When most people dream of building their own home, the first thing they think about is buying land!

Well I’m here to tell you you may want to do a little research and planning first. In this post I am going to share with you several key points you should consider before you buy land to build on. Unfortunately, it’s kind of like the “chicken and the egg”! What I’m about to share with you, may seem like overkill, but if you read carefully you’ll discover why these things are important. Also…keep in mind, you don’t have to do any of these things, if you’re willing to take the risk!

When Your Ready

We’ve made it easy for your to find every property on the market with the pre-built search by area links below!

Things To Consider When Buying Land

There is a lot to consider when buying land! Some things are obvious and some not so obvious. It’s the things that are not so obvious are what you need to understand! Find your lot or land here.

Know What You’re Going To Build

The first and most important consideration is what you’re going to build on the land. Most people start out with the idea that, “I’ve got $100k in the bank, I’ll just go buy a piece of land and we’ll build a house”! People do this all the time and it’s not always a bad thing, just not the preferred route! You really need to know what your going to build first! Check out this post on Building Your Own Home for some great ideas on how to discover this first important step to buying land.

Tip: Know what you’re going to build before you shop for a lot!

Buying Land In The Right Location

When buying land make sure you know the area you’re buying in well. If not, do your homework. Speak to neighbors, go to the local planning and zoning departments, find out what’s going on there. You’ll need to know what’s planned for the area around your property. Are their any new subdivisions approved nearby, schools to be built, waste water projects etc.? The last thing you want to do is buy a beautiful piece of property and then a year later have a shopping center built next door!

Know The Properties Zoning

To most people this may seem obvious but it is often over looked. The zoning of your property and the neighboring properties will determine the density and types of development that will be allowed in the area. For instance, you might buy a nice 2 acre lot at a reasonable price and then build your dream home there. Only later to discover the zoning in the area will allow 4 homes per acre. This could be a small gold mine if your intentions are to subdivide your property and cash out. But if your neighbors have the same zoning, you may find yourself eventually in a sea of homes surrounding your wonderful property!

Don’t under estimate the importance and implications of zoning regulations on your property and the surrounding area.

Buying Land And Natural Hazards

You will also want to know how Mother Nature can impact the land your interested in buying. In the low country around Charleston you have several things to consider.

Wetlands

In low lying areas you’ll need to be concerned about the elevation of the land. If your property has any designated wetlands you will not be able to build in those areas. As an example a 10 acre lot priced at $15k per acre may not be worth $15k per acre if only 1/4 of it is high and dry! You will want to ask if a “wetlands delineation” has been done. Most likely one has not been done. Unless you are buying land from a developer a wetlands delineation most likely will not have been done. Not a show stopper but something to consider and be aware of.

If the seller does not have a wetlands delineation or a survey that shows the area of wetlands on the property. Getting a survey during your due diligence is a must.

Soils

Another important factor to consider in the lowcountry when buying land and building a home are the underlying soils. You will want to have the soil tested to determine if it is stable enough to support the home you’d like to build. The soils in the low country as in most of the south eastern seaboard are comprised of millions of years of sediment from the rivers and oceans. Some of this sediment contains elements of a variety of densities.

It’s best to know what’s underground before you build. However, if you discover that your lot has a less than perfect capacity to bear the weight of a house, their are remedies. An engineer will suggest a range of solutions for your foundation contractor so you can build your dream home on your perfect lot! It may be at an additional cost, but, if it’s where you want to live it may be worth it!

Tip: Don’t buy a lot without testing the soils!

There are two tests most builders use. One is a “Bearing Capacity” test which is less expensive and less involved. And the other is the “Geotechnical Analysis”. Naturally, the bigger the name, the bigger the cost! With that said, the Geotechnical Analysis is a much more involved testing process which requires deeper soil borings. The experts that I’ve spoken with say that the Geotechnical Analysis gives you a much more clear picture of the soil composition of the property.

Flooding

Flooding is simply something we live with here in the low country! Not to understate the importance, you should definitely know the flood zone of your property. The biggest reason is the financial impact and expense of Flood Insurance. A high flood insurance premium could put your dream home out of financial reach! So know your flood zone!

Tip: Always check the flood zone!

Trees

Everyone loves trees! However trees can pose problems when building. In the Charleston tri-county area you’ll need to discover the rules and regulations concerning “Grand Trees”. Typically these are older trees that have a circumference of 24″ or more. Where the problems start is when you need to remove one of these “Grand Trees” to build your home or auxiliary structure! You may need to buy an expensive permit to remove the tree.

