uses that could also devalue your land.
Smells and Sounds
Be aware that you might be trading exhaust fumes from city cabs for the odors produced by pig farms. Some farm animals such as donkeys and geese produce brays and squawks that travel for miles. Horses and cattle along country roads drop steaming piles of waste. Trust me, nobody carries along a plastic bag and picks up after their livestock.
Natural Hazards
It is important that you obtain a natural hazard disclosure and check for soil problems. A disclosure will reveal if the land is a protected habitat, which would prohibit building, or if it has naturally occurring hazards like asbestos or uranium in the rocks and soil. Also find out if the area is a known fire hazard and if the fire department is supported solely by volunteers. Many owners in rural areas maintain private ponds for fire emergencies.
Elevation
If the land is located near hills, find out how likely the land is to move. If the land is unstable slab foundations can crack. Check if your parcel lies within the path of a potential landslide or an avalanch. If you are planning on building near a body of water, you might want to consider constructing a raised foundation and be certain to buy flood insurance. If the land was once a marsh, ask neighbors about the current condition of their foundations.
Easements
If the only access to your land is available by driving across an adjoining parcel, you need to obtain an easement and make certain it is recorded. Know who maintains the roads and what your proportional share for upkeep might cost. Find out what rights, if any, neighbors have to cross your land. Make sure property boundaries are clearly marked. Obtain title insurance, which will disclose restrictive covenants or conditions and easements. Getting a new boundary survey is nearly always a good idea, so you might want to order a survey of the land.
Utilities
Water is important, but not all water is suitable for drinking. Be aware that water rights don't always transfer with the land, which means you would not be able to dig a well. Find out the depth of your water table and determine the difficulty of digging. Is the ground mostly soil or rock? Realize that if electricity, telephone, or cable services are not already established nearby, it can be costly to bring them to the property. Decide if you will need to install a propane tank and consider buying a generator for back-up during power outages. If you are unable to hook up to a sewer system, find out if you will be able to install a septic system rated for the number of bedrooms you require and how much it will cost to install.
Appraisal
It's a very common practice to pay cash for land. So if you are one of the many people who do not plan on financing your land purchase through a conventional lender, which would require a lender appraisal, then you would be wise to obtain your own independent appraisal to help determine an appropriate price before making an offer. Be aware that when buying land, comparable sales are sometimes difficult to find.
Hopefully these tips for buying land will help you find and buy that perfect piece of land for you.
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