What To Know Before Buying Land In Washington

“Buy land, they're not making it anymore.” - Mark Twain

There are several things to consider before buying land in Washington.

• Does it have views?
• Should you buy in town or out in the sticks?
• Do you want to be in a top-quality neighborhood? 
• For safety, check your plot, both in the day and at night. (Research crime rates)
• Is it in a flood zone? If so, you’ll deal with increased construction costs.

Raw Plots vs. Unimproved Land vs. Build-Ready

• Raw or unimproved land = Building won’t happen immediately, and will need utility hookups = higher costs.
• Build-ready lots are ready for immediate construction with permits.

Utility Hookups on Your Plot

• Water
• Power,
• Sewage, 
• Natural Gas, and more.

Lack of utilities is typical with raw lots, which can increase your installation costs.

Contact your city, county officials, and utility companies to learn what utilities are there. They’ll also tell you how much it will cost to move or add them.

On a tighter budget? Highly consider a build-ready lot where utilities are already in place.

Surveying and Land Zoning

• Does zoning allow for building a home on your plot? 
• Know the boundary lines before you purchase. This will be an issue if you plan to install a fence or driveway. (Is it within your boundary lines?)
• If a land survey hasn’t happened for your plot, you can negotiate this with the seller.

Financing and Loans (If you are not paying cash for your plot)

• Want to buy a plot, then build later? Don't always expect a loan. Why? Land purchases cannot be leveraged with a bank. You'll probably have to pay cash if there is no structure on the plot. If you already own a piece of land, the bank/lender might offer financing of 40% or 50% of the plot's worth.
• If you intend to start construction right away, the house will act as collateral for the loan. NOTE: You'll have a greater chance of being approved for a construction loan that will become a regular mortgage after completion.
• Raw land loans tend to have higher interest rates.
• For build-ready lots, lot loans are available, like unimproved land loans and improved land loans. Unimproved land loans sometimes have amenities and utilities.
• Improved land loans involve the most developed type of land. Interest rates and down payments are lower.

• Before customizing your home blueprint, ensure that your building style is compatible with the neighborhood's style. Find out if there's a Homeowners Association (HOA) code you must abide by. A common mistake is when the construction costs of your plans are a lot more than the average home price in the surrounding neighborhood. (This could result in getting turned down for a construction loan.) 
• If you’re looking for land in rural areas, look into a USDA Rural Housing Site Loan. 
• When construction on your home is completed, the construction loans become a regular mortgage.

Finding the Right Builders/Contractors

Before hiring:

• Ask for references
• Check their licensing
• Ask questions. You’ll need to see if you can communicate regularly.

You should have a flexible mindset as delays and the unexpected can and will happen.

Other Things to Consider Before Buying Land