If you’re interested in building a custom home, buying a vacant lot can be more efficient than buying pre-developed real estate, as you don’t have to worry about demolition or working with existing structures. Before buying an empty lot, there are a few tips you should consider. Below are some key tips to follow when searching for land.

Do:

Work with an experienced agent.

A realtor that knows the area will be familiar with available lots and up-and-coming areas that will provide you with the most value. They should also be experienced in dealing with land, not just homes.

Land deals differ from housing deals in terms of mortgage, zoning and building regulations, and advertised uses of the land. An experienced real estate agent will help you navigate them.

Consider your budget.

Receiving a loan to buy land can be more challenging than getting one for a home. They may offer a loan for only 40% of the land’s value, if any at all, because buildings are collateral and they’re taking a risk by issuing a loan for land only. You may need to consider a construction loan instead of a land-buying loan, but you should explore your options and know what funding you’re approved for.

Don’t:

Forget to research prices in the area.

Research the value of both vacant plots and homes in areas you’re interested in. By knowing what other lots are selling for, you’ll have an idea of what you’ll pay for your desired acreage or terrain.

The value of homes in the area will also provide insight into the worth of buildings on your new land. It may also affect your ability to get a construction loan, as you’re likely to get turned down if the total cost of your project is more than what the house will go for when it’s finished.

Neglect to do a survey of the land before buying.

A land survey tells you the boundaries of the real estate plot, so you can confirm the amount of land you are buying. It also informs you if there are any structures on the land, such as someone’s driveway or building.

The surveyor will also advise you of zoning and building regulations for the land to ensure your plans can be carried out. In addition, they’ll point out any problems you may encounter during construction, such as erosion, unstable soil, or a wetland area.

If you need an experienced real estate agent to help you buy land, The Helping Hands Real Estate Team in Gilbert, AZ, can help. For over seven years, their real estate agency has helped buyers find the ideal land to build their dream homes on in the Mesa, Gilbert, Chandler, Queen Creek, San Tan Valley, Ahwatukee, and Tempe areas. Get started by submitting a search online, and call (480) 385-9107 to speak with a realtor.