FarmTalk: With Paul Ward - Your Dream Home - What To Consider When Planning to Build On Vacant Land

In today’s Farm Talk show, Paul Ward shares valuable facts and on what to consider when planning to build your dream home on vacant land.

He tells a story of a woman, a land owner, who came to him with a problem – she had bought a parcel out in the country four years earlier but had never built on it.

They found, after reviewing the comparable sales in the neighborhood, that she had paid too much for the land and would probably take a loss on the property.

Paul helps people analyze the pros and cons and crunch the numbers on buying property.

What To Consider When Buying Vacant Land:

• Land costs money and building costs money. Add that together and the cost may exceed other houses in the neighborhood.
• What is the cost per sq foot? It varies on the materials used. (It could range from $300 to $600.)
• Multiply that number by the number of square feet you are building.
• Permits cost money – you need a permit for everything you do.
• Utilities – how far is your parcel from a city or county road? If you are way out in the backwoods, water, electricity, natural gas, or propane needs to be routed to the house.
• There may be sewage issues. Properties out in county don’t have sewage – you will need a septic tank.
• Earthquake requirements – you might need caissons.
• Fire access: You will need a 20 foot wide driveway. Fire engines also need a large turn around.
• You need a water source – a 5,000 gal tank or a swimming pool.

Building a house on vacant land could cost you hundreds of thousands of dollars before you even put up a wall!

It may be good to do a cost comparison between building and buying a fixer upper out in the country. Depending on how long you plan to be in your house, you may be upside down when the house is first completed.

Listen to Paul’s show for more important details that will save you work and save you money when planning to build your dream home!

You can contact us at (805) 479-5004 or e-mail: Paul@homeandranchsellingteam.com