How To Buy RAW Land For First Time Home Buyers EXPLAINED! – By Nicole Nark
Whether you’re a first-time homebuyer or looking to invest, purchasing land can be an exciting yet overwhelming process.
But fear not, I’ve created the ultimate step-by-step guide that will help you navigate through each step of buying land with clarity and confidence. So let’s get started with the ten steps to buy raw land:
Begin your search
The first step is to begin your search for available land. Real estate websites such as Zillow, Trulia, Redfin, Realtor, LandWatch, and Land.com are all excellent resources to browse through listings.
These platforms can provide you with a wide range of options, including vacant land listings. Additionally, consider visiting specialized databases like LandSearch.com, LandHub.com, and LandInform.com.
Engage with real estate agents
Real estate agents can be invaluable resources when it comes to finding land. They have access to listings on the MLS and can connect you with off-market properties through their personal networks.
It’s advisable to look for agents who specialize in raw land and have experience in fields such as geology, oil, agriculture, or forestry, depending on your land purchase goals.
These experts will provide guidance throughout the due diligence and legal procedures necessary to buy your land.
Utilize local resources
During your search for the perfect plot of land, it’s crucial not to overlook local resources.
In addition to online listings, consider exploring classified ads in local newspapers and online directories like Craigslist and Facebook Marketplace. Facebook, in particular, often has hidden gems.
Another approach is to directly contact landowners who might be open to selling at discounted prices. For valuable insights and ownership details, utilize GIS maps available on the county assessor’s office website.
Consider essential factors
When searching for land, several crucial factors demand consideration before making a decision. Firstly, assess utility access, including the availability of city water supply or the need for a well or off-grid water system.
Check for the presence of a city sewer connection or the requirement for a septic tank.
Additionally, evaluate the availability of electricity and internet services, as they significantly impact convenience and development costs.
Keep in mind that remote, off-grid living might pose challenges for internet access, even though options like Starlink are expanding rural connectivity.
Evaluate road access
Road access is another crucial consideration when purchasing land. If the property lacks public or private road access, you may need to create one, which can be costly.
This may involve hiring an excavation contractor, and potentially an arborist or logging company to clear a path to the property.
In some cases, obtaining a right-of-way easement, even through neighboring properties, may be necessary if the parcel is completely landlocked. The ease of this process can vary depending on your location and the attitudes of neighboring landowners.
Understand restrictions and zoning
Before finalizing a land purchase, it’s essential to understand any restrictions and zoning regulations that apply to the property.
Zoning rules define the permitted land use, such as residential, commercial, or agricultural. Contact the local planning and zoning commission and review their website to familiarize yourself with these regulations.
Additionally, check for any homeowner’s association rules, covenants, conditions, and restrictions that may impact your plans. Remember, buying land doesn’t grant unlimited freedom.
Some properties may technically be in subdivisions, subject to specific regulations outlined in the bill of assurance.
This document covers aspects like home size, exterior materials, garages, fences, auxiliary buildings, and even the possibility of keeping livestock. Make sure to check the bill of assurance before finalizing your purchase.
Explore financing options
Financing vacant land can be more challenging than developed properties, but several options are available.
Firstly, consider a construction department loan, which finances both the land purchase and future construction. This loan typically converts into a traditional mortgage upon completion.
Lot loans are another option, ideal for land purchases without immediate plans for development, but they often require a higher down payment.
Owner financing, where the seller acts as the lender, is also a possibility. Lastly, paying cash for the land eliminates the need for financing and is an excellent choice if it’s within your means.
Make an offer
After finding the perfect piece of land, it’s time to make an offer. If you have a real estate agent, they can help you draft and submit the necessary paperwork.
Alternatively, consider consulting a real estate attorney to ensure your offer is structured correctly. When determining your offer price, take into account market conditions, recent comparable sales, and the seller’s motivations.
Conduct your due diligence
Conducting due diligence to buy raw land is crucial to ensure that the land meets your expectations and is free from legal or environmental issues. Think of this process as similar to a home inspection.
It typically involves requesting documents from the seller, running a title search, checking zoning regulations, and performing soil tests. A survey to determine property boundaries is also advisable.
Personal experience highlights the importance of a survey: in one case, it revealed a neighbor’s home encroaching onto our property.
While it didn’t impact our plans due to ongoing negotiations for the neighboring parcel, it could have been detrimental if we weren’t already in talks with the seller.
Finalize the purchase
If the due diligence process proceeds smoothly without significant issues, you can proceed to finalize the land purchase.
Collaborate with your attorney or title company to manage essential paperwork, including the purchase agreement, title insurance, and closing documents.
It’s crucial to ensure that all legal requirements are met, and both parties are satisfied before completing the transaction.
READ ALSO: Steps To Build Your OWN House
In conclusion
Purchasing land demands careful consideration, thorough research, and professional guidance. By following these steps, you’ll be well-prepared to make informed decisions throughout the buying process.
If you have any questions or are about to buy raw land and have doubts or comments on the regard, feel free to leave them in the comments section below. I’m Nicole Nark, dedicated to helping you navigate your way home.
Whether you’re searching for your dream property or need financing guidance, I’m here to provide valuable insights and support.
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