The Guide for Buying Land and Where to Build?

Buying Land to Build a House

If you’re starting from scratch, the first thing you need to do is buy land, which can be a simple process – or prove fraught with problems if you fail to do your due diligence. Be sure to follow these steps before you close on a plot of land.

Check the zoning and condition of the property. Few things will be more disappointing than buying the perfect plot of land for your dream home, only to find out that it’s not OK to live on, either due to zoning issues or soil contaminants that make living there a hazard.

In a highly populated area like Los Angeles, most buildable land has already been developed, and the few patches left are hillsides. “I see people here in Los Angeles who [say], 'I love this hillside, this is just so charming.’ They buy it, and then a few years later it goes back on the market because they realize they can’t build on it”.

Check the zoning, grade and soil quality, as well as other details specific to the area that may keep a house from being constructed on the land. Even if there’s an existing home on the property, it’s important to check, as zoning or soil quality could have changed since that structure was built. A real estate agent familiar with buying land can help you with the due diligence process.

See if utilities are hooked up. Undeveloped, vacant land or a dated house may need additional work to enable it to reach utilities, including electric, gas and plumbing. “What are all the burdens that are going to be on you? Maybe there’s no sewer".

If utilities are not available or old plumbing needs updating, factor the additional work into your budget. This can be pricey: A sewer hookup, for example, may even require construction on the street in front of the property, which requires additional permits and more money.

Demolishing an existing structure. If there’s a house or other structure on the property that must be demolished, you have a couple of options. A mechanical demolition with excavators and heavy machinery will take a house down the fastest but cost more, while a smaller-scale demolition by hand will be cheaper but require more time.

Before you demolish anything, it’s best to select a team of professionals to build your house. In many cases, a design-build firm may want to retain a portion of the structure and can help oversee the demolition.

You may need to hire a separate contractor who specializes in demolition as well. A contractor can manage details to ensure utilities are shut off for demolition, you've secured the necessary permits and you've notified the local fire department.

How much does it cost to buy land to build a house? The cost of land varies widely based on the size of the plot, where you live and if there’s already a house there. When a house exists on the property, keep in mind that you typically won’t be able to pay the land value only. The existing structure, regardless of its condition, is considered an improvement on the land and is factored into the overall value. That said, a seller desperate to close on a deal will likely consider lower offers knowing the property is a teardown.

At the end of the day, demolition of any kind is a big project that can come with a hefty price tag. The average house demolition costs $18,000,  but it depends on the size and location of the property as well as the experience level of the contractor.

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Where to Build?

You're building a house. Which do you do first? 1. Select a style and a plan OR 2. Select a building lot?

Both approaches have merit. If your heart is set on a Spanish style adobe home, a heavily treed lot may not make sense for you. Having an idea of the architectural style you prefer will determine the size and characteristics of your building site.

You may run into problems, however, if you select a specific floor plan too soon.

You can always design a home to suit a landscape, but you may not be able to alter a landscape to accommodate the specifications of predetermined house plans. The configuration of rooms, the placement of windows, the location of the driveway and many other design elements will be affected by the land you build on.

Questions to Ask About Your Building Lot

Once you have located a promising building site for your new home, spend some time on the building site. Walk the full length of the building site at different times of the day. If you are a follower of feng shui, you may want to think about the land in terms of its ch'i, or energy. If you prefer a more down-to-earth evaluation, think about ways the building site will influence the shape and style of your home. Ask yourself:

• What are the general characteristics of the land? Is it green and woodsy? Rocky and gray? Or, is it a vast open stretch with a golden hue? Will the prevailing colors of the landscape change with the seasons? Will the home you imagine blend with the landscape? Does the landscape suggest particular colors or materials you might include in the design of your home?
• Can other structures be clearly seen from the building lot? What is the prevailing architectural style? Will your proposed home fit the overall context of the neighborhood?
• Will the size of your proposed house be proportionate to the size of the lot? (You don't want to squeeze a mansion onto a postage stamp!)
• Is there a street or road? Should the house face toward or away from the road?
• Where should the driveway be located? Will there be enough room for cars and delivery trucks to turn around?
• Where are the most pleasing views? Where does the sun rise and set? Which views would you like to see from the living areas? From the kitchen? From the bedrooms? Where should windows and doors be placed?

• If you are in a northern climate, how important is it to face the south? Will a southern exposure help you save on heating costs?
• Is the site flat? Are there hills or streams? Are there any other geological conditions that might affect the design or placement of your home?
• How much landscaping will be required? Will preparing the land for building and planting trees and shrubbery add to your final costs?
• You want the site of your new home to be beautiful, but it must also be safe... and affordable. Before you make a final decision, you'll need to consider a mind-boggling list of technical details.
• Check Your Building Lot For Common Problems
• As you narrow your search for an ideal building site, don't scrimp on getting expert advice on home building. Your builder can put you in touch with consultants with the legal and scientific expertise to offer building advice. Your consultants will investigate the characteristics of the land and explore zoning, building codes and other factors.
  Land Conditions
  • Soil. Has the property been a victim of hazardous waste? Are there pollutants that may not be apparent to an untrained observer?
  • Land Stability. Is the property is subject to land slides or sinkages?
  • Water Drainage. Is the property located near a river? Are there hills or low spots which may make your home subject to water runoff? Err on the side of caution. Even Mies van der Rohe made a grievous mistake. He placed the Farnsworth House too close to a stream, and his masterpiece suffered serious flood damage as a result.
  • Noise. Is there a nearby airport, highway, or railroad? How disruptive is it?

  Zoning, Building Codes and More

  • Zoning. In five years, your beautiful views may be replaced by a highway or a housing development. Zoning regulations will indicate what may be legally constructed in the surrounding area.
  • Building Codes. A variety of ordinances will affect the placement of your new home on the lot. Regulations will specify how close you can build to the property line, roads, streams, and lakes.
  • Easements. Easements for electrical and telephone poles will limit the space you have for building your home.
  • Public Utilities. Unless the property is in a development of suburban tract homes, there may not be easy access to electricity, gas, telephone, cable television or public water lines. Sewers. If there are no municipal sewers, you'll need to know where you may legally place your septic system.

  Costs

  You may be tempted to skimp on the cost of your land so that you can spend more money on building your house.

  Don't. The cost of altering an unsuitable lot is likely to be more expensive than purchasing land that is meets your needs and your dreams.

  How much should you spend on a building lot? There are exceptions, but in most communities your land will represent 20% to 25% of your total building costs.
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• Advice From Master Architect
  Building a house is often the easy part. Making decisions is stressful.
  "When selecting a site for your house, there is always the question of how close to the city you should be, and that depends on what kind of slave you are. The best thing to do is go as far out as you can get. Avoid the suburbs—dormitory towns—by all means. Go way out into the country—what you regard as "too far"—and when others follow, as they will (if procreation keeps up), move on."