The Dos and Don'ts of Buying Land and Constructing
Buying land and building a home gives you more flexibility and freedom than purchasing an existing property. However, the process is a lot more complicated. Therefore, it's crucial to get it right from the beginning. Working with an experienced real estate agent at the early stages of the purchasing process will ensure you make an informed choice without getting stressed. Here are some tips on the dos and don'ts of buying land and constructing.
Select a Reliable Financing Plan
Do your research on the various financing plans available. When purchasing land, some agents/sellers provide seller-finance options. The interest rate can be higher than rates with banks, but the qualification process is usually far less stringent.
Some sellers prefer seller-financing over cash to take advantage of the interest and possibly receive a higher sale price. Consider conducting a market analysis before you buy the land to know the market value of the property before purchase.
Identify an ideal location depending on your preference. Consider an area near a town if you want to easily access more amenities such as shopping centres, banking halls and more. An away from town property is the best pick if you want a serene and less noisy surrounding.
Easy to Manage Topography
What are the land features? Is it near the road, or is it a corner plot? Topography, or the physical condition of the land, is significant as it is a key determinant of the cost of building and whether the land is buildable. Having a site visit before purchase is very helpful in ensuring that the physical aspects of the land match up to your ideas.
Also, look at any environmental issues that could crop up in the land. What type of soil does the land have? For instance, if it’s cotton soil, you will need to take the necessary precautions when building during a rainy season.
Select Reliable Contractors
It is also important to determine the contractor depending on the design of your house. This helps to avoid much delay and frustrations that come with contractors who intentionally take too long or are incompetent leading to issues and increased construction costs.
Be sure to interview, check references (those that have worked with the company before), and feel comfortable with your selection before proceeding. Perform your due diligence, and you'll be a step closer to your dream home.
Conduct a Site Visit
Believe what you see and not what you hear or read online. Only pay after you have confirmed that the land meets your expectations, has a genuine title and is owned by the person purporting to sell it. You can be promised a buffalo and be given a mouse. Ensure you conduct a physical inspection of the land.
Ignoring the Developers' Credibility
It is essential to know the legitimacy of a property management firm as it is an excellent start to the land buying process. Buying land from a reputable real estate agent saves one from having to go through the hassle of buying land.
Due diligence also helps you establish whether a company is registered or licensed by the relevant authority or not. It is crucial to get your facts straight to avoid dealing with a land vendor who will land you into problems in the future. This will also give you an idea of what kind of projects the agency deals with.
Not Securing an Original Title Deed
This is a mistake many people make and go ahead to pay for land before they get their hands on the original title deed or its copy. Ensuring that you have proof of the original title deed is important because that is how you will know the legit owner of the land.
Ignoring Critical Information in the Title Deed
A title deed is a crucial element in any land purchase process. Signing some titles can get you in trouble just because you did not read the terms keenly - knowing whether the title is legitimate and whether it is on lease or not. Going through the title with a lawyer enables you to find out whether the land you are investing in is safe or not.
Not conducting Due Diligence
Ensure that you research the land you are buying, whether freehold or leasehold. Most people usually hurry the land purchase process without doing due diligence, which can end up in some great mess. A leasehold property is given back to the government after 99 years if the owner fails to reapply for it. Therefore, it is essential to do your research to ensure you are not being sold land that has already reverted to the government.
Skipping the Site Visit
We cannot emphasize the importance of a site visit enough. Many people go ahead to buy land that they have not set their eyes on, which is a risky decision in land acquisition. It is imperative to ensure that you visit the land you intend to purchase to ensure that it actually exists, it's what you were looking for and what the seller purports it to be.
Purchasing land and going through the process of building a magnificent structure that one can call home can be quite stressful. However, the above tips and the right real estate agent will always make your home ownership journey a worthwhile process.