Confused on whether you should buy an existing house or buy land to build your own house on? You’re not alone. Many people are trying to live the "American dream" of owning a house. A popular possibility of that homeowner dream is buying land to build a house later.
Is that the right choice, though? Is that what you should do?
When it comes to buying a house, there are a lot of options out there. You can buy an existing house or you can custom build the house of your dreams. Both of those options come with some pros and cons. In this article, we will explore the pros and cons of buying land to build a house later.
5 Things to Consider When Buying Land
If you are thinking about buying land to build a house on, here are 5 things you should consider:
1. Choosing Your Location for Land
The first point to think about is the location of the land you want to buy. It's important to know the neighborhood, proximity to amenities, and climate of the area. However, what's even more important is to check the zoning laws and regulations for the lot you want to buy. Zoning laws govern what you can do on your land, so it's crucial to ensure that your plans align with the zoning laws in the area.
2. Cost of Buying Land
Buying land to build a house on may cost you more than buying an already existing home. However, it may also be a more affordable option depending on the location and the housing market. It's important to go in with your eyes wide open and consider all the costs involved. These include buying the land, permit fees, builder fees, real estate agent fees, landscaping, contingency fees, changes to the original blueprints, adding utilities, and more. Buying land can be great, but it's essential to budget for all these expenses.
3. Schedule
One of the advantages of buying an existing house is that the process can be relatively quick. You can become a homeowner in a few months or less. On the other hand, buying land to build a house on is not that quick. You should expect the process to take at least 6 months to a year, and sometimes even closer to two years. Be prepared for the time it takes to get everything built and done and be ready to jump through all the necessary hoops.
4. Getting a Real Estate Agent
While not a required step, having a real estate agent can be a smart asset when buying land and building a house. A real estate agent will have knowledge of the city you're trying to build in, potential problems with specific lots, zoning laws in the area, financing and loan options, and more. They can provide valuable insights and guidance throughout the buying process. Consider the added cost of a real estate or land agent as an investment in ensuring a smooth and successful land purchase.
5. Pros & Cons to Buying Land
Lastly, it's important to consider the different pros and cons of buying land to build on. On the "pro" side, you get a lot of freedom when it comes to buying land and building a home. You can choose the location and design of your house, giving you the opportunity to create your dream home. However, on the "con" side, there are numerous hurdles to overcome, such as permits, building codes, scheduling, and costs that can keep increasing. Take the time to understand all the pros and cons and make an informed decision.
Does buying land sound like something you’d be interested in? If you understand all the pros and cons and other factors to consider about buying land and building a house and you're still up for it, that's awesome! However, if you have second thoughts, there are a couple of alternative options you can consider.
Alternatives to Buying Land
One option you can consider instead of buying land is to buy an existing home. This can be a great option with fewer hurdles to jump through.
Another alternative would be to contact Gary from garybuyshouses.com. He can provide you with a cash offer on your house in 5 days or less, regardless of its condition. This way, you'll have the cash needed to explore other options, whether it's renting, buying an existing home, or still considering buying land.
Remember, buying land to build a house on is an exciting prospect but it comes with its own set of challenges. Consider all the factors mentioned above, weigh the pros and cons, and make the decision that best aligns with your goals and aspirations.
