Back HomeA guide to buying land
One of the biggest reasons to buy land instead of buying an already built property is that you can start completely from scratch. You can, if you have the funds, build the home of your dreams, with everything exactly as you envisaged.
This can be a daunting idea for some, who are already anxious about the complexities of buying a house, but for others, it’s a wonderful opportunity.
So how would you go about acquiring your own piece of land? Here’s a couple of important pointers to get you started.
Get the best agent you can
As with buying a house, getting the right agent to help you buy the perfect plot of land is a must.
They’ll bring with them a vast amount of local knowledge. That plot may look perfect but maybe there’s something you’ve missed. If it looks too good to be true an agent will tell you why. Is it too close to a proposed construction of an airport or other undesirable development? Does it have issues with flooding that are not immediately apparent? There could be a host of issues that you not being a local could not possibly be expected to know.
Also, if you’re buying a house or land in Texas, there’s a lot of property and plots. An agent helps you sift through the chaff to get to you exactly what you want.
They bring with them a raft of professionals that you’ll need, lawyers and lenders will almost certainly be required. After you acquire the land, you’ll need builders to build the house and in some cases, professionals to install utilities.
Get your finances in order
If you have the funds to purchase the land outright, all the better. However, if you’re not in this position, and many aren’t, then you’re going to need a lender. You can expect to have to put down anything from 20% to 50% of the total cost depending on what type of land you’re buying.
If the land is considered raw land, which will need improvements such as utilities like sewage, water and electricity, then the venture is considered riskier than the acquisition of developed land. As such, a lender will require a larger down payment.
There are different types of loans from different bodies. You may even be entitled to local or federal government assistance, or there may be some particular body within the state that can provide assistance. Again, a good agent can provide you with the local information you need.
As with getting a loan for a house purchase, your credit score will be the major factor to getting your loan approved. Improving your credit score by minimizing lines of credit and the prompt payments on debts will significantly boost your credit score rating.
It may be the case that you don’t yet have the financial ability to buy the land and build a house at the same time. Should you still go ahead and purchase the land? This is a tricky one. House prices across the country are generally appreciating and will likely do so for some time. This makes it harder to buy houses. However land does not appreciate in the same way as houses. Generally, land increases in value mostly due to demand or developments in the area.
You may be able to hold off buying until you are in a better position to build a house soon after you buy the land. However, if you’ve set your heart on a piece of land then it may be better to snap it up before someone else does. An agent can discuss your options with you. Often just considered people who tend to the administrative side of purchasing land or houses, agents are often also the source of objectivity for their clients. They can help you keep your best interests in mind in a time of high stress and anxiety for you.
If you’re at the stage of property searching in Brazos County, or the surrounding areas, whether it be to buy a house or you’re looking for a plot of land to build on, get in touch with our team. We have the care and the expertise to get you exactly what you’re looking for with the least amount of stress. Contact us at 979.694.8844 or send an email to sales(at)bhhcaliber(dotted)com.
