There has been a tremendous interest in vacant land lately here in Lake County from people who want to buy everything from a lot in a subdivision to large parcels that are zoned agricultural or rural residential. The reasons vary from buying a location to build a home to developing a vineyard. Many investors realize that buying vacant land can be a great investment depending on the location and situation. Regardless of the size of the property there are several issues the buyer must consider before making the purchase.
If you are buying a vacant lot to build a home in the near future you have to realize that currently it is much more cost effective to purchase an existing home and remodeling it than building one from scratch. Many investors are buying land now while the prices are low. During the last building boom in Lake County, vacant lots increased dramatically over a short period of time because builders saw that there was a market for new homes. There were several builders that had a big advantage because they had already purchased property before the boom began.
To ensure that the property is suitable for building a home, the buyer must consider several things including the size of the property.
Does it have utilities available such as water, power and telephone and will PG&E charge a fee for hooking up? Will the house you want to build fit with all the setback requirements? If it requires septic, make sure there is a soils test to know how large the leech field needs to be to fit your needs because septic systems have specific setbacks and space requirements that take up space on the property. If the property has a water source find out how much the connection fees are, if it needs a well find out how much it costs to drill a well and what results the neighborhood has with them. It is important to check to see if there is room for a well and a septic system on the same parcel. I could write a series of articles on wells and septic systems, but it is best to check with Lake County Environmental Health to get the specifics.
It is always important to research the costs of building a house such as permit fees for the county, school district, fire district and water district. If the property is in an association, check out the Covenants, Conditions and Restrictions (CC&R”s) and how much the association charges for fees. Find out how much it costs to install a septic system or hook up to sewer and get several bids from contractors who could build the house. Some contractors will include all aspects of the build in their bids, while others will want to do only part of the building process.
If you are planning to build a home in the future, now is the time to find that perfect lot or parcel but make sure you do your homework. Contact your local Realtor who will help you through the process.
Ray Perry is the 2013 Realtor of the Year for Lake County and works for CPS Country Air Properties located in the Riviera Shopping Center. He can be reached at 277-8000.
