Choosing a location for the construction of your new home is a very important step. Your decision to build your home on a specific location will affect your future home life, the kind of changes you can make to your home someday, and its future resale value should you want to sell it. Here are a few things to ask yourself when choosing the location of your new home:

• Would your building plan go along well with the houses in your neighborhood? Take a look at the neighborhood where you want to build your home. Would the value of your home be consistent with the general value of the homes around it? Are there agreements that you need to follow in terms of what color you can paint your house with, or how high your house can be?
• Are there good schools in the district where you plan to build your house? Aside from being good for your own children if you have any, this would also raise the resale value of your house.
• Are there convenience stores, hospitals, restaurants, and other commercial establishments near the location? It is good if these establishments are within a few minutes drive from the location you are eyeing to make sure that buying things and eating out would be more convenient. Should there be an emergency, it is also good to know that there is a nearby hospital you can drive to. It may not be advisable to be choose a place near business establishments either, because this may affect the noise that you will have to put up with at home.
• How is the crime rate in the neighborhood? You would definitely want to live in a good neighborhood where crime rates are kept at a low level. How efficient is the area’s police and firefighting system? Building in a bad neighborhood lowers the resale value of your property.
• What direction should your house be facing in the area you picked? The direction of your house will make energy consumption more efficient in the long run. Before you start building, you need to take into consideration what part of the house faces north because this will contribute a lot to the climate inside your home.
• What kind of taxes are you looking at? Check whether the taxes you’ll need to pay in the area you choose will be something reasonable for you.
• What kind of terrain are you going to build on? Check whether the location you are eyeing is on a flood zone or not. The higher the terrain, the better it is for some people because of the view you get, and better drainage. Checking the kind of foliage inside and in surrounding areas of the property is also a good idea because this will add to the natural beauty of your new home’s environment.

Checking the location of the lot you want to build on is not just checking the address to make sure you’re building on a prime location. There are more things to consider, and these are the things that will make or break your new home. Take the time to sit down and check the suggestions above to make sure that the location of your home is good for you and your family.

Finding the right lot can be a difficult task.  Here are some helpful ideas to make the process easier. The first place you may look is at your local Realtor office for land listings. Before calling a Realtor go to their website and see if they offer online MLS (multiple listing services) searches. This should give you a good idea of the inventory in your areas. Realtors have the pulse on your market and can locate the property which fits your budget and overall community in which you want to build. Realtors can find what your are looking for sometimes before it goes into the MLS system. No matter if it is an established development or a secluded piece of land on the other side of town, Realtors can find hidden jewels that are right beneath your nose.

Realtors move fast and want to close the deal quickly to collect commissions. While Realtors are great assets in locating the right property, be careful, they can also hurry your closing leaving you little time to prepare for accumulating bids and performing due diligence on your project.

Most Realtors are not accustomed to the CTP (construction to perm) loans, or one time closings which can take longer to close than the traditional purchase. Until recently, purchase transactions were the only means to acquiring land which takes around a month or less to close. If you are choosing a CTP loan it is in your best interest to ask for the longest escrow period the seller is willing to accept. Typically a 45-90 day escrow period should be ample time to get your project in order.

Setting your Realtor’s expectations is key in relieving the stress involved in closing. There is little sense in putting an offer down on a piece of property with a 30 day escrow period if you have yet to begin planning for construction. Undue pressure on you and your bank can cause last minute goof ups and extreme stress. Avoid the hassle and find the right piece of property and give yourself time to do what you need to do. This being said, asking for a long escrow period from the seller should be accompanied by a solid pre-approval from your bank.

You can find land for sale under the real estate section of your local newspaper. Newspapers are great sources for good deals too. Sellers choosing newspaper ads for selling property can be of great benefit to the Owner Builder.

These sellers typically want to avoid paying a Realtor 4-6% commission on the transaction, leaving you negotiating room. These sellers are also more likely to accept longer escrow periods since they aren’t chomping at the bit to sell. Typically these sellers own the land free and clear and have less motivation to close in a month or less.

Rule one is ALWAYS make your offer contingent upon financing. You will also want to place “perk test” and feasibility clauses to your contract to make sure the lot is buildable. Make sure the current zoning will allow for residential building, the last thing you want is to go through rezoning your new land, so check with your county planning office.

When placing an offer you will be asked for earnest money to ensure you don’t back out of the deal for anything other than the inability to obtain financing. Earnest money can vary from locale to locale, $1,000 to $5,000 is customary. The larger the price tag the larger the earnest money. Sometimes you may want to put more earnest money down to convince the seller to extend the escrow period.

Lot selection is an often over-looked aspect of building a new home, and oddly enough; it is one of the most important. The lot you choose to build on is in essence the “foundation,” if you will, in many cases of your most important asset. With all this being said, it is also vital you select a lot that is right for you. It must be to your liking with respect to location, terrain, and neighborhood characteristics. Be sure to ask yourself questions with regard to each of these topics…oh, and be prepared to give yourself honest answers. Remember YOU are building YOUR dream home.

What is the position or setting of the lot? Does it offer desirable views? What is the directional orientation? Are there prevailing winds at particular times of the year that may blow dust, particles, or odors toward your new house? Is it on a busy street or intersection? What is the scene or locality like? Is the lot in a planned community / subdivision, or is it unique in the area? Is this a stable or esteemed neighborhood with price protection covenants? Is your proposed home going to be worth more than the surrounding homes? What are the tax rates of the city/county in which the lot lies? Are there close by enviable amenities, such as good schools, recreational outlets, and shopping centers? You’ve heard it before, location, location, location!

What is the topography or geography of the lot? Is there a firm, stable soil base? How well does it absorb water? Is the soil too rocky or too sandy? What is the slope or grade of the land? Is there an existing drainage problem? Is the land too flat, where water can collect in spots? Are there natural ditches, ruts, creeks, or other features that might be obtrusive or cause such problems? Is the lot located in a flood plain? What is the environment like? How is the landscape pre se? Are there too many or not enough trees for your tastes? Is there enough privacy provided by existing trees, or would you have to plant more trees or shrubs to obtain your preferred level of privacy? Know your terrain before you build.

What is the size and shape of the lot? Do you want a basement? Does the lot allow for one? Are your surroundings attractive? Are you already on a sewer line? If not, be prepared to install a septic tank and pass a percolation test. Are there already underground utilities installed, are they above ground, or even not yet established? What are the zoning laws? Are there any building covenants if the lot is in a subdivision?

Once you have evaluated the above questions to your satisfaction, it is highly recommended you then obtain a legal description of the lot. It should have been prepared by a registered surveyor showing all borders and easements. If the seller cannot produce it promptly, you should arrange for a site survey yourself. An accurate survey can do nothing but help you now and in the future.