Sources of Building Lots

The best and easiest way to find a building lot is to contact a realtor who works in your area of interest. Many times they will know of developers who are selling lots to builders or can check the multiple listing for what’s available. Another good source is newspaper classifieds under ‘‘building lots.’’ If you’ve exhausted these sources, you’ll need to get a little more aggressive and drive around your area of interest to look for possible lots.
Sometimes, homeowners will buy a double lot when they build and keep one for an investment or for a family member to build on in the future. But in the ebb and flow of human events, plans and circumstances can change quickly. A vacant lot that’s not for sale today may suddenly be for sale tomorrow or when a serious buyer calls offering money at an opportune time.
Randall and Sharon discovered this when they couldn’t find a lot for sale in the area they lived in. What few lots were available were tied up by builders for spec or custom home jobs, and they weren’t interested in selling.
As a last resort, Sharon started driving through neighborhoods and areas they liked, looking for vacant lots. She made a list of those that looked interesting and got the names and addresses of the owners from the county recorder’s office. It wasn’t long before she had a list of eight possibilities.
Three of the lot owners lived out of state, and from their addresses on the tax records, Sharon was able to get their phone numbers. Her next step was to contact the owners on the list and see if any were interested in selling.
Five local lot owners were not interested, but one of the out-ofstate owners expressed interest. The couple had bought the lot a few years ago, but a job transfer had changed their plans, so they kept the lot as an investment. But now that their son was going to a local university, they had been thinking of selling.
Ron and Sharon offered the lot owners the appraised value for their lot and agreed to split the cost of a certified appraisal. The sellers accepted the offer and the deal closed three weeks later. This proactive approach often works because many owners don’t think of selling until someone contacts them and starts the wheels spinning.

Tips on Buying a Building Lot

The real estate truism that location is everything should guide you when you’re shopping for a building lot. You control your housing destiny more because you pick the location. And that means you’ll need to do more homework to make sure you get the best location possible.
It’s important to remember that a great house on a bad lot will not be as good an investment as a smaller house with a great location. The extra time and effort you spend finding the best location you can afford will pay bigger dividends later on.
The first step in lot shopping is to make a list of all the possible sites you’re interested in. The more lots you have to choose from, the better. Once you’ve completed the list, the next step is to start the process of elimination. The following tips will help you do that. Check with the city or county planning authority and see what’s planned for the area. If there’s a master plan, study it carefully. The secluded lot you love now may be next to an industrial park in 10 years, according to a zoning master plan. Look at the growth patterns for your area of interest. If all indications are that the area will increase in value, that’s a plus. Also, check and see if any highways, off-ramps, or access roads are planed for the area. And, of course, find out if the area is currently on the upswing or is declining in value. Get a copy of any zoning and restrictive covenants (CC&R) for the development or area. The better the area, the more restrictions on what you can build. However, that can often be a plus because restrictions tend to keep home values up.
For example, Brent and Susan found a great deal on a lot next to a newly completed golf course that the local municipality was selling as surplus property. A look at the CC & Rs revealed that homes had to be 1,200 square feet or more on the main floor along with an attached two- or three-car garage. The restrictions also limited their landscaping options and required an underground sprinkling system to keep the lawn and shrubs in good condition.
Brent and Susan were planning on putting a modular home on the property and had picked out the plan they liked. Unfortunately, it was only 1,150 square feet on the main floor and had a carport instead of a garage.
Getting in touch with the design people at the factory, the homebuyers were able to increase the square footage and enclose the carport to create a garage. This stretched the loan they could qualify for to the limit, but they felt it was worth it. Area values should increase in the years ahead and justify the additional expense. Check out the cost of utilities. A cheaper lot that costs more to run utilities into may not be as good a deal as one that has them stubbed at the property line. For instance, it’s usually more expensive to run electrical lines underground than overhead. And running water, waste, and gas lines at $10 to $20 a foot each, depending on the area, can run up site costs fast.
Make sure you have all your building site ducks in a row. Get all the necessary building permits, utilities, and hookup fees nailed down. Next get the site-work subcontractors lined up and bid prices locked in and in writing if the home dealer doesn’t handle that.

Ten Shopping Tips to Help You Make the Best Manufactured Home Choice

1. Like most other things, higher quality costs more in the beginning but not in the long run. So go for the best built home you can qualify for. A top-of-the-line model will hold its value better when the time comes to sell and move up.
2. Shop around for a model that doesn’t have the mobile home silhouette, in other words, a rectangle with a flat roof. Many manufacturers have models with steeper pitched roofs, porches, and even slide-outs that get away from a boring rectangle.
3. Look closely at the furnishings that often come with the home. Many times they’re low end, and you would be better off buying them elsewhere.
4. To get a good idea of what’s available, go to regional trade shows where you can see the latest innovations from many mobile home manufacturers at one time. Any manufactured home dealer can tell you when and where they are for your area.
5. Visit several dealers and price similar homes. Look out for the model loaded with options that you may not want or need that are included in the price. Get a breakdown of all the costs. That way you can tell what items you don’t want and may be able to eliminate or trade for something you do.
6. Check on the dealer as you would a builder. Call the Better Business Bureau and see if there are any complaints. The bank that does the financing is another good source of information. Also, talk to several past customers and see if they’ve had any problems and if they would use their dealer again.
7. Modular home builders will usually quote you the base model price with the cheapest appliances, finishes, and fixtures. The molding, windows, floor coverings, and fixtures will often need to be upgraded a notch or two. To be realistic, plan on adding $5,000 to $10,000 to the base price to get what you really want.
8. Consider adding more windows or going with bigger windows that will make your home more livable and add to its value if you resell.
9. Upgrading the tub and shower stalls are a good investment and helps the home keep its value. Also consider upgrading fixtures. Bottom-of-the-line faucets and other fixtures lose their shine fast and will need replacing in a couple of years.
10. Curb appeal not only gives you pride of ownership but is important to maintaining your home’s value. Adding trim in a second color or upgrading the exterior is worth considering. It’s important to remember that sooner or later all homes sport a ‘‘for sale’’ sign. If you keep that in mind when you buy, selling will be easier and more profitable when you outgrow the house or get a job transfer.