On Your Lot Building How To Get Started

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1 1. How to find land for sale On Your Lot Building How To Get Started There are several web site sources available to look at land for sale. Some of these sources keep their information current and some don t. The most reliable source to find land for sale is the MLS (Multiple Listing Service). This service does require a licensed Realtor to access the information. The information on the MLS is reliable and accurate. If you are not working with a realtor, Diyanni Custom Homes has a preferred Realtor experienced in dealing with land that can help you. Another way to find land is simply driving the back roads around the area you re interested in living. Sometimes landowners post signs on their property, For Sale By Owner, and usually these pieces of land won t show up on any web site. It s important when finding land this way that you get somebody experienced in dealing with land to represent you. Diyanni Custom Homes has over 30 years experience in purchasing and developing land. We will make sure that the due diligence process is thoroughly completed, and you purchase the land at the right price. 2. How to choose the right piece of land To some people this may seem obvious, but take some time to think through what you want. Here are a few questions to ask yourself. a. How much are you looking to spend? Identifying your budget, having a lender pre-qualify you is the first and most important step if you plan on getting a construction loan. b. What part of the state do you want to live in? c. What do you want to live nearby?.. parks, lake, river, school, highway system, workplace, etc. d. What school district do you want to be in? 1 of 7

2 e. Have you look at the taxes in the area? f. How many acres do you want, or do you want to be in a community with homes right next to you? g. How do you plan on using the land?.. are you putting a future pond in, detached garage, pool, solar panels, or wind turbine? h. Do you want a piece of land with deed restriction, or no deed restrictions? i. How do you feel about public utilities-sewer /water, or private utilities septic and well?.. are you familiar with the differences? j. Are mineral rights important to you? k. Do you want a flat piece of land or land with a lot of topography? l. How important is a walk-out basement? This list could go on, but it provides you with some of the key questions that when answered points you in the right direction. They might seem a bit overwhelming at first, but as always, it seems to come together, and the right of property is always found. It s very important to us at Diyanni Custom Homes to make sure that you find the right piece of land, and that you understand everything about it before it s purchased. 3. How to make sure you know it s a good piece of land to build on This is an important part of the land purchasing process that many times has been overlooked by people buying land. I can t tell you how many times we have talked to folks who already had purchased land, but knew nothing about it. In some cases the land that they purchased wasn t even buildable. When purchasing a piece of property, whether it s a rural lot in the country, or in a rural community, or even a small subdivision, completing the task called due diligence is key. Due diligence is the process that you do to uncover everything there is to know about the property so that if you buy it, there are no surprises. Here is a list of tasks that are completed when the due diligence is done a. Research and identify easements on property, flood zones. Look at drainage plan, and identify buried drain tile if any. 2 of 7

3 b. Soil test (on rural land) research and identify utility locations, if Septic system is required, what type of system is it going to be, and where is it located on the property c. Complete a plot plan to make sure home and additional features like detached garage, pool, all fit on property. d. Research and identify where the electric is coming from, and who is the provider. e. Water and Gas public utilities. Research and identify water and gas tap locations f. Well and Propane private utilities. Research and identify well location and depth, and propane provider. g. Research and identify deed restrictions to make sure home and additional features comply h. Research and identify building and zoning requirements for the area the land is in. i. Research and identify driveway access points, type of culvert pipes required, type of driveway material required. j. Establish the elevations of the building pad area by using a laser level. This is important to have so the foundation of the home is figured correctly up front. k. Do a complete costing report showing for each Land improvement item required in order to be able to build the home. These costs are figured for each specific property individually and are very helpful to you so that you can see exactly what is required. It s also important to the bank, the lender wants to make sure the money the lend will cover the cost of the land improvements. Our trained and experience staff at Diyanni Custom Homes will complete a thorough Due diligence process for our clients. We want you to know everything about the property you are buying, and avoiding any future surprises. The due diligence period can take between days depending on the type of land, and the complexities involved. This is something that the seller generally will allow if you ask for the time period. It s important to know that if something comes up during the due diligence time period that should have been disclosed upfront by the seller, you have the right to walk away from purchasing of the property. 3 of 7

4 4.How to determine the Land Improvement cost The land improvements are all the features that are generally around the outside of the home required to be able to have the home built, and cost money Here is a list of Land Improvements a. Septic and Well, or sewer and water a. Underground or over head electric, temp electric b. Gas line or Propane tank c. Culvert pipe for driveway d. Construction drive for access to site under construction e. Finish driveway, gravel, concrete or asphalt f. Conductor lines for downspouts g. Seeding and landscaping h. Service walks, and city walks if applicable i. Dirt hauling if applicable j. Erosion control if applicable k. Tree clearing if applicable l. Rough staking if applicable These costs are figured to be specific for the land or lot you are buying. They are not guesses, or ballpark estimates. There is no mark-up on these cost at all, they are direct prices from the supplier / installer. Each cost is itemized out so you can see items specifically. Diyanni Custom Homes has spent years working with suppliers and installers in each county to help establish consistent cost effective pricing on behalf of our clients. Diyanni Custom Homes manages the land improvement process for you. We schedule the suppliers and installers at the appropriate time, and make sure the work is done correctly. 5.Understanding Deed Restrictions Deed restrictions are the restrictions placed on a piece of property that are recorded. These restrictions can affect the type of home you can build, the materials on the exterior of the home, and what you can do around your home. Restrictions are meant to help control the area, and protect your investment. If you are building in an area 4 of 7

