In the current Colorado real estate market, many buyers are considering the option of buying vacant land to build their dream home. These buyers love the advantages of getting a custom home built to suit their needs. However, the process isn’t as easy as picking a spot and hiring a contractor. Your land and building plans must meet certain specifications before you can begin construction. Here are some of the most common questions and answers about buying vacant land to build.
How Should You Pay For Vacant Land?
Whenever possible, it’s advantageous to buy vacant land in cash. Mortgage lenders are less likely to loan for undeveloped land because there are many unknowns about whether the land is suitable to build and host amenities. Additionally, if you pay for land in cash, lenders are more likely to finance the construction process, and you can transfer that loan into a traditional mortgage when construction is complete. The exception to this advice is if you buy a lot in an area where many homes already exist or are being developed because the other homes act as proof of concept.
Should You Use a Real Estate Agent When Buying Land?
Find a real estate agent who specializes in all types of land for sale Colorado has to offer. A knowledgeable agent will understand the area and help you find somewhere suitable for your dream home and lifestyle. Furthermore, a real estate agent will put contracts in place to protect your interests if you find out the land isn’t suitable for construction, the authorities do not approve your building permit, you can’t get water or electricity to the property, and more.
Is It Cheaper To Buy Land and Build?
Especially when it comes to houses and land for sale, Colorado has a tumultuous real estate market with a strong recent past, so you want to get the most out of your investment. To understand whether buying land and building is the best option for you, start by looking at the value of the surrounding homes. Then, consider how much money you want to put into constructing your dream home. If the latter is much greater than the former, you may want to find a different area to purchase your land.
Talk To a Local Real Estate Agent About Your Plan
Before you embark on your land-buying journey, talk to a Colorado real estate broker about your ideal home, construction plans, budget, and needs. We’ll help you find land that meets your requirements and sort through zoning restrictions, homeowner’s association rules, and other things that may affect your purchase. If you’re looking for land in Western Colorado, you can find my contact information below.