Looking for Land?
Building Your Ideal Home Starts With the Right Land
Whether you’re a first-time homebuyer hoping to take the next steps for you and your family or an existing homeowner looking for a property that better fits your lifestyle and needs, building your home is a great way to ensure you get what you want.
If you’re ready to build your ideal home but don’t have land yet, don’t worry. Plenty of options are available to help you buy land and secure your dream property. Whether you’re purchasing vacant land or undeveloped land, it’s essential to understand the process, from financing to property evaluation.
Buying land for your new home is an exciting endeavor. As with any big decision, it is important to take a moment to determine your wants and needs. Some preparation is necessary to find the right piece of property.
It’s a good idea to make a checklist before you make an offer on a lot, such as the following items:
- If you’re considering moving to a new area, check out the livability of the region.
- Select a home builder who will assist in the evaluation of your land.
- Establish your financing options and determine your budget
- Contact your local building department to make sure the land is appropriately zoned and buildable.
- When purchasing land but before building, keep in mind the tax implications.
- If you're considering turning the property into a business opportunity or rental investment, research local tax regulations and ensure your plan aligns with your goals.
When it comes to buying land — and real estate in general — nothing is more important than location. Finding the right property with the right surroundings, amenities, schools, neighborhood(s), etc. is essential. You want to find a spot that you’ll love, that ticks all your boxes, and which you and your family can grow into.
If you have land in mind or you're still searching, there are a few key factors to consider. For example:
- How much does the property cost?
- Will you finance or pay cash?
- How will it affect your overall budget?
- Is the land level?
- Are the utilities already in place?
These are just some factors that can play a major role when choosing a property, preparing your land, and building your new home.
You’ll also want to make sure your home builder operates in your desired location. For example, HiLine Homes builds custom homes across the Pacific Northwest in Washington, Oregon, California, and Idaho.
When you have decided to build your home, rely on experts for advice. Your home builder can help direct you in selecting land suitable for the home you want to build. A knowledgeable Home Consultant acts as your guide and gives you access to the right resources to find the perfect property for your new home. During your home building consultation, you will develop your vision by discussing items like community preferences, desired budget, and your dream home.
Looking online is a great place to find out what’s out there and filter your searches based on acreage, neighborhoods, and other important factors.
It can be tempting to rush through the process of choosing land because selecting a floor plan and starting construction is so exciting. But it’s important to make sure you build your dream home on the right land or property.
In addition to consulting your own personal and unique preferences, consider whether your land meets the following criteria:
- Is it buildable?
- Is it easily accessible?
- Are utilities already in place, or would they need to be added?
- Does it meet all the necessary zoning requirements?
When comparing land options and financing choices, it is important to consider your budget and financial limits.
You’ll need to review interest rates, down payments, and refinance options. Be sure to ask your lender about insurance requirements for land purchases.
Historically, land loans or land mortgages could be considered as the next step to secure the property. But why pay the closing cost for a land loan when you want to build your dream home? Set yourself up for success by researching a construction loan with your home building consultant.
Many first-time buyers believe they need significant savings to buy land. But even if you don’t own land yet, getting pre-approved for a loan based on your credit score will set you up for success.
When you know you want to build a home, becoming pre-approved for a construction loan is one of the first steps. The pre-approval will create your overall budget. The construction loan finances the cost of the property, improvements, and home. Then when your dream home is complete, the construction loan typically converts into a traditional mortgage. Use our mortgage calculator to get an idea of what yours would be like once you purchase a house.
With HiLine Homes’s unique building program, some of our approved lenders consider the equity when the home is complete as your down payment. Due to this, many of our homeowners can move into their dream home with no down payment.
When you are ready to make an offer on land, it is exciting, but this is where relying on experts is helpful. By now, you are working with a real estate agent, and having one with an understanding of buildable land and new construction will use your time wisely.
After you make the offer, you will have time to conduct a feasibility study to determine with confidence this is buildable land. The initial process is similar to buying an existing home. You make a written offer, and then the seller can accept, reject, or counter your offer.
Steps to Complete a Land Purchase and Build Your Home
In order to close on a piece of land, you and the seller both need to sign a land purchase agreement specifying all the details of the purchase.
You’ll work closely with your Lender and Home Consultant at this time to complete the home order and provide the documentation needed to close your construction loan and secure your land.
Schedule Your Home Building Consultation
We’ll connect you with a Home Consultant in your region to schedule your consultation.