How to Buy Land to Build a House in Florida

So, you have decided to buy some land to build a house, and it may sound simple; however, you will find many decisions are ahead of you now. There is a great deal about the process to learn; however, many happy homeowners before you have taken the journey from finding and purchasing their land to building their homes. While it may seem a bit overwhelming to take matters into your own hands as you begin the process, you too can successfully buy land to build a house in Florida with the following things in mind. 

Set a Solid Budget

The budget is your starting point when you are ready to buy land to build a house in Florida. However, much more is involved than just the cost of the land and the home’s construction. For example, if you are buying raw land, you will need to perform due diligence to ensure you can build and add utilities and that there is a right of way for access.

I feel the best way to do this is to contact local builders and get a general idea of what the costs are to build in that area and what costs you should research.

An experienced professional like the professional investors at Cardinal Key Land can help you make sure you cover all your bases before you get started.

Search for Your Perfect Property

Now that you’re ready to buy land to build a house in Florida, there is no shortage of online listings and other sources to seek out the land you will build on.

First, however, it is worth talking with a local real estate professional, like the professional investors at Cardinal Key Land. We are well aware of environmental and zoning laws and upcoming Florida plans or anything else that could affect your property in the future.

Once you have zeroed in on a piece of property, your seller should have most of the basic due diligence done since they had to do that when buying the land. Ask for more pictures and property info like zoning, restrictions, easements, and access.

You should also be specific about what you intend to do with the property if you buy it. This will help the seller ensure the land is a good fit for you. Many times I’m able to find a property that suits people better than the one they initially inquired about, so if you are looking to build, paint a good picture for your seller.

Finally, reach out to the local county planning & zoning dept. and consider a real estate attorney to cover all of your bases. The pros at Cardinal Key Land have the connections in Florida to help you find the most highly regarded professionals in the industry.

Financing Considerations

First, note that most banks don’t like to loan on vacant land parcels, so you may have to take out a personal loan or potentially find a credit union to help if the seller isn’t offering owner financing.

If you have found a bank or institution to lend you money, you will need to prepare some documents to make the pitch. They will be specific about what they want, but you will need lots of income documents to prove you can repay the loan.

In addition, down payments for land tend to be larger, so if you plan to finance, you should be aware that the typical amount is between 20-50% of the value; there are no improvements on the land that add value for a lender.

Interest is generally higher for land loans as well, and there is no depreciation or tax write-off for undeveloped land. You will also need to budget for the costs to bring the land up to buildable condition.

With your bids for development and your costs calculated, you can now approach your lender so that you can buy land to build a house in Florida. The more serious your preparations are for the loan application, the more likely you are to gain the lender’s approval for your project.

Make the Purchase!

It is now time to make your offer to buy land to build a house in Florida. When purchasing a home, you can negotiate contingencies into the contract to ensure that the land is suitable for building. Additionally, you can negotiate the price and then close on the deal. 

Why not reach out to the professional investors at Cardinal Key Land, with the experience to help make buying land to build a house in Florida an easy process.

From selecting the perfect piece of land for your new home to closing and everything in between, you can rely on the experts at Cardinal Key Land to help make buying land and building your home smooth and easy. If you are ready to buy land, why not ask about our current inventory of the best property available in Florida. Contact Cardinal Key Land today at (404) 882-8169 to learn more!

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