It is tempting to think that the purchase price is the most significant expense when buying land. After all, if you pay less for land, it must be a good deal, right? Not always. The true cost of land includes unseen expenses when your intention is to build a house on that land. Some of these hidden costs can be easily accommodated while others can be detrimental to the success of the build. Sometimes significant costs have already been paid and are included in the cost of the land. It all depends on the land you choose. For example, here are some of the most common costs you will want to verify BEFORE you commit to purchasing the land:
- Is a survey required?
- How steep is the lot and how will this affect grading and foundation costs?
- What are the site drainage requirements?
- How much is it to connect power?
- Is municipal water available? If so, what does it cost to connect and what is the assessment?
- Will a well be needed? If a well is required, what is the estimated depth and cost to drill?
- Is public sewer available and if so, what is the assessment that is required and what is the connection fee?
- Is a septic system required and if so, what type of system must be installed and is there sufficient space for that system?
- How much clearing is required and what will that cost?
- How long of a driveway is required and what type of driveway is required (paved, pervious concrete, gravel)?
- How much is a building permit, assessments, and impact fees in this jurisdiction?
- Is a fire sprinkler system required at this location?
As you can see, there are many factors involved in buying land to build a house. While the real estate listing for one piece of land may be higher than another, in the end it may actually be less expensive due to these factors!
All of this might seem overwhelming, but Suprema Homes can help you navigate land purchases successfully. Our partners and lenders can provide the expertise you need for success. For more information Contact us today.
See: What is feasibility and why should I care?
