Throughout my career as a REALTOR®, I have worked with many people who purchased land in Virginia with the intention of building their own homes.  When you aren’t able to find a home that fits your specific needs in the area you want to live in, building a custom or semi-custom home is an option.  Though the process can feel a little longer and have more steps than purchasing a pre-existing home, it is still a viable alternative for buyers searching for a home.  Here are some things to know about buying land in Virginia.

Before Construction 

There are a lot of moving pieces to manage before construction even begins on a piece of property. Now is the time to think through the entire building process and determine what is important to you for both the land in Virginia you purchase and the home you build. Making changes to a home during the building process can be costly, so you want to really define what are needs and wants in your home before you begin.

Create a timeline

Building your own home on a piece of land in Virginia takes more time than purchasing a pre-existing property.  Do you want to purchase the land first and then build later?  Do you want to purchase land and begin construction right away?  What is a realistic timeline for selling your current home? Having answers to these questions will help guide you through the land buying process.

Finding the perfect property

Finding the right property for you can take time.  Enlisting the help of an expert REALTOR® to help you locate a piece of land that is the right acreage, location, and is suitable for a home is a great way to start.  While land typically stays on the market longer than a pre-existing home, great properties do sell faster. 

What makes a great property in terms of home building sites:

  • acreage with an open home site
  • a completed perc
  • proximity to shopping for everyday essentials
  • not in a FEMA designated flood plain
  • residential zoning

Funding Your Purchase

Getting financing for land can be more difficult than obtaining a mortgage for a home.  Some mortgage companies do not offer land loans.  Here are some of the most common options for buyers, but, as always, it is important to talk with your local lender to find out which ones are available to you.

  • Purchase with cash
  • New construction loan  These loans let you finance both the purchase of the land and the construction of your home.  The requirements for a new construction loan are stricter and you will need a ten to twenty percent down payment.  New construction loans convert to mortgages once the construction is complete.

Find a builder and make a budget

It is important to have a builder selected once you have purchased the land.  This means you will have to do some research into local builders before you purchase the land in Virginia to find one that is a great fit for you.  It’s important to get some quotes for the cost of building a home.  These costs may change slightly depending on the property you purchase; for instance a builder may have to remove more dirt from a hilly piece of land in order to accommodate a walk out basement.

There can also be additional fees, like the cost to run utilities to the home, any county or local construction fees, and unplanned surprises; remember to account for these when developing a budget.

Can you build here?

Not all pieces of property are suitable for homes.  Other than zoning regulations, some properties may not be able to support a septic system if you are not able to hook into the public water and sewer systems.  There may only be certain spots on the land where your home can be constructed.  When you work with a REALTOR®, the contract signed between the buyer and sellers contains a soil study time period where the buyers can investigate the ability to build on the land.  For example, perc tests can determine what type of septic system is required on the property.  If the buyers find out during the soil study time period that the property isn’t suitable for building a home, they can exit from the contract.

Having clear answers to these questions can help make your future build successful. Do you have further questions about buying land in Virginia? I can help! Feel free to contact me for help!

Contact Sean!