Need advice: Any ATOTers ever bought land to build a home?

[Descartes]

So, I've decided that I'm going to stay in the Atlanta area for a variety of reasons. I've also decided that there simply isn't going to be a home that I really like, so I'm going to build my own.

My two business partners and good friends had a total of four homes built by the same builder, so I have all the connections I really need. I already have the house plans, so once I find appropriate land I'll get with the builder and get it started.

Any ATOTers ever been in my situation? I'm assuming so, and while I've read all the online "How to buy land" guides I'd appreciate some direct advice from someone that's been there.

I'm looking for about 2-3 acres if that makes a difference. Thanks!

 

[RKS]

Ask the builder to look over prospective land, it might be too difficult/cost prohibative to build on.
Check if the land will have the ability to run underground utilities to the home.
Look at any prior deeds on the land to see any covenants and restrictions.
Check with the county engineers for zoning issues.

edit: I'm not sure is 2-3 acres in GA would be consider rural/farm land giving you a slight tax exemption.

 

[Juddog]

Make sure that you have the land measured in Summer. Some land will have different densities based upon season (if it's cold, soft ground may seem hard, and your house might slowly sink if built upon, happened tons of times in WNY, true story).

 

[skyking]

I've purchased land and built my own home twice now.
Now is the time to inspect property for sure. What looks good in the summer might have standing water in the winter/spring.
Look at the utility location/availability. Look at potential areas af huge development nearby. A seemingly idyllic location can become a hellhole after a developer slaps down 600 new high density homes without sufficient infrastructure.

 

[Descartes]

Originally posted by: RKS
Ask the builder to look over prospective land, it might be too difficult/cost prohibative to build on.
Check if the land will have the ability to run underground utilities to the home.
Look at any prior deeds on the land to see any covenants and restrictions.
Check with the county engineers for zoning issues.

edit: I'm not sure is 2-3 acres in GA would be consider rural/farm land giving you a slight tax exemption.

Didn't know that about rural/farm land. This is in Alpharetta (I would love to stay in midtown, but there simply isn't any land in areas that aren't highly questionable), so I'm doubting it, but it's worth a check. Thanks!

 

[Descartes]

Good points about the weather aspect. I hadn't considered that at all...

Originally posted by: skyking
I've purchased land and built my own home twice now.
Now is the time to inspect property for sure. What looks good in the summer might have standing water in the winter/spring.
Look at the utility location/availability. Look at potential areas af huge development nearby. A seemingly idyllic location can become a hellhole after a developer slaps down 600 new high density homes without sufficient infrastructure.

That's one thing I focused on. I'd rather have the least expensive home than the most expensive. This particular area is building very nice homes, so I'm hoping to get into the area before everyone else does.

 

[fuzzybabybunny]

1. Land cost
2. Property tax
3. Insurance liability
4. Development cost
5. Improvement
6. Road
7. Electricity
8. Sanitation
9. Engineering
10. Drinking water
11. House type, garage, landscaping, driveway
12. Test ground and lake water for pollution
13. How much neighbors paid for their property
14. Location and convenience, for you and future buyers
15. Future development
16. Projected increase or decrease of land and house value in the future
17. Seasonal things - flood, misquitoes, pollen

 

[Descartes]

Originally posted by: fuzzybabybunny
1. Land cost
2. Property tax
3. Insurance liability
4. Development cost
5. Improvement
6. Road
7. Electricity
8. Sanitation
9. Engineering
10. Drinking water
11. House type, garage, landscaping, driveway
12. Test ground and lake water for pollution
13. How much neighbors paid for their property
14. Location and convenience, for you and future buyers
15. Future development
16. Projected increase or decrease of land and house value in the future
17. Seasonal things - flood, misquitoes, pollen

:Q All good points, thanks. Luckily, the builder will take care of all infrastructural aspects, but I didn't consider the ground water testing. It's in a well-known area of suburban Atlanta, so shouldn't be any problems.

