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Buying a Land Price Existing Waste Water System
    Zoning and Restriction Neighborhood
    Selection of Your Land Topography
    Accessibility Encumbrances
    Soil Condition Land Selection Worksheet
    Water Table   Worksheet


PRICE

The price of the lot is the principal financial factor. It is determined by the lot's location, size and property taxes. Technical factors include the availability of municipal sewer and water lines, the level of the subsurface water and the water table; the grade slopes; the quality of the bearing soil; and whether or not the lot is located in a flood-prone area.

Other factors are the quality of the neighborhood schools and colleges, the nearest shopping center and supermarkets, social clubs, houses of worship, mass transit systems and highways, as well as theaters, beaches, parks, public swimming pools, and golf courses. Legal considerations in lot selection include ownership, type of deed, deed restrictions, and easements and encroachments.

You can find lots for sale through

  • Real-estate agents
  • "For sale" signs posted in front of a property or along roads and
    highways
  • Local newspapers
  • Friends, relatives and coworkers
  • Developers and builders

When considering a lot, you should estimate how much money to allocate for buying the lot and how much for the construction of your home. The ratio between the price of a lot and the total cost of the house depends on the market conditions and the location. Land is cheaper in rural than in urban areas, hence the price of the lot as a percentage of the total cost of the house is likely to be less in rural than in urban areas.

In comparing lot prices, remember the cash price is not the only consideration. If the land is rocky, wooded or steeply graded, it will be more expensive to build a house. Another financial consideration is whether the land has municipal sewage disposal and water on-site. If these need to be added, the building costs will rise. And, don't forget to check the title deed and transfer taxes for the plot.

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