When it comes to constructing a home, land can be a make or break item. You can spend between 15 and 50 per cent on this single item. Some pitfalls should be avoided when it comes to rural and undeveloped areas. The same is also true when buying land in a developed area.
There’s only one question you should ask the seller when you are thinking of buying land;
The Ultimate Question
Start by asking, “how do you know that this land is suitable for building a house?” this may appear to be a simple question with an obvious answer. But why is it the best question to get things rolling?
The answer to this question will tell you if the land is viable for your home building project. It will also help you know where to start your due-diligence investigation. You might even expose any potential trouble spots.
What You Can Infer From The Answer
If the seller responds with “I don’t know,” it’s likely they never looked into the land’s suitability to home-building projects. This means it might be fine. The property could be zoned for categories that preclude homes; it could be on a flood plain as well. You’ll need 30 or more days to investigate all these things.
If the seller answers in the affirmative, it means they did proper investigations. However, the seller still needs to provide evidence of the suitability of the land to the intended use. He or she will also need to provide a list of concerns raised during the investigation.
Whichever the case, you still need to do due diligence. You can begin by verifying the completeness and truth of the seller’s claims. The answer you receive will give you the point at which you can start your investigation. If there are any red flags, You might have to dig deeper into anything the seller shares with you from this point.