Many people dream of owning their piece of land for a good reason. The independence and privacy that come with property ownership are just some many benefits to consider when shopping for your ideal plot.
But before you purchase land for sale, it’s important to know what factors may affect your purchase- from zoning laws to how much liability insurance you need. In this article, we’ll explore the various aspects involved in buying a property.
What Is a Land Purchase, and How Do You Know If It’s Right for You?
A land purchase is the buying of any type of real estate, whether it be a house, a condo, or raw land. Buying raw land can be an excellent option for investors and people who want to build their own homes from scratch, but it’s important to know what you’re getting into.
Raw land purchases come with their own set of advantages and disadvantages, which will vary depending on the neighborhood you’re in. For example, if you’re buying in a rural area, you may find that there is no power or water available, and you’ll need to factor in the cost of bringing those services to your land.
On the other hand, if you’re buying in a more developed area, you may find that the prices are higher, and those zoning laws may not allow you to do certain things with the land, like building a home.
Before you make any decisions, it’s important to consult with an experienced real estate agent who can help you assess the pros and cons of each neighborhood and give you a better idea of what to expect.
Location: Consider Your Commute, Nearby Utilities, and Accessibility to Public Transportation
The location of your land is an important factor to consider, although it can vary depending on what you’re looking for.
If you want to build a home that backs onto the woods or has a view of the mountains, then the location may be most important to you. On the other hand, if you’re looking for something closer to town or want easy access to public transportation, then you’ll need to factor in commute times and other amenities.
In addition, you’ll also want to consider whether the land is easily accessible to public utilities. If it’s not, you may have to pay to have them brought in, which can add significantly to the cost of your purchase.
Zoning Laws: Understand the Rules Governing Residential Property
Zoning laws can vary from state to state, and you’ll want to make sure that both the land you’re considering and the kind of property you want to build on it is zoned for what you want.
For example, if you’re looking to build a single-family home in an area where zoning laws allow multi-family dwellings, you may be out of luck.
You’ll also want to be aware of any regulations that govern the use of the property. In some cases, you may not be able to build a home on the land or may be restricted in terms of the size and type of structure you can put up.
Liability Insurance: Learn About Different Types of Coverage Available for Homeowners
If you’re buying a piece of land to build a home on, it’s important to factor in the cost of liability insurance. This type of insurance will protect you if someone is injured on your property.
It’s a good idea to get quotes from several insurers and compare rates, as coverage can vary significantly from one company to the next.
It’s also important to make sure that your coverage includes expenses related to injuries on the land. This typically extends beyond medical bills and can include lost wages for someone injured while visiting your home.
For example, if you have a pool on your property, your liability insurance should cover any injuries resulting from someone diving into the pool.
Financing Options for Purchasing a Piece of Land
You’ll need to consider how you’re going to finance your purchase, as well as any additional costs that may be involved. For example, if you’re buying raw land, you’ll also have closing costs.
You’ll also want to take the time to compare different financing options available through banks and other lenders. If you’re looking for a more flexible option, you may want to consider using an alternative source of financing like peer-to-peer lending.
For instance, if you want to purchase a piece of land for $50,000, but the closing costs and other associated fees bring the total cost up to $60,000, you’ll need to borrow at least that much.
Your lender will look at your credit score and debt-to-income ratio to determine whether you’re eligible for a loan.
A piece of land can be the perfect place to set up a home or to begin building your assets. Before buying land for sale, make sure that you understand all the factors involved and do some research on the neighborhood and the zoning laws in your area. With the help of a qualified real estate agent, you can find the perfect property to fit your needs.