The second important concern with trees is their health. You’ll want to make sure you’ll be able to clear the lot of all dead or dying trees. Then, you’ll want to protect the remaining trees during construction.

During storm season, we experience high winds on a regular basis and you need to be confident that your trees are strong. The last thing you want is a huge oak or a tall pine to land on your new home!

Easements And Title

Prior to closing on your property, your closing attorney will do a title search. This title search will research the chain of title for your property to determine if the seller has clear title to sell you. Clear title can sometimes be a problematic issue when it comes to buying land. In all of the original thirteen colonies we had a variety of events that have caused some of our title records to be imperfect.

Heirs Property

One of the biggest issues to be aware of when buying land in the low country is “Heirs Property”. After the civil war many citizens of color where given land in reparations. Unfortunately, record keeping was not efficient at that time. Due to these record keeping inaccuracies during this period, often discovering who the true owners of a property and where its real boundaries are can be challenging. And, since every owner when selling a property has to sign the deed, and the proper legal description is used, showing evidence of clear title is imperative. Bear in mind “heirs property” issues do not effect every property in every area of the Charleston region.

So how does a property become “heir’s property”? It’s actually pretty simple. Over the years as the elders would pass, their properties would be inherited by the other members of the family according to either “a will” or, “intestate succession“. In some cases, the deceased would not have had a will. Over time, as each elder would pass, the list of owners/heirs of these properties would expand. In some cases, this has created problems for attorneys attempting to help the existing owners provide clear title for their sales.

Title Insurance

While important, I will cover the topic of Heirs Property fully in another post. However, anyone buying land in the low country should be aware of the possibility of title issues when it comes to buying “heirs property”. And…even though buyers can purchase an owners title insurance, many title insurance companies will not insure “around” the title defect of “heir’s property”.

Tip: Do not buy any property without buying an “Owners Title Policy”!

A title search will also discover any recorded easements that affect the property. An example would be a powerline easement, an easement to cross the property for access to a land lock parcel or a lake etc. Additionally there are many other things that a title search won’t discover as well. Like, a forgery, an unrecorded easement, lost paperwork, misfiled documents etc. However title insurance will protect you from these unknowns.

Tip: Meet the neighbors around the property you’re considering to buy. Ask them questions about the property and the owners. You may discover some important facts that may not easily be discovered any other way!

Utilities

Also, you will need to discover what city/town or county services are available to your lot. Will you have to dig a well? Will you need a septic system? Is electricity, internet or natural gas available? Make sure if a particular service is important to you, it’s available.

More importantly if they are not available can they be brought to your property and at what cost? Simply making a call to your local utility companies will guide you in the right directions. You may not get all of your questions answered on the first call but you’ve got to start somewhere!

Get A Survey When Buying Land

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Simply put, you need to know what you’re buying! A survey is a complete picture of the dimensional factors affecting a parcel of land. On your survey you may want to have them notate the following:

• The boundaries
• Topographical features and contours
• Tree locations
• Easements and setbacks
• Elevation and benchmark

Tip: When buying land, always get a survey!

Conclusion

Yes your right, there is a lot to know when you are Buying Land To Build On! However, you have help and resources at you disposal. Checkout this post on What to Include in your Offer to Purchase Land.

Please feel free to reach out to us at the Byrd Property Group at 843-790-7000 with your questions. We are here to help and can assist you and guide you through the entire process from start to finish. We have done this many times and know how to navigate these tricky waters!

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How Can We Help You?

Contact us at 843-972-7670

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Buying land and building your own home is the quintessential American Dream! Since our country was first settled, building your own home has been one of the most coveted goals of many Americans. However, this dream, as basic as it sounds is much more difficult than most people realize. So here in this post I’ve outlined several things to consider when pursuing the dream of building your own home.

Plan, Plan, Plan

In my career I seen many people go down this path and come up empty handed or worse losing money in the process. So my goal here is not to discourage you but to help you understand the process. We will look at what’s involved with finding the right property and how to develop a plan for success. From talking with builders to understanding the dynamics of land, I want you to have a great foundation to start. Knowledge and planning will give you the highest chance of fulfilling your dream of building your own home.

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Finding A Lot or Land To Build On!

When you’re ready to begin your search for land, we’ve made it a little easier for you. Check out these pre-built links to every land listing on the market categorized by area.

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Step 1 – Building Your Own Home

Do You Have To Sell Your Current Home To Qualify?

The first question you have to ask yourself is, do I have to sell my home to qualify? Big question! This will tell you if you’ll be able to move straight into your new home when it’s ready? Or… if you have to sell your existing home and move into a temporary rental until your home is built.

Know What Your Current Home Is Worth!

