12 Points to Keep in Mind Before You Buy a Lot to Build Your House

Whenever the topic of buying land comes up, I can’t help but hear the lyrics of the song “Green, Green Grass of Home” inside my head. If you have decided to build your own home either in the country or the suburbs, then finding the right building lot is a critical early step in that process. While budget is always an important factor in any purchasing decision, you should also consider these buying tips when evaluating the suitability of a land plot to build your home.

1. Check if the property has passed local zoning requirements.

2. Ask if the community or city sewer and water connections are already available on the building lots where you want to build your home.

3. Look for a copy of restrictive covenants especially if the building lot is still in development. This will tell you and your architect if there is a restriction on house size or any other limitations.

4. Avoid land lots near non-residential property zones. You don’t want factories for neighbors in the near future.

5. Go to the local police department and check if the zone is prone or not to crime. The safety of the location is just as important as the attractive view from within the house. This also involves the wildlife where coyotes, dogs, wolves or snakes can be dangerous especially when you have kids.

6. Realize what you could be trading exhaust fumes with. Check with the local government or future neighbors if there are pig farms and the like within the area.

7. Make sure that phone service and electricity are already available before you build your home.

8. Find out if the houses within the area follow any deed restrictions. You should check with the local building officials to see if there are any specific house or blueprint requirements.

9. Check with the local authorities if your land is stable. Make sure that your building lot is not a candidate for landslide.

10. Ask if there are any restrictions to hiring any builder on the lot. There are communities or subdivisions that are limited to hiring specific builders.

11. Asses the location of your future home. Is it still accessible to church, school, groceries, gas stations, and hospitals? Consider the places you often spend your time with your friends or family. Is it near the library, golf course or the health club? Also keep in mind the people who may want to visit you from time to time and the accessible ATM or banks for emergency purposes.

12. Check for winter road services and any driveway restrictions too. If the lot you wish to purchase is far from the road, as if you can build your own road extension and the charges that may cost you. Building a road extension can be very expensive especially when you have to build a bridge over a stream no matter how short this may be.

If you receive acceptable answers after following through on the tips above, you should have found yourself a building lot that will result in far fewer surprises for you in the future.

In a future article, I will discuss tips to consider when selecting the right house plan blueprint for your particular building lot.

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Pardee Homes just made a really tough decision. Their Sacramento development has halted. Building crews have been let go and “deals made with only four buyers canceled” reports Jim Wasserman of The Sacramento Bee. The company has invested $200 million in the region and says it’s not shutting down for good. David Ragland, chief of Pardee’s Sacrament division, told Wasserman that “We plan to re-emerge and reopen in a year or a year and a half in a market with less competition.” I want to be the first to congratulate them on the right decision.

Layoffs and closures are never fun. Many people lose their jobs and the good that the company could have done for an area turns into nothing more than a vacant lot. However, Pardee Homes has, so far, stayed committed to the region with plans to develop when the market is healing itself. With a recently reported 8.5 months worth of new homes available for sale on the market, the last thing we need is for builders to keep going, even if they are making some kind of profit. The sooner we fix the over supply problem, the sooner the market can recover.

A large factor in the whole housing crisis has been shifty dealings in selling homes and subprime mortgages. Lenders and builders have put themselves in a desparate situation, and dishonesty is likely to occur when builders keep adding to the over supply and the pressure to sell. This is very bad for the market and will only bring harsh ramifications for the buyers and the sellers. So good job Pardee. You made a tough decision, but a good one.

On a hopeful note, the lending business is under stricter scrutiny and legislature is in the works to force a higher standard of ethics. The credit crisis (lenders inability to lend due to an inability to collect) will still see darker days before any improvements, but positive government influence could very well turn the tide. Now, if only we could get these big publicly owned building companies to slow down a bit more…

HousePlans.Info: The latest trends, observations and opinions on all things related to house plans, home design and home building.

Hank Paulson, the US Treasury Secretary, has just made some alarming comments on the housing crisis. He remarks “Let me be clear, despite strong economic fundamentals, the housing decline is still unfolding, and I view it as the most significant current risk to our economy,” and that “The longer housing prices remain stagnant or fall, the greater the penalty to our future economic growth.” He has made several calls to action, but for now, no concrete plans have been issued by congress or the president. Most blame deceptive mortgage loans and over-zealous builders. Supply is starting to exceed demand.

