If you’re preparing to choose a site for that once-in-a-lifetime home-building project, consider a game of 20 questions.
Should you buy an undeveloped parcel or should you look for a residential lot in a subdivision?
Undeveloped land comes in many forms — everything from a wooded parcel to a cow pasture or even a sandy acre in the desert. Owning land also brings liability issues. For example, if an uninvited hiker falls into a ditch would you be liable? Rural residents may have to form their own fire district, too.
Make sure you address other potential costs such as access to water. What’s the history of wells on or near the property? Do you have a backup plan for ensuring a water supply, if an extended drought occurs? Are there hidden pollution issues, such as a previous owner who secretly buried trash that may be seeping chemicals into the ground water?
Does the property have water and sewer lines? Do public utility lines run to the edge of the property? If not, how much will it cost to run a line? How much are the connecting fees? Will you be able to obtain permission to drill a well? What about installing a septic system? Does the lot have access to electricity, gas, telephone, cable, and trash pick-up services, and if not, what will the cost be to connect utilities?
Building on undeveloped land also brings up the question of vehicular access, as roadways come in mighty handy for most folks. Still, you may not realize the implications of rural life. Often, you’ll have to maintain a road, whether it’s an extended driveway or a mile-long road prone to erosion.
If you’ve decided on a lot in a subdivision, consider the risks of building in close proximity to neighbors. Do you want to endure the teenager next door playing heavy metal at 2 a.m.? On the positive side subdivisions usually carry less risk. Still, have you forgotten the horror of another potential Love Canal? Have an expert test the soil and the groundwater. If it’s a hilly site, ensure the land is stable. Have an expert conduct a geological assessment.
There are a number of additional questions you should address. Is the property unencumbered, or are there questions about obtaining a clear title? Do local zoning ordinances allow the construction plans you have in mind? You might also ask the realtor: Is there any proposed development planned for the area? If you’re looking for rural peace of mind, the last thing you want to lose is that picturesque view of rolling farmland. Did you consult with the engineer for the city or county, as well as local realtors?
If you’re thinking of hiring a builder to erect a home in a subdivision, will it be a master-planned community? Does the homeowners association have jurisdiction over the lot, and are there any homeowner association covenants, conditions or restrictions?
Keep in mind acquiring land is a tricky business. Be sure you play that 20-questions game.