Building a home from the ground up will give you an endless amount of creative freedom to design your ideal living space. However, buying a plot of land also requires sifting through listings and working with a real estate agent to narrow down the possibilities. If you’re about to begin the process of purchasing land to build a home, let these do’s and don’ts be your guide.

Do:

Work with an agent who knows the area.

When buying a residential lot instead of a house, your main concern will be the location. Luckily, a real estate agent with a familiarity of the neighborhood can let you know what school districts are like, whether you’ll be able to build that two-story property, and how loud the passing trains can be at night. With a local guide at your side, you can feel more confident about your investment.

Consider your budget.

If you don’t have enough saved up to buy the lot upfront, you can apply for a land loan, which is different from a mortgage. In this case, the land you live on will be your collateral. This means, if you’re not keeping up with payments, the lender can take your lot and sell it. Lenders may also have stricter criteria for borrowers, such as requiring higher down payments or credit scores. Therefore, it may be in your best interest to look for a less expensive piece of land.

Don’t: 

Forget to research.

Before you commit, find out how much the other homes in the area are valued at. If your “dream home” is expected to pricier, you might need to extend your search radius. Construction loan lenders only grant a loan for a home that is comparable in value to the surrounding properties.

Avoid a survey.

The more you know about your lot, the more confident you can be in your purchase. A land survey will clearly establish the boundary lines of your property, so you know just how big your potential backyard really is. Other surveys will give you an idea of the slope of the terrain, which could point to drainage issues, as well as underlying pipelines or utilities.

If you’re eager to move forward with your property hunt, reach out to a real estate agent at RE/MAX Real Team Realty. This Ashland, KY, team will be happy to help you find and buy property that meets all your criteria, as well as your budget. With their attentive agents and reliable communication skills, you can expect to find the ideal commercial or residential lot. To learn more about their services, visit the website, or call (606) 325-0407 to arrange for a consultation.