Things to Remember When Purchasing Vacant Land

Amber RandhawaHomeowner and Homebuyer Tips

Photo Credit: Benjamin Davies @daviesben33

Not all buyers are looking for the perfect newly constructed home, or just the right pre-loved home in an active neighborhood. Some buyers already have the exact dream home for them in mind, and they know that the only way to achieve their dream is to start from scratch by building a home to their exact specifications on a newly purchased piece of vacant land. If this sounds like you, then you are a different type of home buyer with different concerns and needs. Purchasing a vacant lot is a bit different from the process of shopping for a home. Here are some things to keep in mind when you are in the market for the perfect location to build rather than buy your dream home.


Yes, You Still Need a Real Estate Agent

Just because there is no home on the property, it does not mean that you do not need the services of a real estate agent when making your land purchase. This is still a sale of property, and you need the expertise you can only get by working with a real estate professional. Your real estate agent will help you navigate all of the important details of the negotiation process and the due diligence necessary for closing on your new land.

Consider Your Full Financial Picture

Purchasing land on which to build your dream home is as major a life decision as purchasing a home that has already been built, and you need to make sure you are in the right financial situation before you take this leap. Not only do you need to make sure that you are able to afford the land and that it easily fits into your plans for using it, buy you also need to think about how much you will have leftover to spend on building your home. After all, you likely do not want to wait very long after purchasing vacant land before you begin to build something on it.

One important factor to consider when you are purchasing land, is that it is more common for land purchases to be made in cash, more so than when you are purchasing a house. This is because mortgage lenders are often less inclined to extend loans for the purchase of undeveloped land. That doesn’t mean it will be impossible for you to get a loan to purchase the plot of land that you have your eye on, but you should be aware that the process may be somewhat more difficult and complicated than times in the past when you have secured a mortgage loan to purchase a home.

Familiarize Yourself with the Surrounding Area

Photo Credit: Leah James

When you find the piece of undisturbed land that looks perfect for your dream home, its important that you don’t take too narrow of a view when you visualize how things will look when your home is built. Even if you are purchasing a piece of land on an an empty road in a rural area, you should still drive around and take a close look at what your surroundings will be once you move in. Even if there are no other homes around, make sure that your dream home will fit in nicely with the surrounding landscape. If there are other homes nearby, you should be aware of the styles and sizes in the neighborhood so that whatever you have planned doesn’t stick out like a sore thumb. If you are planning to build a large custom home, it might feel out of place if other properties in the area are more humble in size. This isn’t just about appearances – if your home is out of place, it could mean a devaluation later when it comes time to sell.


Utility and Road Access

Photo Credit: Alex Grodkiewicz @agdayton

If you are looking at undeveloped land in a rural area, such as in the North Georgia mountains, do your research before you fall in love with any specific piece of land. You want to make sure you understand which utilities are already available on the parcel, and what the process will be for any that are not yet in reach. If it will be an expensive and difficult struggle to get running water, internet service and electricity to a home that you build on the land, then this might not be the ideal location for you to build your dream home. You certainly don’t want to spend half of your home building budget just getting your utilities established. Believe it or not, this is something that is often overlooked when people purchase land, assuming that all the comforts of home they are used to in the city will be readily available everywhere.

In addition to utilities, you will need to make sure that the road access to the property is sufficient for the equipment that will be needed to build your dream home. If you are looking at a particularly large parcel of land, you also have to decide where on the land would be the most sensible place to situate your home. Depending on the amount of land you are buying and where on the land you will be building, you may need to install an actual road to your new home rather than simply a driveway. These are major expenses that can really tack on a lot to the budget you have established for building your dream home.


Environmental Tests

A standard part of the home buying process when you are purchasing an already constructed home is the home inspection. Similarly. when you are purchasing land, you should have environmental testing done as part of your due diligence background research before you complete your purchase. Before you begin building your dream home, it is important to make sure you know that the land on which it will sit is healthy and useful for development in the way that you have in mind. 

What exactly does an environmental test do? For starters, it will give you insight into the condition of the soil to know if it is safe for a home to be built there. The test will check for contaminants in the soil and groundwater that could be dangerous for you, your family and your pets. If any problems are found, you can request that the seller take steps to remedy the issues prior to the sell, or it may make you rethink the purchase altogether. Environmental testing is also helpful because it will indicate if any areas of the land are prone to flooding. The results of the tests should be looked at by a professional who has experience with reading environmental test results and in what should and shouldn’t scare you away from a building project.  

Get a Land Survey

Just as important as the environmental test is a professional land survey. When this is done, a land surveyor will go over the entirety of the property to find and mark the legally zoned boundaries. This step is always an important part of the process, but can be even more vital if you are purchasing land in a residential area that has sat vacant for a number of years. The boundary markers that were placed at the time of the last survey could be difficult to find or missing altogether, and it is important for you to know exactly what you will legally own in your purchase. Otherwise, you run the risk of accidentally encroaching on someone else’s property when you begin building your home, if not with your actual home building plans, with fencing and/or landscaping. 

Learn About Zoning Requirements

Photo Credit: Mortiz Ludtke @MoritzLuedtke

No matter where you purchase your land, you will be subject to the local government’s zones, codes, and ordinances. Even in rural areas, there are rules set forth by the county commission that limit what can be done to develop any property. When you are shopping for a plot of land, anytime you find something you think you like, go ahead and make sure you know the zoning rules and codes for the land you are interested in. And don’t assume it will be an easy task to simply ask for rezoning if your plans are in violation of the current restrictions for the land. 

What if you have found the perfect piece of land, but the local zoning ordinances do not allow for building the type of structure you have in mind? It is much easier for you to alter your own building plans to be within the current restrictions on any particular piece of land than it would be for you to go through the process of rezoning the property. In some cases rezoning is possible, but the process of doing so can be time-consuming and will likely end up costing you much money than you budgeted for when you planned your land purchase and house building.