Tips for buying land for new construction-what to look for.

I would like to give you a few tips for buying land. Finding a piece of land on which to build your new home can be frustrating. Some of these may be obvious for some of you, but may not be so obvious for the first time buyer.

Consider availability of utilities before buying land

Electric - Accessing electrical power is hardly ever and issue. Most sites have electrical in close proximity making access to them relatively easy and inexpensive. However, if the proposed build site is remote, hook up fees can easily be in access of $10,000. It is a good idea to call the electrical provider for the area and get an estimate before you purchase the land.

Water - If the site is in an area where city water is provided, then there is not much to consider. If you need a well, then the two primary considerations are, (1)how deep will the well need to be, and (2)how is the water quality. The deeper a well needs to be, the more expensive it is. Poor water quality can also result in added expense. If the water tastes bad, then you may need a purification system. If the water stains toilets, tubs, and sinks, then a water softener may be needed. Unfortunately, there is no central service that estimates well depth or water quality for a given area that I know of. I would suggest talking to a couple of local well drillers. They should be able to give you some information. If there are neighbors, then talk to them about water quality if you can.

Sewer-Again, if there is public sewer, then there is nothing to worry about. If the site will need a private sewer system then you will want to make sure the land can pass a “perk test”. A perk test determines if a site has enough drainage to accommodate a septic system or engineered septic system. The test is performed by boring a hole in the land. It is filled with water to a predetermined depth. The water will drain from the hole into the earth. The rate at which it drains is measured in “minutes per inch(MPI)”. The low end of the scale is 15. A low number indicates the lack of ability to absorb sewage water. The septic may fail resulting in frequent back ups. The high number is 105. A higher number indicates that the water drains to fast. This indicates the lack of ability to filter the waste water properly as it drains. This can result in contaminated well water.

Consider external factors before buying land

There are several external factors that can affect you decision to buy a piece of land. Make sure you know what is around your proposed build site. The following is just a few examples of external factors that can make you regret buying a piece of property.

Airports, land fills, pig farms, factories, rail roads-obviously the smell and noise associated with these types of external factors can detract from the quality of the property. Be especially careful when you purchase land in the winter. The frozen earth and cold air can suppress smell until spring when it is too late. In addition, factories can contaminate water supplies.

Zoning-know what the zoning is when you purchase land. If you purchase land near an undeveloped piece of property that is zoned commercial, you may end up with an undesirable commercial entity next to you.

Hazardous material concerns when buying land

Get something in writing stating that the seller did not bury any fuel tanks, oil tanks, or any other hazardous material. I can’t even begin to tell you all the potential problems that could arise from buried hazardous material.

Accessibility concerns before buying land

Make sure you can get to your land legally. This may sound silly, but I have seen people purchase land that was land locked and they had to buy or rent a piece of the neighbors land to get to their own. Also, make sure the roads leading to your land are maintained by a public or private service. Here in Michigan, it is not uncommon for people to get stranded by roads that wash out or by roads that are not plowed in the winter.

Soil test before buying land

It is a good idea to get a soil test to make sure your land can support the weight of your house. An excavator has to dig down to solid soil in order to support your foundation. Obviously, the deeper you go, the more expense and problems you have. Your realtor should be able to give you the names of some soil engineers in your area that conduct such tests.

Is the land in a flood plain?

Make sure you know if your property is in a flood plain or not. Being in a flood plain does not necessarily mean you should not build on that property, but you should be aware that insurance is higher for such land. Be aware of neighbor rain water run off. If the neighbor has a huge hill next to the property you want to buy, then it stands to reason some of the rain that falls on his property is going to drain on to yours. Ask specific questions about such concerns and get them in writing. This will be your only legal recourse should you find that your property floods due to neighbor rain water run off and the seller did not disclose this fact.

Value considerations when buying land

Land value will continue to increase because they aren’t making any more of it. But you don’t want to overpay for the land. This can give you negative equity in your home right up front. Check asking prices in the area you are considering to buy land. If you want to be sure of the values, have the land appraised by an appraiser who is working for you, not the bank. This is the best way to insure an uninfluenced estimate of value.

I hope these tips for buying land help. If you have specific questions or cancers about purchasing land that I did not mention here, then please feel free to contact me. Your questions and comments are always welcome.

R. Paul Phillips provides new construction and remodeling services. Please contact us for a free estimate concerning any project you may have.

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