Buying Tip: How to Pick the Perfect Piece of Land

There’s a real thrill in buying your own piece of land and planing to build your dream home. The land is raw and untouched and can become anything you want…but picking the perfect parcel can prove a bit more complex than you may think.  Here’s what you should know before you get started:

1. Zoning

Check local zoning laws, this is where your Locations Montana Real Estate Agent can assist you in a tremendous way. No matter how great the property may look at first if it doesn’t meet your specifications it’s worthless. While you can always look into a properties zoning on your own knowing the differences can change everything about how you should approach a property.

A few other things to check: is the property landlocked? is there an easement needed? What are the setbacks from each side? How about ordinances, they could limit the size of your dream home.

2. Cost

How much will the property really cost you? National costs for a plot of land is 3,020 per acre but according to the National Association of Home Builders the median cost of building a home is over $289,000. But that’s just the beginning, you’ll need a survey, permits and even health department approvals. Then getting the site cleared and graded then excavated.

The entire process from identifying your perfect parcel to moving in can take a year or more so be sure you’re up for the long haul.

3. Think Utilities

You’ll probably want to have water, electricity and indoor plumbing…and those modern-day conveniences it’s going to cost you. One major event is the septic tank, many people around the Bigfork area aren’t on any kind of city water supply and finding a place for the septic tank can take longer than you may expect and some parcels of land can may not even be able to have a septic tank so again, this is where your Locations Montana Real Estate Agent can be invaluable!

4. Hire a land planner

In addition you can find more help with a land planner, they can help you figure out whether a piece of land is ideal for building your dream home. Much like a traditional home inspector can size up any issues with a house for flaws that could cost you a lot of money.

5. Financing

Not all loans are created equal, and their requirements all vary greatly. It’s a higher risk loan for most lenders since the buyer can much more easily walk away leaving them holding the bag so they typically require a higher down payment (anywhere from 20% to 50%). They may also require a more stringent credit score requirements and even a higher interest rate.  But there could be help for those who need it, ask one of our Realtors about the Section 502 direct loans which may help people purchase lots  to build homes on.

Find out more about how to pick a lot and the types of research to be done before you buy by asking one of our Locations Montana Real Estate Agents today!

Source: http://www.realtor.com/advice/buy/how-to-buy-land/

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