9Homes in Asheville NC, Hickory NC, Greenville SC, Denver NC, Spartanburg SC, and more.
Land Buying Guide
when buying land that you want to build a house on.
Know the 28/36% rule
Mortgage lenders use this guideline to determine how much home you can afford. It means that 28% of a family's pre-tax income is the max amount they can spend on a new mortgage. The second part of the equation means that your debt should not exceed 36% of your pre-tax income
- Have a surveyor look at the property.
- Identify boundaries.
- If in a neighborhood inquire about covenants and restrictions
- Verify availability of water
- Verify with county feasability of septic or sewer options.
- It is common to dig test holes for septic to inspect soil conditions.
- These soil conditions for septic may also affect the feasability of foundation for home.
- Consider road access and utilities for the property.
- Sometimes an easement with a neighbor is needed.
- Don't make assumptions about the property.
- Verify zoning classification of the land.
- If a change in classification is needed don't assume it will be possible.
- Ensure you pay for all environmental tests the county or city requires.
- Research the value of neighboring properties.
- Don't go talk to the neighbors.
- Sometimes sharing your dream with neighbors while collecting information
- can lead to organized opposition or may inspire a person with the means to
- swoop in and purchase your property before you can secure a contract.
- Commonly real estate is promoted with potential to be sub-divided but this is not always easy or possible.
- Verify everything your Real Estate Agent tells you.
- Ensure that your finances are in order before talking to a lender.
- Proof of funds is a common component before making any cash offer on property so be realistic.