Congratulations! You have decided to build the home of your dreams, or perhaps construct a customized apartment complex or place of business. You have created a budget, acquired blueprints, and contacted a well-researched and accredited builder. Now, you are on the hunt for Houston land for sale.

Houston Land for Sale

A Checklist for Reviewing Houston Land for Sale

There is a right and wrong way to consider a plot of land. The wrong way is to find the prettiest stretch of property and then buy it. Despite its beauty, you may not be able to legally build anything on that property. The right way is to review the following checklist and cover each point thoroughly.

• Qualified real estate agent . Make certain your agent is not only experienced with Houston land for sale, but that they love to do it. You need both their priceless expertise and their full participation in working out the details.
• Financing . Ask your agent to recommend two or three lenders willing to loan money for undeveloped land. Lenders are less willing to finance undeveloped land than property with buildings, because it is more difficult to dispose of undeveloped land when the buyer cannot fulfill their financial obligation. Consequently, lenders who loan money for buying land usually require 20 percent to 50 percent down and charge higher interest rates.
• Zoning . You or your agent must check with the city government to find out what properties are zoned for your desired purpose. This is especially critical if you want to run a business. Some neighborhoods do not allow residents to operate a business from home.
• Restrictive Covenants . Get a list of these when you research zoning laws. Restrictive covenants are rules governing such things as roofing materials, building heights and pet limitations.
• Easements . An easement is the right of someone else to use your property for a specific purpose. For example, if you have a stream running through your property, the government may have the right to come onto your land to test the water; or, your neighbors may use one of your roads to access their own properties (this easement is known as “right of way”). These rights are legally transferred to you when you buy the property and you must honor them.
• Services . Obtain quotes for connecting your land to city services such as water, sewage and electricity. The farther you get from the city center, the more expensive it will be to connect to services. If connections are not available, you will need to obtain quotes for drilling a well or installing a septic tank.
• Surveys . A professional survey determines the exact size and boundaries of your property, including the specific location of easements. Your lending bank may require this as part of the deal, and you can request it from the seller. A survey will also be useful to your builder in helping him determine the placement of buildings and fencing.
• Contingencies . A contingency is a loophole in your offer to buy real estate. This means your offer can be withdrawn if certain conditions are not met. You should, for example, make your offer contingent upon being able to obtain building permits. Your real estate agent can help you determine if other contingencies should be added.

As you can see, there is a lot to consider when reviewing Houston land for sale. If you keep yourself surrounded by knowledgeable professionals and follow through on preliminary research, you will be able to avoid the pitfalls of the unprepared.

By Alisa Elizabeth King Terry

A REALTOR® is a real estate professional who is a member of the National Association of REALTORS®