Vacant land holds countless possibilities. Perhaps you have dreams of building your own home or farm. Or maybe you are planning a business or subdivision. Buying vacant land can be a great way to create the property you want, especially if you’ve been searching for a long time and have come up empty. However, buying vacant land isn’t something you should rush into, especially if it’s your first time. With land purchase comes unforeseen expenses, zoning restrictions, and environmental factors. There are also closing costs to consider, such as land transfer tax. It’s important to make sure you know exactly what you are in for when purchasing vacant land. Here are some tips to make your purchase a success:
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Hire a Professional
The best thing you can do for yourself is hire a real estate agent who has lots of experience when it comes to the buying and selling land. A real estate agent can be instrumental to finding you the right property, negotiating for a good price, and closing the deal. The purchase of vacant land and the purchase of an existing home are very different. Make sure you go with a pro who knows the ins and outs of purchasing vacant land.
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Look at the Neighbourhood
If you are applying for a construction loan, then it’s important to keep in mind the value of your home must stay consistent with the value of other homes in the neighbourhood. While buying vacant land does give you endless possibilities to customize your home, if it’s significantly overpriced, you may not get your loan. Make sure the neighbourhood is in the same value bracket as what you have planned before you buy.
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Have an Environmental Test
An environmental test will test soil, and water if applicable, conditions on your property. Having an environmental test done ahead of time can save you from building on poor or polluted soil. An environmental test can also test for the potential of disasters such as flooding. Make sure you are prepared for all eventualities.
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Be Familiar with Zoning Laws
Make sure you fully understand the zoning laws of the area you are buying in before you buy. Getting exceptions to zoning permits is nearly impossible, and, depending where your land is, there may well be restrictions that get in the way of your building plans.
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Look Into Utilities
When building a home from scratch, don’t forget to take into account utilities such as water and power access. Road access is also something to consider. If you are buying in a remote area, there may be extra expenses to consider.
You can find land transfer tax calculators online to get an idea of what your closing costs may be, but hiring a professional with experience in purchasing vacant land is your best bet for a successful experience.
