Lot Selection Part #2

• What are the average real estate values for the sub-division (defined by county assessor’s office) and how does that fit in with your budget?
• What are projected local real estate taxes going to be for the value of the home you plan on building?
• Are there tax assessments pending for improvements?
• Is there an association for maintenance of common areas?
• Are real estate prices stable in the neighborhood? Are there a number of For Sale signs?
• Are there encroachments from neighbors that may be a serious problem?
• What will it cost to make the lot ready for building? Extraordinary costs such as extending services and/or well and septic systems, soil corrections, importing/exporting soils are just a few of the items that can add significantly to the cost of a lot.
• Things like building flood plains, setbacks, zoning limitations, soil conditions, wetlands, endangered species, Indian mounds and road access issues can cause a seemingly beautiful lot to be sub-standard or completely unbuildable.

It is best to work with a builder before you purchase a lot. It is always best to purchase a lot with a due diligence contingency that gives the builder and yourself the time to sort out these and other issues. An experienced builder will know what to look for and can help qualify the lot.

What did I miss?