It’s common to pay cash for land. If you’re not planning to finance the land purchase through a conventional lender, which will require a lender appraisal, then obtain your own appraisal to determine an appropriate price before making an offer. Comparable sales are sometimes difficult to find when buying land. Further, some financing will allow for subordination to a new construction loan landscaping company Keller
If the land isn’t located on a municipal sewer system, any home you build on the site will likely need a septic tank, and that will require what’s known as a percolation test, or “perc test,” says Christopher Kershisnik, a realtor with Re/Max Town Center in Germantown, Md.
A “perc test” measures the absorbability of the soil to the liquid that leaves the septic tank. If your land can’t support a septic system, you can’t built on it, and a bank won’t give you a mortgage either. Every state and municipality has different requirements too, so before you buy that plot of land Kershisnik recommends a contingency based on whether the land passes a perc test.
5. You’ll need water too
Also, if it isn’t on a city sewer system, you’ll likely have to dig a well for drinking water, which can cost upward of $10,000 for drilling the well, which typically takes several days to drill the necessary 100 to 400 feet or more, and another several thousand dollars for the water filtration system.
You may also need to add a man-made lake and a hydrant to serve as a rural water supply for firefighters. Add in pumps to get the water to the surface, a tank to hold the water and permitting, and any necessary geological studies, you could be looking at $50,000 just to get water to your land site.
Laws governing land ownership are complex. Understanding land ownership rights and processes can help any prospective land owner avoid the risk of an improper sale, scam, or undisclosed property issue. Before you transfer property rights or possession through any contract, explore these important facts about land titles.
What Is a Land Title?
A land title or certificate of title is a formal document outlining the rights a person or people hold in a piece of property. While commonly used to confirm ownership of the property, a title can also help prospective purchasers and land owners understand more about existing liens, usage rights, easements, natural resource rights, and other rights. If a property title does not list your name, another party may legally own the property.
The clerk’s office at the county courthouse maintains all property records in a given county. The clerk’s office records all legally recognized land rights and ownership transferences. Recorded documents take precedence over informal ones in land disputes. A legally valid land title plays a crucial role in land ownership and usage agreements.