What to Understand When Buying Land

Are you giving some serious consideration to buying land? Are you looking at purchasing a track of land or just a lot to build a single family home? Will you need to get a land loan? Whatever ever circumstance you are in it will be imperative to understand exactly what you're purchasing. A land transaction is far different than buying a home. Understanding what to know about buying land is critical so you don't make a bad financial mistake.

The financing with buying land is also very different from a house purchase. What you will find out right away is that the down payment requirements are much different. In most circumstances you will need to put a more significant percentage down then when buying a home.

In the article at Maximum Real Estate Exposure, you will not only get a ton of information on how to finance a lot but also some of the vital things to check out before committing to a land purchase. Here are some quick example of things you need to know when buying land:

• Is the lot service by a septic system or town sewerage?
• Does the lot have public or private water?
• Is the land located on a town approved road?
• Are there any wetlands that would require conservation approval in order to build?
• Is there any requirement to have flood insurance on the property?

These are just a few quick things mentioned in the article. These items, however, are just scratching the surface. You should never go into a land purchase without knowing exactly what it will take to get full approval on having a buildable lot. Some people have no idea and purchase land without having approvals in hand. Doing so can be a critical error.

If you or someone you know is considering buying a lot to either hold onto the land for a while or to eventually build a home, please pass along this information. Buying land is very tricky. It always makes sense to either have a builder or a real estate agent who is well versed in new construction helping to guide you during the purchase.