A vacant lot provides a clean slate for constructing the home of your dreams. Even though a building isn’t there yet, purchasing a piece of land still requires adherence to certain procedures. Before buying property for sale, you should understand and prepare for every aspect of the process so you can find your ideal lot.
What to Know Before Purchasing a Lot
1. Understand the Costs
Beyond the land itself, you’ll have to pay for several other expenses. Title insurance provides financial coverage if there are liens or other issues relating to the lot’s title. If you apply for a loan to purchase the lot, your lender might require title insurance anyway. You’ll also need a land survey to dictate the property lines if the lot hasn’t had one recently. Also, pay attention to whether you need to drill for a well or implement a septic system, both of which are additional costs.
2. Learn the Zoning Laws
Zoning laws prevent certain types of buildings from being constructed in specific areas. Make sure it’s legal to build a home on the property for sale. You can either look online or find your county’s zoning office to confirm the land is zoned as “residential.” While you’re doing that, look at the future plans for the land around your lot to determine whether you could have an interstate or strip mall eventually built next to your building.
3. Determine the Flood Potential
Look at plats at your county’s courthouse to find if the property for sale is located in a flood plain. These will show the land’s elevation and likelihood of flooding. If you can’t find a plat, hire a surveyor. Learn the flood ratings as well. For example, Zone A means there’s a 1% possibility of flooding each year, which means insurance is mandatory. Zone X and Zone C indicate there’s less than a 0.2% possibility of flooding.
4. Apply for Permits
You’ll be required to get permits for everything you build on the land. Whether you need to drill for a well or install a plumbing system, you’ll be required to obtain a permit. They’re meant to ensure the building is up to code and safe for use.
If you’re interested in buying a vacant lot for residential or investment purposes, Lawrence Realty Inc. in Red Wing, MN, will help you through the process. With 70 years of experience, they’re the go-to real estate agents for those looking to buy or sell property in Minnesota and western Wisconsin. They use advanced tools, such as their pre-qualifier calculator, to determine your budget and find the property that fits your wish list. Give them a call at (651) 388-4745 to get started today, and visit them online to look through property for sale.