Buying Land - Answering Your Questions - Part III
1. Do you know what you are buying?
Has the land been surveyed? If yes, have you walked around the land to find the boundaries? If no, has the seller told you what they think they own and are there any markers, monuments, walls, pins, etc. to go by and have you checked with the neighbors to see if they agree? It’s a good way to get to know your new neighbors and to educate yourself on any boundary disputes early on.
2. What’s it going to cost?
The size of the lot, location and amenities will determine the market value of the land. Once you have your home planned out, you’ll need to sit down and talk with a lender about the total costs. Are you going to finance the land or pay cash? How much of your budget can you put toward the land? As a general guideline, 25% will go toward the land and 75% will go toward the home. This guideline may not apply if you are looking at land on a lake or with fantastic views, or building your castle.
3. Now I bought it but they say I don’t own it?
One of the most important details to pay attention to once all of your research is done and prior to buying the property is to know what kind of deed you are getting and to know if the title has been searched. Is the deed a warranty deed, quit claim deed, quit claim with covenants or any other of several possibilities? Each of these deeds offers different guarantees from the seller as to their title to the property. You should always discuss having a title search with your attorney or Title Company as well as the need for title insurance.
Michael Noble
Schiavi Home Development
