Land Buying 101
Purchasing raw land or a build-ready lot is fundamentally different from buying an existing home. There's no inspection report, no appraisal comp to lean on, and the financing options are different. Here's what every buyer should know.
Financing Your Land Purchase
Traditional mortgages don't apply to vacant land. You'll likely need a land loan, which typically requires a larger down payment (20-50%) and carries a higher interest rate. Some sellers offer owner financing, which can be a great option.
Due Diligence Checklist
Before you close on a lot, make sure you've investigated:
- Title search and boundary survey
- Soil percolation test (for septic)
- Environmental assessments
- Flood zone status
- Access rights and easements
- Zoning and permitted uses
Taking the time to do proper due diligence protects your investment and prevents costly surprises down the road.
