It may seem that buying raw land is much easier and convenient rather than buying a house. For a house may come with defects and discrepancies. But in reality purchasing raw land is much more complicated and involves higher risks. Read further to find out what you need to ensure before purchasing a piece of raw land.
- Before purchasing raw land inquire whether there are any restrictions on the property. Take your agent’s help to check out your local title company and the CCR on the land. The CCR will inform you about the covenants, conditions and restrictions on the land. It will help you know what you can and cannot do on the property before making the purchase.
- Survey the land to determine the boundaries. This will help you define the shape or corners of the raw land.
- Raw land may need a bigger down payment and a higher interest. So look for lenders if you cannot afford a big down payment.
- Take time to research on the land before buying. The more you know about it, the better prepared you are when you approach prospective lenders.
- Find out where the nearest utilities are located. In case the land is located in an area which is not serviced by a city sewer or needs a septic tank, then it is advisable to get an engineer’s report on the land. This is to determine the size of the system that needs to be installed plus the price you will incur.
- Determine the objective for purchasing the raw land. Do you need it for investment purposes or for building a home? It is better to use the land for a specific purpose, in order to make it more valuable afterwards. You can either build a house; use it for farming or as a commercial property.
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This entry was posted on Tuesday, May 13th, 2014 at 7:51 am and is filed under Buying land. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.