 

[Linflas]

My parents did and it turned out to be a royal PITA. You will need the patience of Job to deal with all the different players and their excuses on why things are not done when promised or when done not done correctly.

 

[fuzzybabybunny]

Originally posted by: Descartes
Good points about the weather aspect. I hadn't considered that at all...

That's one thing I focused on. I'd rather have the least expensive home than the most expensive. This particular area is building very nice homes, so I'm hoping to get into the area before everyone else does.

Having the least expensive home may not work in your favor. The value of the home may not increase as much in the future as your more expensive neighbors. In addition, many communities have a sort of standard for home size and expense. Having the cheapest, smallest house in the neighborhood may work against you when you sell your home because people who are looking for a home in your area are looking for a house like your neighbors, not a house like your's. They are looking for a community standard; they may not want to live in a community where they can constantly see all these great houses and then a cheaper one sticking out like a sore thumb. A cheaper house may also devalue the houses around it. A nice big two story 4 bedroom 3.5 bath house sitting next to a smaller two story 2 bedroom 2.5 bath house with a cheaper look to it may sell for less than a similar big house with another similar big house as its neighbor.

 

[fuzzybabybunny]

Originally posted by: Descartes

Originally posted by: fuzzybabybunny
1. Land cost
2. Property tax
3. Insurance liability
4. Development cost
5. Improvement
6. Road
7. Electricity
8. Sanitation
9. Engineering
10. Drinking water
11. House type, garage, landscaping, driveway
12. Test ground and lake water for pollution
13. How much neighbors paid for their property
14. Location and convenience, for you and future buyers
15. Future development
16. Projected increase or decrease of land and house value in the future
17. Seasonal things - flood, misquitoes, pollen

:Q All good points, thanks. Luckily, the builder will take care of all infrastructural aspects, but I didn't consider the ground water testing. It's in a well-known area of suburban Atlanta, so shouldn't be any problems.

There's also things like schools and building a sellable house.

If the house is only going to house two people, it may actually be a good idea to build a larger house than needed with four bedrooms, 2.5-3.5 baths, 3 car garage, etc. If you only built a house with two bedrooms and 1.5 baths, when it comes time to sell the house your market will be limited to households of two people with no plans to have a family. With the larger house, your potential market increases to couples with families, couples planning to have a family, people who feel that buying a larger house is a better investment, and in general richer people who have money to spend on larger houses.

Are there good schools nearby for aforementioned families? Is the area going to experience a business or industry boom in the future that will increase the value of your property as new workers seek homes?

 

[Descartes]

Originally posted by: fuzzybabybunny

Originally posted by: Descartes

Originally posted by: fuzzybabybunny
1. Land cost
2. Property tax
3. Insurance liability
4. Development cost
5. Improvement
6. Road
7. Electricity
8. Sanitation
9. Engineering
10. Drinking water
11. House type, garage, landscaping, driveway
12. Test ground and lake water for pollution
13. How much neighbors paid for their property
14. Location and convenience, for you and future buyers
15. Future development
16. Projected increase or decrease of land and house value in the future
17. Seasonal things - flood, misquitoes, pollen

:Q All good points, thanks. Luckily, the builder will take care of all infrastructural aspects, but I didn't consider the ground water testing. It's in a well-known area of suburban Atlanta, so shouldn't be any problems.

There's also things like schools and building a sellable house.

If the house is only going to house two people, it may actually be a good idea to build a larger house than needed with four bedrooms, 2.5-3.5 baths, 3 car garage, etc. If you only built a house with two bedrooms and 1.5 baths, when it comes time to sell the house your market will be limited to households of two people with no plans to have a family. With the larger house, your potential market increases to couples with families, couples planning to have a family, people who feel that buying a larger house is a better investment, and in general richer people who have money to spend on larger houses.

Are there good schools nearby for aforementioned families? Is the area going to experience a business or industry boom in the future that will increase the value of your property as new workers seek homes?

