Find the Right Building Site: 9 Tips
By: Jerry Rouleau, speaker and consultant, and author of Selling New Homes: Sales & Marketing Workbook for Million-Dollar Producers, and Selling New Homes the Easy Way
Where you build your new home can be as important as which home you build. The area you choose, and what you see from your windows will have a large impact on your long-term home satisfaction. While basic guidelines for buying property are well published, here are nine points that are often overlooked when shopping for the perfect home site.
1. Location. You've probably already plotted your commute times to work, looked at schools, shopped around, and considered social activities in prospective neighborhoods, so you've gotten a good start. Don't forget to consider growth trends for the area, too. Building in a fast-growth area could mean that your home will appreciate substantially in five years. But traffic congestion could also increase, or growth could outpace the infrastructure - utilities, fire protection, highways, etc. Check the community's strategic growth plan, if there is one, to get a glimpse of what the area will look like in the foreseeable future.
2. Taxes and Fees. Check the tax rates for each community you are considering before buying. Some high-growth areas experience large property tax increases in order to sustain growth. Consider all assessments: state, county, and local taxes. Additionally, research Homeowners' Association Fees, as some developments have additional costs for road maintenance, curbs, neighborhood lighting, etc. Make sure your household budget includes these expenses, which can translate to hundreds of dollars per month.
3. Neighborhood. What size home do you want to build, and how much are you willing to invest in your home and land? Build in a neighborhood with homes of similar size, style and value. It might be tempting to have the nicest home in the neighborhood, but if you build a $350,000 home in a neighborhood of $150,000 houses, your home will never appraise for its true value. Lot prices correlate to the value of the homes built within the neighborhood, so choose an appropriate area for your home. Do not be blinded by low lot costs, and do not over-build for the area.
4. Rural Sites. Getting away from the urban sprawl is another alternative when choosing a home site. However, just because you are not building in a development, doesn't mean that there aren't any covenants or restrictions, though often that is the case. When buying rural land, always review the plot plan and recorded deed, for any easements or right of ways that might exist. These could give others unrestricted right to use or cross your property, without your approval. Also, make sure that you will own the mineral rights to the land, as well as the property itself. I always recommend hiring a title company to do a title search and issue title insurance when buying rural land. This will protect you if a third party surfaces with an unrecorded property deed to challenge your ownership. (Rare, but it happens!) Most mortgage companies will require this, too.
5. Septic System. If your property is not on a sewer line, you will need to install a septic system. The type of system required (and its cost) will depend upon how well the property drains water: better drainage usually equals a lower-cost system. A simple test will determine the type of system you need (either a percolation test or a soil evaluation test, depending upon your area). These tests are generally performed by a civil engineer for around $400, and are required before issue of a building permit. A simple leech field system can usually be installed for around $4,000; more elaborate systems for poor-draining property can exceed $20,000. Ask the seller to provide a certified test before you buy, so you will know what costs to expect before purchasing the land. If the seller refuses, order one yourself. You will need the test conducted anyway, if you buy the land.
6. Rock Sounding. If you are planning to build a basement, a rock sounding will tell you the soil depth and the locations of any underground rocks or obstructions. This test can be conducted at the same time as the septic system test, for a low additional expense.
7. The Building Site. Once you have purchased your property, you are ready to determine exactly where you want to place your home. Which direction do you want your home to face? Where does the sun come up and go down? What is your best view? Where will the driveway and septic system go? Make sure your house plans fit the property and that adjustments can be made to the plans, such as flipping the plan, if needed.
8. Covenants, Restrictions and Setbacks. As mentioned earlier, if you are building within a development, there are likely to be covenants - 'community rules' that are designed to ensure that all homes in the community fit a certain theme. This protects your investment, by requiring that all neighboring homes will be within the size range and be of similar style and value as yours. But, they will also require you to meet the same standards. Be clear on what you can and cannot build, before you buy! You will likely encounter restrictions regarding how closely you can build to the edge of your property. These are called 'setbacks.' Make sure that the home you intend to build will fit within the space allowed, including porches, garages and outbuildings. Setbacks are usually set by the city or county agencies and are non- negotiable.
9. Size Restrictions. Finally, ask building officials for minimum square footage requirements for new construction.
With a little diligence and effort, and with the help of this checklist, you will find the right site to fit your needs and budget. These pointers will help you navigate some of the most commonly overlooked challenges. Contact one of our sponsors for other buying tips, or for more information on planning your new home.
For more information about our contributor, visit Jerry Rouleau's web site: www.jrouleau.com. Jerry can also be reached at 860-589-7391 or by e-mail at: jerryrouleau@comcast.net.
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