Consumers have a lot to do with the current situation. After all, we ultimately control the economy. Hasty decisions about mortgages and the urge to build bigger and better have combined to create a foreclosure rate that is currently 50% higher than two years ago. Reported “ghost towns” have begun to develop and values are dropping.

My suggestion… First, don’t depend on the banks to be honest about your mortgage. Read the fine print. Consult a neutral third party if you must. Make sure you are aware of any variable rates and possible rate spikes. Second, don’t build so big. Build smarter. Find a good plan and customize it, or hire a designer. Spend more on planning and less on mistakes. Third, go green. If you want to save money in the long run, and be able to afford those mortgage rates, then start with energy saving products and building techniques. Here is a great resource: www.greenandsave.com (look for the ROI, or Return On Investment, numbers). Another: www.buildinggreen.com (these guys don’t accept advertising, so they’re great).

You may have a dream of owning your own home. Not buying an existing one, but owning one built just for you. The ‘crisis’ doesn’t change that. You still can. Just play it safe and build smarter. You’ll obtain your dream and support the market. After all, you ultimately decide your own economy.

source: The Associated Press used by Fox News – http://www.foxnews.com/story/0,2933,302194,00.html

HousePlans.Info: The latest trends, observations and opinions on all things related to house plans, home design and home building.

I was disappointed to read an article titled “Developers helped build a bust.” According to Mara Der Hovanesian of BusinessWeek, many developers began selling mortgages as well. They ended up misrepresenting clients’ income to sell their homes at higher prices. This has ended up in virtual ghost towns as foreclosures soon became the only option for hundreds of “homeowners.” What a wasteful mistake.

Alex Wilson, author of “Your Green Home,” states “The average US home has more than doubled in size since 1950, growing from about 1,000 square feet to 2,340 square feet in 2004.” This is despite shrinking families. One of the problems I have seen as a sales representative in home design is that people are too concerned with a big house. They squawk at every price, even when I’m saving them money, suggesting a very tight budget. Not only is this financially unwise, but a bigger than needed house is a blatant waste of time, money, and resources, especially if it ends up in foreclosure.

Wilson also states in his book that “Downsizing the house allows you to incorporate higher-quality products, additional amenities, and a higher level of craftsmanship.” A smaller home requires more spending in better, more efficient design. However, this pays for itself by simply building smaller. You’ll spend less to build it, and you’ll spend less to maintain it. This will open up money for even more money saving expenditures like solar or wind power, energy-star rated appliances, and higher R-value insulation.

Wasteful spending may seem luxurious and even smart (if you’re playing the real estate market correctly), but it is nonetheless wasteful. Smaller, more efficient design is the answer to our budgets and the natural environment. Let’s not kill our economy and our resources with one punch of mass foreclosures.

HousePlans.Info: The latest trends, observations and opinions on all things related to house plans, home design and home building.

I was watching one of HGTV’s shows called Dream House or maybe Dream Home. The show is about a couple who are making a huge addition to an existing house. It looks like it will be a beautiful house when all is said and done. However, the couple is in way over their heads. The house just barely got a roof and they’re already $50 k over budget. That’s out-of-pocket expense for them. Now they are in a battle with their contractor. He doesn’t seem to have any answers for them other than “it happens”. They are putting in a lot of work by themselves to save money. Then what really boggled my mind is they went kitchen shopping and chose the most expensive kitchen money could buy (the kitchen is the most expensive room in the entire house). I can’t beleive they didn’t plan for extra expenses in their budget. I also can’t beleive they then, knowing about the $50 k out-of-pocket expense they had to cover, bought a rediculously expensive kitchen. If you’re planning on building, make sure you have room in you budget. Make sure you discuss what could happen with your builder so you can have a comfortable cushion between you and broke. About the kitchen… I don’t know, but be smart about it!

HousePlans.Info: The latest trends, observations and opinions on all things related to house plans, home design and home building.