Buying Property To Develop On

Looking for a dream home isn’t always easy, and an individual may have spent hours scouring the internet only to leave empty-handed. Maybe instead of looking for a dream home, people should consider buying vacant land to develop. Before someone takes it more seriously, however, they will need to understand a few things about purchasing land and the surprises that come with it.
Work with a Professional
Before someone buys land, they should work with a real estate agent when purchasing because this helps them navigate some of the finer details. Especially if someone feels less familiar with negotiating a deal. The real estate agent should exhibit extensive experience with negotiating land deals.
Consider the Value of the Surrounding Homes
The homes of a neighborhood will matter. One of the biggest reasons someone builds a home is because of how they can customize it the way that they want. The neighborhood should have similar tests. One real estate agent recalls a client who wanted to build his dream home, and he had already bought the land, but the bank refused his $2.2 million construction loan because most of the homes in the neighborhood were around $1.5 million. If it costs more, the potential homeowner won’t receive the necessary construction loan.
Don’t Skips Survey or Environmental Tests
A lot like a home inspection, survey, and environmental tests should also be conducted. This ensures that an individual understands the purchase that they will be making and that they will be able to build on it without a problem. An environmental test looks at the soil for contamination because of previous use. For example, auto body shops and previous gas stations will often have contaminated soil, which means a residential home can’t be built there.
Individuals should also always take a look at the property with a surveyor because it identifies the boundaries. Especially if the neighborhood sits on land that has been vacant in previous years, the neighbors may have begun to encroach on the land. Whether intentionally or unintentionally, people have to take action immediately because otherwise, it could work against them. After a while of a person mowing onto another’s property, they can legally claim it as their own. This is why it’s important not to let the neighbors take extra land or chores upon themselves.