5 that has no restrictions it s important that you are aware of that. It s also important to know if you are building in an area that has a lot of restrictions. Reading and understanding deed restrictions is something that we can help you with. Making sure your home and the features that you plan on doing around your home comply with the restrictions is an important step in the planning process. You do not want to find out later that what you had planned on building or installing around your home does not meet the deed restrictions requirements. What to look for in deed restrictions a. Size and type of homes allowed to be built? b. Roof pitches (6/12, 8/12, 10/12, etc.) that are allowed for the home? c. Type of exterior materials allowed on the home? d. Type of windows allowed? e. Size of garage allowed? f. Type of landscaping allowed? g. Type of driveway allowed? h. Are pools, fences, detached garages, solar panel, wind turbines, etc. allowed? i. Is there a design committee that is required to approve the home plan for the land or lots in the area you want to build? If so what is the process of getting a set of plans approved?, and how long does it take? Sometimes deed restrictions can be very basic, and cover just a few items, or they can be extremely detailed. We ve seen old deed restrictions that have requirements for materials that are outdated, and really shouldn t be installed on a home. In these cases it s good to have an experienced builder that can step in on your behalf and get these issues resolved before you purchase the land. 6. Developing a home plan that is site specific It s important when designing a new home to consider the land that it s being built on. You want to make sure that not only is the interior design accommodating to your family needs and lifestyle, but captures everything that piece of land or lot has to offer. Here are a few design items to keep in mind when building on a large piece of land or lot a. Where are the main views of the property? Make sure to have the rooms in the rear or font in a position to capture those views. 5 of 7

6 b. Putting the home on an angle so that it s not directly facing the road will ad to the curb appeal c. Look to put the house on the highest and flattest area on the property. This will help to avoid extra foundation and gravel cost d. If the lot slops, always look to put the Garage on the high side, this will save a lot of money in extra gravel. Sometimes it is more cost effect to have a 2-car garage on a home, with a detached garage due the topography of the property. e. If the lot has the possibility of a walk-out, consider utilizing this and have the home plan designed with windows and doors out the basement area. f. Consider the type of design for the front porch, if there is a lot of slope on the property. The way the front porch is designed, type of materials, and size could save a lot of money. g. Clearing a lot to build a home cost money, so consider putting the home where the least amount of trees are if possible. Also, keep the driveway in mind as to where it comes in off the street and enters the home to avoid cutting as many trees down as possible. In general the cleared area around a home should be at least 30 feet. Buying a piece of property affords you the ability to have a home designed to work with that specific piece of land. You shouldn t expect an out of the box design from a builder to work perfectly with the property. At Diyanni Custom Homes we encourage taking time with our experienced designers to modify a selected floor plan to work with the your property, family and lifestyle. We expect to do this as a part of the process, and do not charge for this service. We feel it s important that you get what you want, and it works with the land you are building it on. 7. Putting everything together, Land, Land Improvements, Home If you plan on using a lender to get a construction loan to buy your property and build, it s important that everything is packaged correctly. The lender will need to see the contractual documentation for the cost of the cost of the home, land, and land improvements. Having this spelled out clearly will avoid needless delays from the bank as your package goes through the underwriting and appraisal process. 6 of 7

7 At Diyanni Custom Homes here is the way we have found to be the most understandable to you as the client and the lender. a. Home price - The home is priced specifically to the design, and type of amenities selected. The design and specifications are spelled out clearly for you and the lender. This price is set and does not change. b. Land Improvements These are the items that are required in be completed in order to build the home. They are priced out individually for you and the lender so they can clearly see that there is enough money in the loan to cover these cost c. Land Price This is separately itemized cost so the bank can see what needs to be paid off when the loan closes.. assuming you are rolling your land and home together into one simply loan. Note: some clients get a separate loan on the land because they don t plan on building for some time. If you plan on building right away, you can avoid additional closing cost by having the land and home combined together into one construction loan. At the closing the bank will pay off the land for you, so that everything is wrapped up together. When a contractual agreement is signed with Diyanni Custom Homes, we will have these elements spelled out clearly and a set of plans ready for the lender. This will help make the process of obtaining a loan go smoothly. As soon as the closing for the construction loan closes with the lender at the title company. We are set to build your new Diyanni Custom Home! 7 of 7