If you’re in the market for new construction, one of the first items you’ll need to address is where your home will be built: on a developed lot or undeveloped land. Let’s review the pros and cons of each.
Lots, or developed land parcels typically partitioned by builders, have unique advantages. They are often priced to sell and owners can expect a significant price appreciation in the future. Thanks to the builder, homes on lots are generally connected to water and sewage systems, have electric, phone and cable lines wired and have paved road access. A qualified builder will also disclose information such as drainage and soil issues, making it easier for the buyer to weigh their options.
Owning on a lot has its cons. For the sake of mass production, builders create cookie cutter floor plans. Every upgrade, whether it’s marble in the bathroom or cherry cabinets, will cost more. Homes in developments are typically spaced close together, limiting outdoor space for some and creating concerns for those who seek more privacy. Homeowners in developments are also subject to HOA fees, which can take a toll on household budgets. But HOA fees do come with their fair share of benefits: trash pick-up or lawn care, for instance.
Building on an undeveloped plot of land gives you the freedom to choose your location. Those interested in building on land will face more expenses, but have the ability to customize the home to their needs and wants. The homeowner may also enjoy a more eco-friendly lifestyle, especially if the home is in a rural area with cleaner air.
Aside from higher costs, the disadvantages to building on land include the potential for zoning changes to affect construction or ownership down the road. Homeowners may also need to install a septic, dig a well or run electric, phone and cable lines. The land itself may also present some challenges, such as buried oil tanks.
Source: RISMedia’s Housecall
Published with permission from RISMedia.