Buying Land is a Team Effort!
Buying land is not as simple as buying a house or an apartment in town. There are quite a few more things to consider, and challenges that might come your way. You will need help from people with specialized knowledge to make your land purchase a success.
In this article, we will talk about the 5 main team members you will need when buying land in Texas!
- Your Partner
Who do you turn to when you have a big life decision ahead of you or a big goal or project you want to accomplish? The first person you might turn to is your spouse or family members, who are probably already very involved in your plans to buy a piece of land. However, the partner you have on your team could also be a close friend or business partner whose opinions and insight you value. By involving your partner(s) upfront when contemplating what you are looking for in a piece of land, you can use them as a sounding board throughout the land buying process when questions or challenges come up.
When looking at land for sale, you need to consider not just the cost of the land itself, but also the costs of building a home or any other structures on the property. Financing a land purchase will not involve a standard mortgage, and many mainstream banks don’t offer land loans. You will likely need to approach a specialized mortgage broker who will source financing from land or agricultural banks. A specialist lender will offer mortgage products designed for land purchases and will also be able to advise about special programs or tax rebates that might apply to your land purchase.
3. Real Estate Agent
It is vital to have an experienced and specialized real estate agent by your side. Not all real estate agents are experienced in brokering all kinds of properties. When buying land, you are faced with a whole other set of questions – land use and zoning regulations will impact how you can develop a piece of land. What about soil types and water rights? How can you get utilities hooked up, and what will that cost? The average residential real estate agent does not know about these things. In short, look for an agent who has a dirty pair of boots and a hat in the car!
Try to get the current landowner on your team as well. They will know their land, the weather, and the conditions on the ground. The current owner also knows the area, the community, the neighbors, and who the utility providers are. It certainly isn’t necessary to make the landowner your new best friend, but it is important to have an open line of communication, either directly or through your real estate agent.
Whether or not you need a builder will depend on how you intend to use the land. If you are planning to build a home, or any other structure on the land, involving a builder early on in the process is a good idea. You probably have no idea what it costs to build a home, or if there will be particular complications when building on a particular piece of land e.g. the soil type, whether construction vehicles can easily get onto the site, or even where it makes sense to build a house on a piece of land.
Good luck with your land purchase. We think it’s a great idea to buy land in Texas, and we’d love to be on your team!