When someone is a land buyer, they are interested in purchasing property that can later be developed for use as a home or other type of building. Before buying land, a person may want to consult with real estate professionals who specialize in this area and a land planner whose job is to evaluate a piece of property for its potential for development. Purchasing land requires different considerations than a standard real estate transaction, including environmental testing and surveying, zoning laws and the availability of water and electricity.
The main way to Michigan land buyer is to obtain a mortgage. Unlike the typical home loan, a land mortgage requires a much higher down payment or deposit because there aren’t any existing buildings on the land to protect the lender’s investment. Those seeking to purchase land should compare mortgages from several different lenders before settling on one, as the terms and conditions for these loans can vary significantly.
Land buyers might also be able to obtain seller financing, which allows them to avoid the costs associated with getting a mortgage and can allow them to make a purchase with less money upfront. Those considering this option should consider the seller’s motivation and be prepared for a long-term commitment, as most seller-financed deals require the buyer to agree to a wrap-around land contract that keeps the seller paying their own mortgage while giving the buyer equitable title to the property until the debt is paid in full.
Before committing to a land purchase, a person should take the time to visit the property at different times of day and observe how the neighborhood is. Listen for noise from nearby highways or railroad tracks and pay attention to whether locals at the five-and-dime or diner mention dumping sites or drug dealing on or near the property. A person should also consider the soil composition, access to public roads and utilities and how much space they need for their planned development.
When a person is ready to buy land, they can find plots that are advertised on the market in magazines and online, as well as through real estate agencies. However, it is also possible to purchase land that isn’t “on the market” by contacting a private owner and offering them an appropriate price.
Those planning to build on the land should check with a reputable architect, engineer or general contractor for advice. They should also get an appraisal from a professional and consider the potential for drainage issues and septic systems. If they are purchasing an unimproved piece of land, it might be advantageous to look for lots that already have water, sewer and power hookups in place to save time, money and hassle. In some cases, these services can be provided by a public utility company for a fee. Then, the homeowner can move into the new home with confidence. Lastly, the buyer should check with local service providers for recommendations on contractors and suppliers to help them get started on their project.