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  • Land Purchase vs. Home Purchase

    Wednesday, January 17, 2018   /   by Dane Carlson

    Land Purchase vs. Home Purchase

    Land Purchase vs. Home    

         You have spent months looking for just the right home and just can not find it! Many buyers and multiple offers seem to be present on absolutely every home you like. The prices seem to get higher and higher, and you just cannot justify what the home will cost with all of the concessions and compromises you would have to make for those homes. Sound familiar? If this is your story, perhaps its time to think about buying land and constructing your own home. 

        Over half of the calls and inquiries we get are for folks that find themselves in this category and are calling to find out about available land parcels. You need to be cautious and aware of all the requirements and costs involved, but the rewards and personal pride that comes with designing and building your own home will last you a lifetime. Our area is loaded with great parcels of land in virtually every corner of our community. Views, space, horse facilities, 4-H projects, vineyards, groves, open space and a multitude of other possibilities could be yours on the right parcels. Also, many architectural styles could be yours to create the home and destination of your dreams. Now that all sounds good, but what in the world is involved and what do I need to look out for when I consider purchasing land. Let's discuss some of the steps and costs involved.

        First of all, it's important to be realistic about what your total finished budget can afford for your finished home. Factors that will affect the total cost in addition to the actual land purchase and building cost include the following and could be more. Percolation tests, septic systems, water meter, electrical hook-up, other utilities, Traffic Impact Fees, High School Fees, Permit costs, engineering costs, grading costs, stormwater management plans, and architectural costs. They can add up and must be considered in the overall cost expectation. In order to manage all of these costs and also to get a good outlook on the process, it is best to interview and decide on a builder to assist with this process. Our area is also full of several qualified, active builders to choose from. This is always a valuable step because you want to make sure you are acquiring the right parcel to develop the home you want, and a builder will be able to visit the site with you and make sure you and not setting yourself up for disappointment.

         I would also say the most important factor in considering a land purchase is making sure you are selecting the proper agent or team to represent your interests. There are several necessary steps to know in negotiating the proper land contract that agents only familiar with home sales are just not aware of. You need assurance your contract has you protected and has all the proper verbiage and requirements. They will also be a great source for directing you to potential chosen contractors, engineers and surveyors to help you decide who will be best for your job.
         Acquiring land for holding, or for the building process which could take approximately 8 to 12 months from start to finish could be just the right decision for you. You can take your time to plan, enjoy weekend outing or campouts, and have a wonderful project to look forward to completion while involving your entire family in design decisions and property improvements. 

         With over 67 years of combined experience in land sales, site development, investment real estate and home sales, Kim Carlson and Ken Follis Real Estate Group are the right choice for your land acquisition. They have helped many clients purchase their dream parcel and put them in touch with local builders to have their custom homes built. Our wonderful community includes many of those families.  To get in touch with them to answer any questions regarding your potential land purchase, you can reach Ken Follis directly at 760-803-6235. With many lots to choose from, you can visit their website at KimandKenRealEstateGroup.com