10 Things to Know when Buying Land

Finding the right lot for your new Greenfab home is not for the faint of heart, but the rewards can be astounding. So, if you are up to the challenge, are flexible and fast, and are eager to get started, we thought we would share a few pointers to help you in your quest. If we were to try and list EVERYTHING to consider, we would be writing a book, so instead, we thought we would highlight the most important things. For a more detailed discussion on these items, you can Click here and read our “Land Search Guidelines.”

1. It Takes Time. When looking to build a Custom, Prefab Home, finding the right lot can often take 12-15 months. It is seldom the first lot you find that you end up buying. Be patient. The perfect lot is out there, but it WILL take patience and persistence. Find a qualified Realtor to assist you. Having a seasoned agent that knows how, and has the time, to dig beyond the obvious listings everyone sees is paramount. If you don’t have a Realtor yet, contact us, and we can recommend one in your area.

2. Soil Type and Slope. When looking at land, the topography can break your budget. Site work on a sloped lot is significantly more expensive than site work on a level lot. Furthermore, if you want a basement, and your lot is hard clay, bedrock or made of unstable soils, you may get sticker shock.

3. Utilities Hook Up. If possible, find a site in which the sewer/septic, electricity, water, etc. already exist. If they do not, you may need to add a significant amount to your budget to add new utilities.

4. Get Pre-Approved. When the perfect lot comes along, you will need to act fast because good lots are in high demand. If you would like a list of qualified lenders that specialize in modular, prefab homes, feel free to contact us and we will be happy to introduce you to our partners. At the very least, you need to know how much you can afford.

5. A Deposit is Refundable. If you love a piece of land, and just KNOW that a Greenfab home would be perfect on it, make your offer, and put down a deposit or earnest money. You will then have time, typically a 60-90 day contingency period to do a feasibility study. If you find that it is just not affordable to build the house you want, or a that there are other barriers to building a home on this lot, you can get your money back as long as you determine this before the contingency period has expired. The great thing about building a prefab, modular home is that you will make up the time you lose during the contingency period during construction.

6. Your Budget and Your Dream Seldom Agree. It is seldom that people are able to get EVERYTHING on their list with the money they have, so it is important to prioritize. What are non-negotiables? There are many decisions you can make to get a project within your budget. Factors you may need to consider are location, views, level of finishes, and the overall size of the home. Furthermore, do research and talk to Realtors to discover if what you are looking for, with the budget you have, is actually available. All of us want a deal, but if you budget for one, you may be disappointed.

7. Permitting Fees. When you are budgeting for your new home, do some research on applicable permitting fees relevant to the area(s) you are considering. Talk to the local building and planning office, or contact us, as we may have had experience in that area. A house in one locale may be 20% more expensive in another, due to building fees.

8. Research The Site Conditions. Contact the real estate agent or property owner that is listing the lot and ask if there are any existing documents associated with the lot. Often times, a survey or soils report will be available, which will help in your investigation and determine if there are any potential hazards. Furthermore, it is important to know the zoning requirements. You can find this out by contacting the planning and building departments. It is also smart, if you can, to ask neighbors about potential problems with the lot you are considering. They are often the best resource.

9. Power Lines and Trees. Power lines can pose a challenge to prefab or modular homes as installers use cranes to set the pieces in place. If trees or power lines are in the way, they will need to be turned off temporarily or disconnected the day that your home is installed. You can contact the local utility company to determine the feasibility and cost of doing this. In addition, you may need to hire someone to remove or trim a tree to provide access. In some locales, you will need a special permit and possibly even be required to notify the neighbors to bring down a tree.

10. Consider a Tear Down. Depending on many factors, it may be cheaper to tear an existing home down and rebuild a new one than to do the site work on an unimproved lot. While you will have to pay for the teardown, these lots will typically require much less site work as they are usually flatter and containing all utilities. Furthermore, if you are looking to build a LEED Certified home, you can gain several points by using a previously developed lot.

Have a site in mind? Contact us today for a FREE pre-feasibility study and we can walk you through these ten things to know as you evaluate your options.