For homebuyers, there’s nothing more discouraging than house hunting for weeks or even months on end, only to conclude that there’s just nothing out there that fits your needs. Homebuyers often in the search of home think about building a home. The search turns to looking at lots for sale to build on. In South Placer for example, there are very few small/city lots for sale, the land being sold is often in rural areas and 2.3 acres or more in size.
Talk to a Custom Home Builder First
So nothing for sale is making the wants and needs and you are frustrated. Buying a lot and building is a complicated process with many moving parts. The first step should be to talk to a custom home builder to see is what you want can be yours for the budget you have. You might find building isn’t an option but finding a home you can remodel or update to your tastes is now an option. Let’s assume you found a reputable home builder that you can trust, and the budget you have is doable for the home you want built. How do I find the right lot?
How to Buy a Lot to Build On
Your going to need to work closely with your builder for the lot you need.
- Have your Agent talk to the builder. The first step is to have your agent talk to the builder. Don’t have an agent? Most builder often work with real estate agents, ask for a referral. The Agent should be able to get the critical items for the lot search.
- Look into financing. A construction loan is much different than a home loan. Find the local lender who understands construction loans. Your lender may recommend a lot loan too. Once you understand the financing then the next step is to start the actual search for a proper lot /site to build a home.
- Have your Agent create a lot search for you: Don’t waste your time , get a lot search based upon the criteria you discussed with your builder. The lot search will be more efficient if you are only looking at what might work. Most MLS searches will tell you what utilities are to the site. Utilities if need to be delivered to the website can be a very large expense that may not be in the budget.
- Consult your Builder before you make any offers. Once you have found a lot you think might work, you need to get your builder involved to validate it works for the build of your home. There are issues such as access to the lot, zoning setback, easements, the building envelope, utility costs, and more to be considered before you make an offer.
- Make an Offer. If you do your homework, buying land to build your dream house can be very rewarding since in the end you get “your” home. However, it takes a team to buy a lot and a lot of professionals to help you make it all work.