Building your dream home on vacant land for sale in Gulfport, MS is a large undertaking that pays off when done right. To ensure the best possible results, hire a real estate agent experienced in land purchases who can help you find the right land that’s ready for breaking ground.
Buying land requires a bit more knowledge and diligence than buying a single-family home. If you think you have found the perfect site for your home, ask the questions below to make sure it’s a solid investment.
Is it zoned for residential?
Rezoning land is not easy. It requires approval from several local bodies, like the county planning commission and zoning office, and necessitates consulting with a zoning attorney. Save time and money by checking that the ordinances for the land align with what you want to do and see on the property.
Is it in a flood zone?
This question is an essential one in Gulfport, MS. The coastal city continually invests in its flood protection program, but the weather won’t always cooperate. Because of their proximity to water and the higher resulting likelihood of floods, coastal properties have higher insurance premiums and construction costs.
Find out if your land is located in an especially vulnerable area. This fact may require you to follow more stringent building codes to ensure the safety and longevity of your home.
Here are several parts of your home you need to devote attention to when building in a flood zone:
- foundation type and materials
- wind-resistant wall design
- impact resistance for windows
- roofing options
- utility installation and protection
- layout for outdoor amenities (pools and decks)
Are there utilities?
Installing utilities on a piece of land ranges anywhere from $10,000 to $30,000. The final cost depends on location, so if the opportunity is there, it’s better to pay a premium for land that already comes with these connections.
If you want to purchase raw land, prepare your finances for the added expense. Confirm with the county which utilities can be installed, and request quotes from utility companies that offer coverage where your land is located.
Since the lack of utilities lowers a property’s value, don’t hesitate to negotiate a price reduction or certain contingencies with the seller.
Are there restrictive covenants?
Restrictive covenants (also called deed restrictions) are a set of rules that “run with the land” and must be followed by all owners of that particular parcel in perpetuity (unless there’s an expiration). Like zoning ordinances, covenants stipulate lot dimensions and proportions, house height, and even rental restrictions.
Know which covenants apply to the land you’re purchasing, because you will have to adhere to them during the construction of your home. In Harrison County, enforcing covenants falls on a homeowners association or, in the absence of one, the property owner.
What are my financing options?
The path to loan approval can be more challenging for land buyers. Land and lot loans have higher interest rates and less favorable borrower terms compared to residential mortgage loans. There are several reasons for this:
- Buying and selling land is complex.
- The process requires the buyer to be familiar with zoning regulations, environmental testing, and other inspections absent from residential properties.
- Land has a smaller buyer pool, which further limits its liquidity.
- There’s a higher probability of borrowers defaulting on land and lot loans.
As a result of these challenges, most land purchases — especially those made outside of agricultural areas — are paid in cash. When land buyers do get approved for financing, it’s usually in the form of construction-only or construction-to-permanent loans.
What is your construction timeline?
Expect the process of buying land and building on it to last at least two years.
Finalizing a land deal is highly involved and typically progresses as follows:
- Land search
- Initial evaluation and offer
- Financing preparation
- Due diligence
- Environmental testing
- Land inspection and survey
- Title clearance
- Land transfer
Many of these steps happen simultaneously, so remembering what to do next while meeting deadlines represents a major challenge for land buyers. It can get overwhelming quickly without the guidance of an expert.
While buying land to build a new home is not as easy as buying an existing house, its successful execution is highly rewarding — you get your home built exactly the way you want it.
Are you searching for a real estate agent with extensive experience in Gulfport, MS real estate? Buying a house or property requires in-depth knowledge in the local area and the specifics of each process. Enlist the help of an experienced professional today. Get in touch with Owen & Co., LLC Real Estate team today, and contact us at 228.822.9870, or send an email to info(at)owenandco(dotted)com.
