Have you ever dreamed of finding that perfect piece of property in exactly the perfect vacation spot? After finding it, you would build the perfect dream home on it … and live happily ever after. Right?

Although “the Dream” can come true, there are many, many considerations to be addressed before diving into the adventure.

Can You Build Your Dream Home Here?

Before your piece of land can become your vacation home, you'll need to do a little research. Is the zoning okay? Is the size of the land acceptable for the size of the house? Can you be sure you will be able to obtain sewage, water, and electricity? In buying raw land, it is essential to do the background research. A realtor who knows the process will make these questions much easier to investigate and answer.

Raw or Improved Land

Raw land refers to land which is available for building but has no improvements such as water, sewer, electricity, and roads. In other words, you will need to arrange to have these basic services provided before building and inhabiting a home on the land. First, you will need to gain access to a well or access to town water. You will also need to tap into an electricity source.. And, you will have to access public sewage systems or put in your own septic system. Improved land implies the water, electricity hook-up, and sewage system are already in place. This happens if the land is part of a development or the previous owners began the improvements. It can often be prohibitively expensive to provide basic utilities in the manner you might desire, so careful research before purchasing the property


Master Plans and Zoning

Another consideration for your land is what will be happening around your land in the next 20 years or so. Many communities have a zoning system and a master plan that is viewable by the public. Careful review of existing zoning and contemplated land development will help you avoid building your home, and then discovering it is right next to the planned shopping mall, local quarry, or the newest highway. Looking at the master plan, you also want to consider the zoning both for your land and the neighboring land. Is it all agriculture? Is some of it commercial? What is the minimum lot size in that area? For example, if you buy 50 acres, and discover that the minimum lot size is a quarter-acre, you could find yourself in the midst of dense housing in the future. Finally, remember to consider the environment. The ability to build on a piece of land must conform to the local environmental considerations.


Finances

The costs of building a new home vary depending on what you build. For example, a simple frame construction home may be very affordable, while a state-of the art home finished with interior and exterior stones and fine features may be very expensive. Banks will generally lend less on raw land than a finished home, so you should be prepared to save for a bigger downpayment when the time comes to purchase the raw land. Another financial consideration for land is that it does not get the same income tax benefits as a second home. Therefore, it is more often times more financially prudent to build on it fairly soon, rather than just hold on to it.


In Brief

In summary, there are many considerations and a lot of work that will be needed to build a brand new home on raw land. Careful planning and expert advice, however, can enable you to overcome the obstacles and build the home of your dreams!