SEARCHING FOR LAND:

If you’ve made the decision to build a new home, one of the first major steps is to find the right lot on which to build your dream home.  And if you approach the search in the right way, it can become a real adventure for you and your family.

First things first—know your budget.  Talk with a loan officer to find out what you can afford.  Down payments and interest rates may be higher for land than for a home, so it’s important to know what your lending institution will do for you before you begin your search.

Secondly, you’ll need to decide where you want your home to be located.  Decide whether you want to be in or near a city or town or if your family would be more comfortable in a rural setting.

A part of this decision is deciding how much land you need.  If you are content with a small yard and like to have neighbors close by, a lot in a development may be sufficient for you.  If you prefer a bit more privacy and seclusion, take a drive into the country and look for “land for sale” signs.  Remember that sometimes seclusion may be a bit deceptive; a heavily wooded one-acre lot in a subdivision, for instance, may be more secluded than a three to five-acre plot in the country where there are few trees.
  
Should you decide to purchase a lot in the country, your adventure can begin!  Start by driving down rural roads looking for those “land for sale” signs.  You can also contact your local real estate agents who often have rural lots on the books.  Go online and search for land in an area in which you are interested.
  
Remember that your land is an asset as much as your home.  Look for a lot that will increase in value as time goes by.  Especially desirable are lake or riverfront lots—unless they are in a flood plain!  Be sure to check on this important fact. 
  
Another important consideration in rural settings is what utility services are provided.  Is electricity or sewer service available?  What will it take to get those services to your home?  Will you need to install a well or a septic system?  Will you be able to get telephone lines and natural gas service?  The answers to these questions are important for you to know before proceeding with a purchase.
  
A rural setting also brings up the question of access.  Make sure that your lot will have guaranteed road access.  In some cases, you may have to arrange an easement on a neighbor’s property.  Have your attorney draw up the necessary legal papers before you close any land deal.
  
You’ll also want to look closely at the homes around your lot.  If you see rundown houses, poorly-kept lawns, or other unsightly features on your neighbors’ properties, remember that such conditions will affect the future value of your home.
  
If you decide to locate in or near a metropolitan area, you may want to start your lot search by contacting local building contractors.  Many of them will have developments in progress and they will be happy to show you what they have.  You can get a list of local contractors from the South Central Wisconsin Builders Association; call them at 608-752-8075.
  
Once you’ve settled on a lot you like, there are some other things to consider.  Take a look at the lay of the land.  Remember that the topography of the land may affect construction costs.  Rolling land with ravines and woods may provide a beautiful setting, but it may be more expensive to build your home on such a lot.  The size of your home is an important consideration; while your dream home may fit on the lot, will the proportion be good? You’ll want to take your contractor out to look at the land and get his professional opinion.
  
Another important question is: What restrictive covenants or zoning restrictions exist for my land?  If you are locating in a development, chances are there will be some restrictive covenants on what you can and cannot build.  If you plan to put up a garden shed in the backyard in the future, for instance, make sure there are no restrictions that would keep you from doing that.  If you want to build a duplex, you’ll need to check on zoning ordinances to find out if that is even possible in your area.
  
If you’ve settled on a definite location, check on any easements that may exist on the property.  An easement is the right to use another person’s property for your own stated purpose.  You can find out if any easements exist on your land by looking at past deeds for the property you are considering and for any surrounding parcels.  A real estate attorney or a title researcher may be of help in this task.
  
Your bank will undoubtedly require a survey be done on the property unless it is part of a development, in which case plats for developed lots are typically on file at the county courthouse.  Locate the boundaries for your land.  Usually there are iron pins at the corners of the property or at any point where the property line makes a turn.  In wooded areas, watch for cut-throughs (pathways cut by previous surveyors when they marked a property line).  These cut areas are often visible for many years afterwards.
  
For your own financial well-being, there are two steps you should always take when purchasing a lot.  First, obtain an Owner’s Title Insurance Policy.  This simply insures your ability to get a clear title to the property.  Without such a policy, you may later discover property line disputes or liens that you will have to pay.  Purchase this policy from a local title company when you sign an earnest money contract.
  
Also, you should obtain a survey plat of the property.  This is a drawing that reveals details of the property and will help you discover if you have needed ingress/egress to your lot.  Your surveyor can also include a flood stamp on the plat which will reveal the lot’s location in any flood plains.  If that stamp does not indicate the land as being located in either Zone “X” or “C,” check further before purchasing the land.  Again, your title company can help you order this plat and provide all pertinent information needed for the surveyor.
  
Now you’re ready to make an offer.  And soon, with deed in hand, you’ll be ready to begin building that dream home for your family!