That was one of my main concerns. We don't have any children yet, but we wanted a safe area and good schools. This area is one of the better suburbs of Atlanta. Good schools, a lot of job opportunities, quiet, safe, high standard of living, etc. The area has already experienced a bit of a boom, but it's still growing. A lot of fortune 500 companies are out there, not to mention my company as well (we're small, so, fortune.... 10,000,000,000 maybe? ).

We're also definitely considering resale value. The houses in this area are quite large, so we're going with a 5 bedroom, 3 car, 3.5 bath home with a full basement. This is the plan we are looking at. We won't likely be selling for quite some time though.

Thanks for all the input! Many things for me to consider...

 

[fisheerman]

I can provide you with a little info if you need

first are you going to buy in an established neighborhood or are you buying raw land?

this will make the biggest difference in what your amount of leg work is going to be just to get a buildable lot for your home.

If you are moving into a neighborhood and buying the lot from a developer then the you are pretty safe in that all of the legwork of getting a buildable lot approved is already done.

If you are looking for raw land then you are going to have to incur some cost just to see if you can get a house on the propert. Here are a few.

1. in our area (souther va) it is now required that all land have a phase 1 enviro impact study done anytime land is being converted from raw land to residential building lots.
runs between 1k-1.5k.

2. next if you are going to tie to existing service (water/sewer) you will need to contact your local utility department to get fees and make sure that you can tap in and cost. tap fee here run 6-8k.

3. if you are not going to tie in to existing service (septic tank/well) then you are going to have to contact the local health department and see if the land percs for a septic system. Here (southern VA) you also have to have a SDMP (storm drainage management plan) done for any new residential lot to handle by an engineer. These can get expensive because it requires ditching of the property. Some people are opting for alternative systems. A well will have to be put down as well.

4. You will need to have land cleared if it isn't open field. This is something that a lot of people overlook and the cost can be expensive as well.

5. Installation of a drive way entrance which will require a permit and some heavy equipment contractor for installation.

either way you can write up real estate contracts that give you 30-45 day grace period once a contract is signed that allow you to do this investigation and back out of the contract in case you find land that isn't buildable. This is were most people that are out buying land to be self builder go wrong. All land isn't buildable and there has been alot of people paying top dollar for unbuildable land.

This is just for the land and prep. Starting the house has just as many hurdles.
Give me somemore info on what you are looking at and I can provide you with the steps necessary for the house construction as well.

late
-fish

 

[erub]

Originally posted by: Descartes

Originally posted by: fuzzybabybunny

Originally posted by: Descartes

Originally posted by: fuzzybabybunny
1. Land cost
2. Property tax
3. Insurance liability
4. Development cost
5. Improvement
6. Road
7. Electricity
8. Sanitation
9. Engineering
10. Drinking water
11. House type, garage, landscaping, driveway
12. Test ground and lake water for pollution
13. How much neighbors paid for their property
14. Location and convenience, for you and future buyers
15. Future development
16. Projected increase or decrease of land and house value in the future
17. Seasonal things - flood, misquitoes, pollen

:Q All good points, thanks. Luckily, the builder will take care of all infrastructural aspects, but I didn't consider the ground water testing. It's in a well-known area of suburban Atlanta, so shouldn't be any problems.

There's also things like schools and building a sellable house.

If the house is only going to house two people, it may actually be a good idea to build a larger house than needed with four bedrooms, 2.5-3.5 baths, 3 car garage, etc. If you only built a house with two bedrooms and 1.5 baths, when it comes time to sell the house your market will be limited to households of two people with no plans to have a family. With the larger house, your potential market increases to couples with families, couples planning to have a family, people who feel that buying a larger house is a better investment, and in general richer people who have money to spend on larger houses.

Are there good schools nearby for aforementioned families? Is the area going to experience a business or industry boom in the future that will increase the value of your property as new workers seek homes?