Also, knowing what you will eventually net from the sale of your existing home is extremely important. How much cash/equity can you realistically pull from your current home to put into your new home will be the basis for establishing your down payment and budget. Knowing what your home is worth is an important first step but knowing what your approximate net gain from the sale will be is even more critical.

Tip: Don’t make assumptions on what you might be left with after the sale of your current home!

Contact Us For A FREE, NO OBLIGATION Market Analysis and Net Sheet for your home! 843-790-7000

Step 2 – Building Your Own Home

Secure Financing

Just like buying a resale home, you’ll need to get pre-approved for a lot or construction loan purchase. This is critical to establish your budget. The last thing you want to do is to find a great property and get your family excited about it and not be able to close. Or, you buy a great property and discover you can’t build the home you want within your budget! The last thing you want is to be stuck owning a lot you can’t build your home on! Ouch!

Step 3 – Building Your Own Home

Know The Costs Of What You Want To Build

It is very important to begin the process of discovering the costs of what you want in a home. You probably have a good idea of most of the basics but now is the time to do your research. Having a great real estate agent that knows the building process like our team does, will go a long way towards guiding you to the best decisions. Some resources to check out.

• Go Online and visit Home Plan websites
• Visit Model Homes in the New Communities in your area
• Go to Home Shows
• Visit Home / Building Supply Stores
• Meet and talk with different builders

Know Your Numbers

You’ll want to get a good idea of how much your home will end up costing before you hunt for land. For instance, if your total budget for a house and land is $450,000., and your house is going to cost $350,000 to build, you’ll need to find a lot of land under $100,000.!

I’ve seen to many people do this backwards. They will put a lot under contract and then discover what they want to build puts them way over budget and they have to back out of their purchase of the lot. Or worse default on the contract and lose there earnest money deposit. Additionally, some folks get so far into the process that they will have spent money on home plans, survey’s, soil reports and more! It’s a shame to watch this happen. Especially when we know, we could have helped them plan and avoid these losses.

Planning to build a house can be time consuming and expensive. But in the beginning, if you put in the work, your efforts will payoff!

Step 4 – Building Your Own Home

Make A Checklist

Determine the basic requirements for what you will need in your home. You can take this a far as you want. But at least make sure the big items are covered.

• How Big Do You Want Your Home? Square Footage Required?
• How Many Bedrooms and Baths
• Do You Want An Attached / Detached / Side Or Front Loaded Garage
• Do You Want A Swimming Pool
• How Big Of A Yard Do You Want
• What Type Of Siding Do You Want
• What Type Of Foundation Do You Want
• Etc.

Step 5 – When Building Your Own Home, Should You Have A Home Designed or Hire A Builder?

Have A Home Designed

You might want to take this as far as having a home designed in advance by either a builder or a home designer/architect. However, this can be relatively expensive. So my best advice would be to discover a basic range of the cost per square foot for homes like you want in your area. Once you have this number, you can use that as a reliable gauge.

Tip: There are a few things to keep in mind if you visit new home sites where “production” home builders are building. Builders like Pulte Homes or Lenar that build in high volume can build homes for less money than you will be able to. Since they build so many homes, they benefit from the economy of scale. They receive bulk discounts from their suppliers and contractors that you won’t be able to get. With the biggest advantage being the cost of the land they build on. These large builders either buy land in bulk from developers or develop the land themselves. This gives them a huge pricing advantage in the market! A homeowner building a single home just can’t compete.

Meet With A Builder

A less expensive alternative than having your home designed in advance, is to meet with a couple builders. They should be able to give you an idea of what the home you envision will cost. They may not be able to give you and exact cost but should be able to share with you a cost per square foot range. Typically, this figure will not include costs for site preparation, tap fees, well and septic, clearing, fill dirt, permits and many other variables that may be required for the eventual site you choose for your home.

Tip: You may have to pay for an estimate or hire the builder before they will put long hours into your plan or estimate!

Building Your Own Home – Conclusion

Keep in mind as your wish list grows so will the price. And you may end up very surprised at the cost of a home with all of your “have to have” items. Understand that it is very common for people to make compromises due to cost considerations. And, if you discover you can’t build what you want, it’s better to find out early in the process rather than after you have closed on and own a lot.

So once you’ve completed your initial research and discussions with prospective builders, now you’ll have a better idea of how much you can spend on your lot.

So now you can go shopping for land with confidence. You know roughly how much your dream home will cost and know how much you can reasonably spend on a lot!

What’s Next?

Check out this post on Buying Land To Build On!

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Have A Question?

Contact us at 843-972-7670