The location of your custom home is no doubt very important. Many amenities can be upgraded in the future. For example, if you decide that you don’t like a paint color or want a nicer light fixture, you can alter those details. The placement of your home, however, cannot be changed. Because of this, purchasing the perfect piece of land or the ideal lot is crucial. How much will this property cost? Well, there are two main factors which affect the price of land or lot.
The Price of Land or Lot
As previously stated, there are two main factors which affect the price of land or lot. They are as follows:
- The cost of the land or lot
- The cost to prepare the land or lot for building
Cost of the Land or Lot
One factor which affects the price of land is its cost. While the cost of land is, obviously, the negotiated price that you agree to pay, there are other factors to consider. You will also be required to pay taxes, as well as closing fees on the land. If you are working with a real estate agent, he/she will earn commission for helping you close the deal.
For more information about negotiating the price of land or lot and closing on land, click the links below.
“How to Find and Buy Land”
Cost to Prepare the Land or Lot for Building
You may have noticed that the referenced articles above are steps 4 & 5 of the series, “How to Find & Buy Land for Your Dream Home.” You might be wondering about the first three steps. Well, you probably already know that you’ll need to obtain financing and find a piece of property, which are steps 1 and 2. Many people are unaware of the third step, however, and jump to step 4—negotiating price—prematurely.
Step 3—evaluate the land—is crucial to ensuring that the land or lot you believe is perfect for your dream home is buildable and truly fits within your budget.
To evaluate the land, you must:
- check on utilities
- find out whether the land is in a flood plain
- verify zoning
- conduct a survey
- estimate how much it’s going to cost to prepare the land to build a house
- make sure there is access from the main road to your proposed building site
To read all the details about what each of these steps entails, please click on the image below.
The expertise of a professional home builder helps when evaluating land. Please, contact us if you have questions.
The Price of Land or Lot: An Important Step to Staying in Budget
While the location of your custom home cannot be changed, be careful about spending too much and over-extending your finances from the start. Purchasing a fairly priced parcel of land is an important step to staying in budget during your custom build. (Read more about how to stay in budget while building here.)