That was one of my main concerns. We don't have any children yet, but we wanted a safe area and good schools. This area is one of the better suburbs of Atlanta. Good schools, a lot of job opportunities, quiet, safe, high standard of living, etc. The area has already experienced a bit of a boom, but it's still growing. A lot of fortune 500 companies are out there, not to mention my company as well (we're small, so, fortune.... 10,000,000,000 maybe? ).

We're also definitely considering resale value. The houses in this area are quite large, so we're going with a 5 bedroom, 3 car, 3.5 bath home with a full basement. This is the plan we are looking at. We won't likely be selling for quite some time though.

Thanks for all the input! Many things for me to consider...

Wow, 5 bedroom, 3 car, 3.5 bath house with a full basement..that's huge! Quite an upgrade from your condo in Midtown. Moving out of midtown, we won't be neighbors anymore

 

[Descartes]

Originally posted by: erub

Originally posted by: Descartes

Originally posted by: fuzzybabybunny

Originally posted by: Descartes

Originally posted by: fuzzybabybunny
1. Land cost
2. Property tax
3. Insurance liability
4. Development cost
5. Improvement
6. Road
7. Electricity
8. Sanitation
9. Engineering
10. Drinking water
11. House type, garage, landscaping, driveway The troubling reality for me is that the fiance (married in a few months) won't feel
12. Test ground and lake water for pollution
13. How much neighbors paid for their property
14. Location and convenience, for you and future buyers
15. Future development
16. Projected increase or decrease of land and house value in the future
17. Seasonal things - flood, misquitoes, pollen

:Q All good points, thanks. Luckily, the builder will take care of all infrastructural aspects, but I didn't consider the ground water testing. It's in a well-known area of suburban Atlanta, so shouldn't be any problems.

There's also things like schools and building a sellable house.

If the house is only going to house two people, it may actually be a good idea to build a larger house than needed with four bedrooms, 2.5-3.5 baths, 3 car garage, etc. If you only built a house with two bedrooms and 1.5 baths, when it comes time to sell the house your market will be limited to households of two people with no plans to have a family. With the larger house, your potential market increases to couples with families, couples planning to have a family, people who feel that buying a larger house is a better investment, and in general richer people who have money to spend on larger houses.

Are there good schools nearby for aforementioned families? Is the area going to experience a business or industry boom in the future that will increase the value of your property as new workers seek homes?

That was one of my main concerns. We don't have any children yet, but we wanted a safe area and good schools. This area is one of the better suburbs of Atlanta. Good schools, a lot of job opportunities, quiet, safe, high standard of living, etc. The area has already experienced a bit of a boom, but it's still growing. A lot of fortune 500 companies are out there, not to mention my company as well (we're small, so, fortune.... 10,000,000,000 maybe? ).

We're also definitely considering resale value. The houses in this area are quite large, so we're going with a 5 bedroom, 3 car, 3.5 bath home with a full basement. This is the plan we are looking at. We won't likely be selling for quite some time though.

Thanks for all the input! Many things for me to consider...

Wow, 5 bedroom, 3 car, 3.5 bath house with a full basement..that's huge! Quite an upgrade from your condo in Midtown. Moving out of midtown, we won't be neighbors anymore

Trust me, I really, really hate to leave midtown. I love this neighborhood. I'd stay if I could, but I'm getting married in a few months and need something we can grow into a bit. Alpharetta is like The Truman Show to me, and the adjustment will be difficult at first Ahh, the sacrifices we make...

 

[olds]

Don't forget to check zoning issues like set backs and easements (if any).
We have 5 acres and it's shaped like a slice of pie. As you get down to the narrow tip you have less options as far as building because of the set backs from the property line.
EDIT:
We are zoned Ag.

 

[crystal]

Road access? -> you paid for cost of pavement
City requires a fire hydrant -> you paid for it.

You need a lot of patient. And make sure you got it inspect every steps of the way.