What to Know Before Buying Land in Maryland
Whether choosing a good deal in a stylish new subdivision or an out-of-the-way patch of land to enjoy the countryside, there are important factors you need to consider before buying a vacant property. Buying a empty lot is a different–and occasionally more dull experience– than purchasing land with an existing house. However, if you realize what you’re getting in and the procedure involved, building your ideal custom home from scratch to your own beautiful bit of Maryland can be exhilarating too. In this article we will teach you what to know before buying land in Maryland.
The Lot
Size and shape are only two little factors when it comes to evaluating a lot. Where the lot is located in the country could make the buying experience a vastly different process than purchasing in a different location.
Here are some things that could differ from lot to lot:
Looking at what future construction projects are scheduled in the region may provide you invaluable insight into the long-term worth of the lot. There is also information about environmental factors that might affect your general happiness there.
Restrictive Covenants — Many lots may allow you to build anything you want provided that it meets building codes, but other lots might have limitations. These may be as simple as square footage restrictions or can be detailed as colors you can not paint a home’s exterior. They could also be included to protect environmental or historic components, like property located within the Chesapeake Bay Critical Area.
Soil and Site Evaluation — Also called Perc Tests, these evaluations must sometimes be performed on a piece of property you intend to purchase, particularly if the land is not a part of a pre-planned subdivision. The test assesses your possessions topography, water table, along with other factors to determine the ideal place to put in a septic system. Planned subdivisions will likely have cared for those evaluations before offering the lots available. There are added and often very costly fees if the utilities need to be brought onto your premises.
The Deal
A contract for the purchase of vacant property is different from a contract for an existing residence because it often addresses the problems listed above. It’s a legal arrangement that permits the last sale to be determined by the lot meeting certain conditions when all tests and surveys are finished. What’s more, it might even designate whether the duty of paying for these feasibility evaluations lay with the purchaser or the seller.
A contract may also ask the seller supply:
- A licensed septic system installation permit
- Water quality tests on well water systems
- Hazardous material testing
- Any surveys that may be required to meet underwriting requirements
- A good realtor specializing in property purchases in Maryland will help compose a contract that should better guarantee you’re likely to acquire the sort of land you are hoping to suit your requirements.
The Loan
Vacant lots will typically require a construction-to-permanent loan. These types of loans convert into a typical mortgage after you fulfill certain requirements and milestones. These requirements include closure on the property purchase, building the escrow to build the residence, and meeting government and creditor occupancy requirements.
As soon as you obtain your loan, be smart in picking your bit of vacant property –just as you would when picking an existing residence. Research home values in the areas and have your property publish your MLS listing for homes in the areas you’re thinking about. Should you build a $350,000 home in a neighborhood where most houses are being valued at considerably less, you won’t encounter the growth in value as if you would if you built in a neighborhood where values were comparable or higher.
Should you take each these factors into consideration and consult with a knowledgeable home builder–like the experts at Raphael Homes–buying a empty lot in Maryland will function as positive, rewarding experience it should be.