Looking to build your dream home? Looking for land or a teardown home to purchase in Downers Grove? I can help you through the process.

 

Here are 5 tips to help you pick land to build your dream home:

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1) Decide on your dream location. Where do you want to be in 10-20 years? Do you want city living, suburban neighborhoods or a more rural location? Take time to get to know the area where you want to be.

 

Also, be sure to find out about local zoning ordinances and building restrictions. Zoning and other land regulations and restrictions can be accessed through public records at your local zoning office or city hall. In addition to ordinances, you'll also want to check access to roads and setbacks.

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2) Decide on your budget. The median cost of building a home is $297,000, according to the National Association of Homebuilders. You'll need money for a down payment and to build a new home on the vacant land. You'll also be responsible for property taxes, utility expenses, and more. 

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3) Determine what utilities you will install. Most people want water and electricity. Will you use green technology in your home? Septic or municipal? If you want septic, you will need to have a percolation test performed.

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4) Before purchasing any real estate, it's a good idea to talk to a real estate agent to help you evaluate whether your investment is a good idea. If you want some help figuring out whether a certain lot is right for building a home and how much it will cost, you'll want to hire a land planner. Much like home inspectors size up a house for potential flaws that you'll have to fix, land planners scrutinize land.

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5) Prepare for financing. Since there is nothing built on the land, some lenders may require a higher down payment. The load might also require higher credit scores and higher interest rates. However, the U.S. Department of Agriculture offers loans called Section 502 direct loans, which help low-income people buy land in rural areas and prepare them to build a new house from scratch.

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