PRICE
The price of the lot is the principal financial factor. It is
determined by the lot's location, size and property taxes. Technical
factors include the availability of municipal sewer and water
lines, the level of the subsurface water and the water
table; the grade slopes; the quality of the bearing soil;
and whether or not the lot is located in a flood-prone area.
Other factors are the quality of the neighborhood schools and
colleges, the nearest shopping center and supermarkets, social
clubs, houses of worship, mass transit systems and highways, as
well as theaters, beaches, parks, public swimming pools, and golf
courses. Legal considerations in lot selection include ownership,
type of deed, deed restrictions, and easements and encroachments.
You can find lots for sale through
- Real-estate
agents
- "For
sale" signs posted in front of a property or along roads
and
highways
- Local
newspapers
- Friends,
relatives and coworkers
- Developers
and builders
When
considering a lot, you should estimate how much money to allocate
for buying the lot and how much for the construction of your home.
The ratio between the price of a lot and the total cost of the
house depends on the market conditions and the location. Land
is cheaper in rural than in urban areas, hence the price of the
lot as a percentage of the total cost of the house is likely to
be less in rural than in urban areas.
In comparing lot prices, remember the cash price is not the only
consideration. If the land is rocky, wooded or steeply graded,
it will be more expensive to build a house. Another financial
consideration is whether the land has municipal sewage disposal
and water on-site. If these need to be added, the building costs
will rise. And, don't forget to check the title deed and transfer
taxes for the plot.
