How to Buy a Residential Lot

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Most people would prefer to buy a residential lot so that they can have a brand new custom-built home that they build from the ground up. There are many paperwork, requirements and legalities involved in buying a residential lot. Here are some basic steps you would need to consider taking if you are planning on buying a residential lot.

Things You'll Need

  • Internet
  • Library
  • Real Estate agent or broker
  • Find out where you would want to buy a lot. You may have a city, county, or specific location in mind. If you are building your dream home, you probably have planned or imagined a place you want to build it. Decide on where to buy your residential lot before you start looking for available ones to buy.

  • Check the local real estate listings for available residential lots for sale. You can check the newspaper, real estate publications that feature residential lots for sale, Internet and multiple listings.

  • Hire a real estate agent or broker to assist you. This is especially important if you have a busy schedule or if you are planning to buy out of your current area. This way the agent can work for you to find what you are looking for.

  • Investigate the land you are buying. Find out details about the location. If you do not have an agent you can start by getting all the paperwork from the sellers. They may already have detailed reports as far as floods, earthquake zones and soil analysis report.

  • Check if there are water and sewer lines or if you still need to get them done. It will be less of a hassle if these are already done and permitted. Check for phone lines, electrical and cable lines if they are readily available in the area. If not, be prepared to spend for permit and work to get those.

  • Find out from the city or county planning commission if the land that your buying is not accessible via public road. If so find out if it would be part of their maintenance.

  • Check if there are any restrictions on the property. There maybe limitations to what kind of architecture to build. Some cities or counties restrict building certain types of homes, like homes that are manufactured, or mobile type homes. There maybe size restrictions as well.

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  • Make an offer. Once you are satisfied with all the requirements, restrictions as well as the price of the lot, it's time that you come up with the numbers to offer. Offer as close as possible to the asking price. Get comparable pricing in the area. If you are building your home right away, factor in the price of the home to the offer you want to make on the lot so that you do not go over budget. Better yet, talk to the lender and get a pre-approval for loan construction, ask them to include the price of the lot on the loan.

Tips & Warnings

  • If you are purchasing a development area, find out that the covenant restrictions are for that community. They may have certain restrictions on what type of architecture to build. Furthermore, they may require to see your blue-print so be prepared for this.
  • Make sure to study the deeds carefully. You would not want any headache in the future whereby the neighbor would claim part of the land you think you are purchasing.

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