With the inventory of available homes continuing to shrink, prospective home buyers are becoming more creative in order to fulfill their family's housing needs. This is especially true for prospective buyers who have grown tired of competing for each new listing, only to have their full price offers eclipsed by a competing buyer willing to offer more than the listed price.
In order to regain a sense of control over their housing situation, some of these frustrated buyers have become interested in purchasing vacant land and building a home that can fulfill their family's housing needs. If you are among this group of buyers and have begun to search for a suitable parcel of vacant land, taking a moment to consider the following information can help you enjoy a better purchasing experience.
Are there potential negatives to consider?
Purchasing a property only to find that it has issues that will be difficult or costly to correct is something that most land buyers should strive to avoid. For example, properties with some types of negative issues could seriously affect both the future value of the property and the buyer's ability to build their home on it. These negative issues include:
- environmental contamination from surrounding properties or from the activities of a previous owner
- boundary line disputes, encroachments, or easement issues
- costs to bring electrical power, sewer service, and water to the property
- risk of flooding or erosion from unrestricted water flowing from other properties
Prospective buyers will also want to carefully consider the surrounding homes and properties in the area. If the majority of neighboring properties are similar or higher in value to the one you plan to build, their influence can help to strengthen the value of the home you construct. However, if the neighboring properties are falling into disrepair or have significantly less value, they can negatively influence the value of the home you plan to build.
Is the zoning appropriate for building a single-family home?
When buying vacant land, prospective buyers will want to ensure that any parcel they are seriously considering is zoned appropriately for the single-family house they plan to build. While it may be possible to get the zoning changed, the process can be a difficult one that could result in extensive delays for your home construction project.
The process of buying vacant land for the purpose of building a home can present some challenges for prospective buyers who are unfamiliar with the market, area, or specific issues they may face. To ensure the smoothest possible vacant land purchase process, prospective buyers should always choose to work with an experienced, local land real estate professional.