Buying Land is the Second Step

You only need to select the land at this point.

If you find a particular building site and don’t want to risk losing it you can make an offer with the understanding that your binder or deposit will be refunded if certain conditions or criteria are not in your favor or if you can’t obtain construction financing.

This is called a contingency offer. Don’t put more than 10 percent down as a binder or deposit, and if you are using a real estate broker be sure that the money is held in escrow.

If you don’t know any Realtors, you can find a Realtor or a Realtor website through Realtor.com

If you already own land, jump ahead to the next topic. If not, read on. If you don’t already own land, you must decide where and what to buy.

The cost of the land should be your guide for it will be the first item subtracted from your budget. Whatever is left in your budget after subtracting the cost of land is all you have left to build the house.

Choosing the Right Land or Building Site

First choose the area where you want to live, for real estate location is the main determining factor in land cost.

Next, look for a lot or a site with the acreage you want to accommodate your personal tastes.

If you have lived in a city or town for a while, you probably know where you want to build. If you haven’t been looking around, or if you are new to an area, again I suggest working with a local Realtor.

These brokers know what each neighborhood offers and what lots cost in different locations.

If acreage is what you are after, here too, a Realtor is most helpful. He or she can help you locate the property you want and can help with all the details necessary to assure you that it is a suitable building site.

The Realtor should be able to show you a survey (map) of the lot and point out the boundaries to you during a walk around the lot.