|
|
|
|
Buying Land in Florida
The land buying process sometimes can scare off some people from pursing their goal of building their dream home. However with some research and preparation the process can be much easier than most people expect.
Here are a few things to remember when looking for property, and to help you avoid the potential pitfalls.
Construction Costs
If you have an idea of the type of home you would like to build, interview a few different general contractors to get a rough estimation of the cost you can expect to pay per square foot. Nationwide this is normally estimated at about $100 per square foot, but can vary depending on your local construction costs, or the quality of construction.
In calculating your budget, don't forget to include costs from driveway construction, landscaping, and septic and well installation if applicable.
Once you have a total for you construction costs, you can subtract that from your total budget to get to the maximum amount you should spend on land. All parcels are different in some way. Allow for additional unexpected costs, such as bringing in additional dirt, or having the land cleared of trees.
Restrictive Covenants
If you're looking to build in a deed restricted development, you'll need to examine the restrictive covenants. This will tell you if the type of home you intend on building is acceptable. These covenants can dictate the size, color, design, and other key elements of your home. If you find any of these covenants disagreeable, you should probably continuing looking for another homesite.
Public Utilities
One frequently overlooked aspect of a land purchase is the availability of utilities. The price of the land is greatly affected by the availability of city water and sewer. However, some property doesn't have access to electricity, and the normally a building permit will not be issued on these properties.
Easements
Definition: A right to use another person's real estate for a specific purpose. The most common type of easement is the right to travel over another person's land, knows as a right of way. In addition, property owners commonly grant easements for the placement of utility poles, utility trenches, water lines or sewer lines. The owner of property that is subject to easement is said to be "burdened" with the easement because he or she is not allowed to interfere with its use.
Before purchasing a parcel of land, be sure to find out if there are easements on the property, and if there is any negative impact because of that easement.
Locate Property Boundaries
Look for iron pins at the corners of property, or at any point where the property line makes a turn. You might find iron pins flush with the center of the road, too. In wooded areas, watch for pathways cut by surveyors when they marked a property line. They are often visible for many years. Trees or bushes along property lines are might be marked with brightly colored paint or plastic.
Survey
Surveys are always a good idea and some banks require them. Updates to existing surveys are often acceptable and are less expensive than ordering a new survey.
Road Maintenance Agreements
If the property is accessed from a private road your bank might require a recorded agreement that shows all owners have promised to help with road upkeep.
Environmental Issues
Ask for a signed statement that discloses facts about buried items, such as oil or gas storage tanks. Their removal and cleanup can be expensive.
Contingencies
Make sure you have contingencies in your purchasing agreement if you believe there certain issues that may restrict your ability to use the property for your intended purpose. For example, if there is no city water or sewer available, make a condition of you contract that you will be able to obtain a permit to install a septic system and well.
| |
