The thought of starting fresh appeals to many people. A new home, a new neighborhood, and a new beginning. Sometimes starting fresh could even mean buying a vacant lot and deciding to build and design your home from scratch. This can be risky, but it is one way to make sure that you get placed in your absolute dream home.
Buying a vacant lot is very different than buying a home that is already built. The key to avoiding losing precious time and money is RESEARCH, RESEARCH, and MORE RESEARCH! Do not buy the first lot you see. Look into how long it has been on the market, who is selling, the price, as well as several other factors.
When you go to check out a vacant lot for sale, check with city and state regulations and codes to make sure you are allowed to build on that land. Unless you are planning on staying there until you die, make sure you do not choose a vacant lot that is going to be impossible to sell once you decide you are ready to move on. If the land is ridiculously cheap, there must be a reason.
If you are interested in moving out somewhere desolate and isolated, make sure that you can still have access to anything that you may need while living there. That means making sure you can hook up electricity and running water. A house loses a lot of its appeal when you travel back over 100 years as soon as you step on the property. And no one wants to go to the bathroom outside.
How far away is the lot from the nearest grocery store? Unless you plan on growing all of your own food, the grocery store is something you will have to go to AT LEAST once per month. And of you do plan on growing all of your food, make sure there is fertile land on the property. If the land was used previously for many years to grow crops, all of the nutrients in the soil may be dried up, so make sure you know the history of the land as well.
Being close to a grocery store is not the only thing that you have to be worried about. You may also be needing to be close to doctors’ offices, repair shops, and any other store you may need supplies from. Making sure that your newly purchased lot has access to roads is also important, because not only do the builders and construction workers need to come and go, you do not want to be trapped on a dirt road if there is flooding or massive rainfall.
In order to build a house, there are tons of permits that you will need to get as well. You will need to get building, electrical, plumbing and mechanical permits.
Real estate investment
Investing in a home that is already built can take a lot of the stress away that would come with building your own home. Unfortunately, there are many risks associated with buying a home that are important to consider before one decides to invest in real estate.
An old home may appear to be structurally sound, but there are loads of people that you can hire to make sure there is no mold or decay in both the foundation, the walls, and the ceilings and floors. You can also get someone out there to determine if there is water damage in the home from leaky pipes or flooding. If there is, that is something you are going to want to work out with the seller, and if they are willing to fix it before you buy, or if they are willing to go down on the price.
When you invest in a home that you intend to rent to others, there is a level of cleanliness as well as functionality that is expected. If the floors are really old and scratched up, they may cause splinters and may need to be replaced. The fireplace may seem like an added amenity, but in fact can end up costing you hundreds when you go to clean and use it.
It is also important to remember that all the appliances in the house are staying there. This means the fridge, the oven, and the microwave need to be replaced out of your pocket if you do not thing they are working properly. My parents recently sold their home and actually replaced all appliances before putting it on the market to give the house a more modern and functional look.
Is the garage door functioning? Do the windows need to be replaced? Do you need to update the lighting, or the paint on the walls? Do you need to get the carpets replaced? Does the exterior need to be power washed? If the person selling your home is smart, they will have done these repairs themselves and then increased the selling price. If they cannot afford it, then you should ask them to factor in the cost of all repairs and then subtract that from the total cost of the home. If they will not agree, then maybe purchasing the home is not worth your time and money.
With a large growth in real estate development and investment in the past few years, people are becoming smarter and smarter when it comes to buying and selling homes. It would be very disappointing to buy a house at a great value, and then learn that you have to put in the same amount, if not more, on repairs and remodeling. That is why the most important thing for you to do as both a seller and a buyer is to DO YOUR RESEARCH!