What is so exciting about buying land and building one’s own house, is that the Buyer of the land gets to build and live in their dream house and not somebody else’s house that forces the Buyer to compromise his or her dream.
But in pursuing this dream, Buyers must understand that all land is not created equal. In terms of geology, history, views, curb appeal, location and current and potential value, even similar pieces of land can look very, very different on paper. Whether the Buyer is shopping for a piece of land for a house, a ranch, a multi-unit complex or a new housing development, it is critical to understand that a piece of land is not just a piece of land. Equally, marketing vacant land is not the same as marketing homes for sale. The audience is different, the media is different, and the approach is different.
If the Buyer is not paying all cash, then financial pre-approval can make the difference between getting the land the Buyer wants and losing it to another Buyer. Pre-approval gives the Buyer a very clear picture of their financial readiness; it allows them to preview land in a realistic price range and make an offer confidently when they find a desirable and vacant lot. It will also allow the real estate agent to negotiate on their behalf from a position of strength.
Real Estate law is extensive and complex. The Land Purchase Contract is a legal and binding document. An improperly written Land Purchase Contract, may cause the sale to fall through, cost the Buyer dollars, time, unnecessary headaches and in a worst case scenario, a lawsuit. It is important that the Buyer and their real estate agent fully understand the Land Purchase Contract and the process that they are agreeing to and signing off on, so as to conclude the land sale transaction in a smooth and timely fashion.
Buying land is an educational process and the Buyer must participate fully in this process. The main roles of the real estate agent are to co-ordinate with and provide access to the land, for both Buyer and the Buyer’s hired professionals, i.e. geologist, soils engineer, civil engineer, surveyor, architect and general contractor, amongst others, so as to complete their due diligence and provide written reports for the Buyer so that a informed and educated decision can be made by the Buyer before deciding to purchase the vacant lot.
This is a rare time in our Real Estate history where vacant land is so well priced, thereby creating incredible opportunities for people who wish to buy a vacant lot, build a home that they desire or simply ‘cure’ the lot and hold on to it for a future sale. Buying land and building a new home, like anything else, is a process or better still a road map – to when the Buyer first walks onto that vacant lot until they turn the key in the front door of their brand new dream home. The land buying process seems daunting at first but supported by the ‘right team’ so-to-speak, will bring rich rewards at the end of this process.
With so many fabulous new and interesting building concepts nowadays, on how to be creative, build smart and efficiently and with state of the art technology, now is the time to buy land and Just Build it!
I have been a realtor and real estate land specialist in Los Angeles for the past 15 years, creating opportunities for land-owners and Buyers by brokering vacant land throughout the Greater Los Angeles area. I can be contacted at sales (at) westsideland (dot) com and information can be obtained from www.westsideland.com