Questions to Consider Before Buying a Lot for your Custom Home

Listed are a few general things to consider when buying a lot.  In the St. Louis area one can find a good lot at a decent price.  One might look in the St. Charles or O’Fallon area of the metro.  Be sure to pass these questions along to your real estate agent, the seller and experts in each field. 

All things considered, a new custom home built well can last for generations.  A custom home gives you a chance to pick out what will be constructed and where you will break ground.  Every area has a reason to stay for decades and can be a good investment.  Most plan on staying in their new house a long time so time is not an issue, but doing your due diligence is always good.

·        Location, Location, Location.  Does the area have a good location you can plan your future?  Are the school districts good or what you expect? Are there any nuisance noises nearby? (Highways etc.)  Are you within an acceptable distance from hospital or fire station?  Some may not apply to you now, but think a few years down the road.  This can also affect the value of the custom home.  These are all good questions and can depend on your location.

·        Has a licensed contractor deemed your location “buildable”?  Having access to power, water and your cities central sewer system are most likely important to a land buyer.  Are these still valid in around 3 years; was the PERC test (Percolation test) performed on the soil? How long will the PERC test be valid?

·        What rights will you have on this land?  Make sure you will have clear title of the land.  Make sure there are no Liens, easements, right of way, or any other restrictions. Also it’s important to know if it is part of a HOA (Home Owner association) or any local laws.  Any local laws or building restrictions, including endangered species laws (or violations of any kind) may deem your plan a bust.   Know all the laws before you build or find someone who does.

·        What mineral rights, safe drinkable water or other will the owner of the new plot of land have?

·        What Access will you or others have to your new lot?  Will builders be able to access your site?

·        Will the Zoning allow your future House or Structure(s)? 

·        Is the size of the lot big enough for your home or buildings?

·        Is your lot located near or in a Flood Zone?  Flooding in any area near your property can be hazardous; make sure if you decided on an area to have an escape route.  Flood insurance is also important to consider.

·        Will any clean-up be needed from the previous owner?  This could include anything from toxic chemicals to any toxins that may be required to clean-up before the build.  If the land is purchased, these costs can become the buyer’s responsibility.  Find out what the costs are before purchasing any land.

These may seem like some daunting questions.  You, your realtor, or lender may have more questions which should be addressed by a professional in that field.  A well-built custom home is worth asking these questions and can save you down the road from questions you or your future renovator may have.  A good expert, in each area, will be able to answer these inquiries or know another expert who will.  It’s not a bad idea to jot down a few answers to these questions and who answered them.

6 Things to Know before your Home Renovation

Preparation can help you and your contractor save time during your future remodel.  These are just a few tips to consider before you take on your construction project.

• Make sure your contractor is licensed.  Each state has its own set of rules set by the state they reside in.  Without a licensed contractor, your city or town local inspector may not issue a permit forcing work to stop on your property. 
• Look for the Company or Contractor on the BBB (Better Business Bureau).  You can see how many complaints they have (if any) and how they were handled by the business, customer and BBB – if you can do this here:  http://www.bbb.org/stlouis
•  Have an idea or plans for your contractor from you or your architect.  Not all plans will be approved by the city or location you live in for necessary permits, but hiring an architect or general contractor may increase these odds.  Stick to these plans, be prepared for a change work order from your contractor if you or the contractor decide something different has to be done.  For example, you change a door way or fixture.  These may seem like small things but to your contractor they are not.  Also make arrangements (living etc.) for when the construction work is to be done.
• Make a budget.  Try to stick within that budget allowing for some overages.
• Plan for overages due to unforeseen circumstances or when a homeowner changes their mind.  This is usually due to an upgrade to plans or to add something your contractor had no idea about.
• If you change your mind, be prepared for a change order from the contractor.  Time is Money.  Your contractor is no different.  It is standard in the industry to issue these change orders if any modifications are made.