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!
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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
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!
Bill Byrd has been a licensed realtor since 1986 and one of his specialties has been in working with land. Whether it’s helping land owners sell or buyers find the right property, Bill has handled it all. When you hire Bill, you can feel comfortable and confident that your working with a true real estate expert that has your best interests at heart!
