Buying Land & Building a Home
Before you spend much time looking for land to buy, first do a little
research to find out what costs and steps have to be take before the
actual construction. You may decide it is worth more to buy an existing
home and make personal modifications. Many first time home builders think
you just buy a lot and get some building permits and start building. Not
so, there are a number of steps and issues one has to consider before
applying for building permits.
When buying
land, you need to check the zoning to see if a home can be built on it. If
it is zoned for residential, one must consider if it can be hooked up to
sewer and water or is capable of supporting a septic system and well.
Septic systems
generally cost $5,000-$10,000. Wells can cost $15,000-$40,000, depending
on the depth, location and the need for a secondary pressure tank.
Building in an
unincorporated area usually requires a secondary pressure tank for the
required interior fire sprinklers. Then there is the cost of bringing in
other utilities such as electricity, propane tanks and phone lines.
Certain areas
in the area require a "Perq Test" to determine if the site is suitable for
the required septic system. This involves digging a hole and waiting a few
days to determine if the ground water rises to the point where a septic
system would contaminate it. This test can only be done during the rainy
season. Grading a lot can be a major cost of building a home. Many lots
are priced seemingly low because the high cost of grading and site
preparation in order to build.
Obtaining a loan on land is not as easy as getting a loan for buying a
house. Buying raw land, lenders typically require 50% down usually with a
shorter term and a higher rate of interest. Once these steps are taken the
next stop is the local planning department.
Homes for sale 
