10 Must-Ask Questions Before Buying Land
With inventory so low, I’ve had lots of Clients explore buying land and building…
The idea is very appealing - I mean, I’ve considered the same!
Logistics and costs of building the actual structure aside, here are 10 important questions to consider when purchasing the land itself:
How is it zoned? What can you use the land for? Every town has different zoning classifications and regulations. Some areas don’t allow campers, others only allow single family residential use, or recreational use.
Are utilities easily accessible? Are poles far from the building site?
Has a percolation test been done? Traditional septic systems only work if the soil in the leach field area is sufficiently permeable to absorb the liquid effluent flowing into it. A test needs to be done to ensure the land is suitable for a system.
Are there any deeded restrictions, covenants or easements? Does the deed include rules about what can be built on the land. Are there any access ways for other properties, or easements through others to access this one?
Is the road Public, Private, Class 6? If it is not public, who is responsible for maintaining the road? Are there any contracts in place for this? If a Class 6 road, is it accessible in winter? And be prepared that getting utility / building trucks etc. may be difficult and expensive.
Can you legally build what you want to build? I always advise that before doing anything, call the Town the lot is in and ask if there are any building restrictions on the lot, or permitting processes, that you should be aware of.
Why is the Owner selling and how long have they owned it? Did they just buy it and are they having issues building what they want? Have they ever explored building on the lot?
Is it in a Flood Zone / are there wetland areas? You can look up an address HERE via FEMA to see flood zones. If there are wetlands, they could be protected and there could be building setback restrictions.
Does the Town have subdivision restrictions? If you plan to subdivide, make sure you know the Town rules and if you have enough acreage. For example, Mont Vernon, NH requires you have a minimum of 3 areas in order to subdivide.
Has the property been professionally surveyed? Ask if the Sellers are guessing on the lot lines or if it has actually been surveyed. The survey should be available on file at the Town.
I am not a builder, but based on my research, it seems you can estimate it will cost about 50% of the price of the land to develop it. I would take that into account and then estimate $25,000 for septic and $25,000 for well. Obviously, this depends on your plans for the land and also where the lot is, how accessible, what the makeup of the land is etc. But I’d start my calculations there.
Before even looking at land - the first step you should take is to connect with a builder to discuss your plans and the building process.
Buying land and building your dream home is not impossible but it’s also not for the faint of heart. There are many variables, unknowns and costs you simply can’t predict and know 100% for sure.
It’s an exciting idea. You just need to be prepared for the road ahead which generally means, being flexible and ready for the adventure!
