ARE YOU LOOKING FOR LAND?
Busy Hammers has land listings throughout the
state of New Hampshire AND Vermont. If you are looking for land to build your home on let us
know what towns you want to live in and we will supply you with the “listed”
properties available.
Our associate Dawn M. Drew, licensed Realtor, will be able to help you with your land selection and will guide you through the purchase paperwork requirements.
Factors to Consider Before Buying Your Building Lot
Following are some of the factors a future home buyer should consider before
purchasing a building lot on which to build their new home. Busy Hammers has
prepared the following information to use in evaluating your prospective
building site. This outline should not be used as a substitute for obtaining
legal, environmental, economic and other professional advice before making
your decision to buy land.
Lot and lot improvement costs are a major portion of the costs involved in building a new home.
Many financial institutions consider, and limit, the ratio of lot and lot improvements to the total construction cost of your home.
Choosing and purchasing the land, on which you are going to build your new home, is as important as choosing the home.
BUDGET
Time and energy can be saved, as well as avoiding disappointments, if you
determine your total construction budget before beginning your land search.
The first step in constructing a new home is to determine what you are willing to spend for each component of the total construction package.
The major cost components are: 1. the lot, 2. the lot development, and 3. the home.
By breaking your costs in to three major components, you know how much is needed for the purchase of land and land improvements, allowing you to focus your search for lots that meet your budget requirements.
LOCATION
You can speed your search by determining:
The distance to a location that you will need to continually travel.
Particular town(s) in which you desire to build.
Towns in which you do not wish to build.
The size and characteristics of the lot you desire.
Size and characteristics of neighborhood you wish to live.
In addition, consider
if you want your lot:
Wooded, open, on a dirt road, or paved road, in a village, or would your
prefer a more rural setting.
SEPTIC
If you consider purchasing a lot that does not have access to a municipal
sewer system, you should be certain the lot can support an on-site system
and the cost associated with its permitting and construction.
· Most lots for sale will have had soil testing done to determine
if a septic system can be built. In addition to the type of system required,
you should determine if a septic plan design has been prepared by a New
Hampshire licensed engineer. If not, the cost associated with having an
engineer design a system will become part of the lot improvement cost.
· Even though there are other considerations that will effect the
construction cost of a septic system, the major difference in cost is
directly related to the type of septic system.
· The system requiring the least cost is a conventional system.
· If the soils do not support a conventional septic system, a mound
system is usually required. A mound system will cost as much as four times
what a conventional septic system will cost.
· In most instances, the septic system is part of the permitting.
If required, be certain that a permit from the city and state exists for the
septic system.
SOILS
In addition to septic consideration, the nature of the soils can impact the
cost of construction.
· For instance, the existence of ledge that requires blasting can
add thousands of dollars to the construction cost.
· We suggest discussing this issue with your contractor before
purchasing a particular lot.
ELECTRIC POWER
The cost of extending electric power to the location of your new home can be
a substantial cost.
· You should discuss this with the provider of electrical services
in the area and with your contractor, to determine what the installation and
activation cost for electric power to your home will cost.
WATER
If the lot you are considering does not have access to a public water
system, you will need a private system (usually a deep-well). Your
contractor and well drilling company will determine:
· What is the average depth of wells in the area?
· What is the expected cost of a total water system, including pump
and installation?
· Regardless of the depth wells are averaging in a given area, it
is not a guarantee that a well on the lot you are considering will be the
same depth and it will cost “By the Linear foot”.
DRIVEWAY
The distance that a driveway needs to be constructed will effect the cost of
lot enhancement. Also, check with the local town/city regarding any
changes you may need to consider.
· The longer the driveway the more the construction cost, as well
as the cost of plowing, sanding and upkeep.
PERMITTING
· The realtor or the landowner should be able to provide you with
what permitting is required before you can build on your selected parcel of
land.
· This does not replace the need for you, or your representative to
investigate the need for any local and state permitting. In addition, you
should determine if there are any deeded restrictions, or environmental
concerns relative to the parcel of land that you are considering. A 20-acre
lot might have 10 acres of wet lands. This would mean that there are state
restrictions relative to what you can and can not do in and near the wet
land area.
· Always consult with legal counsel relative to permitting and
other restrictions, before purchasing any land.
· Most lots on the market are permitted up to a point whereby only
building and curb cut permits are required before construction can begin.
· Permitting requirements are legal necessaries and are thus, very
important, can take a longtime and cost a lot money.
IMPACT FEES
Some cities and towns impose an impact fee on any new construction within
the city, or town limits.
· There may be one fee, or a fee for the impact on each municipal
service.
· In some instances these fees total several thousand dollars,
which in turn, increases the cost of a new home by the same amount.
· You should check with the town, or city clerk to determine if
there are impact fees associated with the construction of a new home in the
area you are considering building.
OTHER
Other factors will have an effect on the lot improvement costs, including:
· topography.
· size of the area to be cleared of trees and stumps.
· Water drainage
Involve your contractor early in your home construction process. The
contractor should be willing to visit any site with you on which you are
mulling over to build your new home on, and to provide you with advice and
cost estimates.
Remember Busy
Hammers- “Listens To You”.
