New construction from scratch If you are building new on a random piece of property a soil study and/or percolation test is typically performed on land that does not have access to a public sewer system. The test determines the ability to put in a septic system. There is also a water study which indicates if you can put a well on your land as well for water. A failed test means that no house can be built – which is why you should make any offer to purchase land contingent on the site passing the soil and perc tests. You want to make sure also to check the zoning for setbacks on the house you are building (how far from the property line/a neighbor), and this is why a survey is important too. Attorney Doug Wilson Sr. states “I tell all buyers to get a survey no matter what they are buying.” It’s not fun to buy a property and find out you are on someone else’s land.
REAL ESTATE MATTERS By Frazier Hughes Executive Summary: “We want to build a new home.” I hear this all the time. There are a lot of factors that come into play. Here are just a few to help you with your decision.
Frazier Hughes is with Keller Williams Realty. Reach him at frazierhughescom@ gmail.com
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Need a loan for new home construction? According to lender Sonia Older of Union Home Mortgage, most mortgage companies require a builder with proven experience. Your loan can cover the cost of the land, building materials, appliances, landscaping, permits, and more. She says construction loans can include manufactured, stick built, and modular homes. Union also has a special program for Veterans. According to lender Kylie Harvell at Bank of The James, sometimes the builder will front your cost, which is great; she also says however you cannot lock into your rate until the end of the build. Harvell says it’s like planning a wedding and setting a budget. It’s easy to go over the budget things can add up as the process goes along, like finding a different cabinet maker or granite for the kitchen. Here are some costly mistakes to avoid according to Bankrate.com: 1. Don’t assume you cannot negotiate with the builder 2. Budget for items not included by builder 3. Understand builder’s warranties and timelines. Pick a builder, realtor, and lender with great reputations, and move forward to a new home on your new land.
It's easy to go ” “ over the budget.
