How to Build Your Own Home – Lesson 2 – The Building Lot – Part I

Because it’s easier to find or design a house plan for a given lot rather than find a lot that suits a specific house plan, I recommend you buy your land first, before you acquire any plans.

A. Where You Need To Look For Land

Once you know the size home you’re going to build, you have an idea of where you should be looking for land. You want to build your home in an area where homes are of comparable size and value. In rural areas you will see all kinds of weird stuff. You’ll see a $600,000 home next to a $60,000 home or a mobile home next to an estate. As you get closer to a city or metropolitan area, you’re going to be regulated by zoning laws and/or covenants in a subdivision. These zoning laws and covenants will normally dictate the minimum size home you can build. Even in areas with no zoning requirements, the price of the land will determine the size home you will build. For example, you wouldn’t build a $50,000 home on a $200,000.00 lot. You could, but that wouldn’t be financially wise.

Note About The Appraised Value: If you are building a home for resale, you need to be acutely aware of what it will sell or appraise for in a given area – before you purchase the lot.

B. How To Find A Lot

1. Real estate agent or broker

In most cities a real estate agent or broker can provide you with a list of many available lots for sale in your area.

2. Local newspaper

Your local newspaper is a good source for locating lots for sale by an owner.

3. Free publications

There are free publications in many areas where individuals will list a lot for sale.

4. The Internet

The Internet is providing more and more bulletin boards where individuals can advertise a lot for sale.

5. Land Developer

You may be able to purchase a lot from a local land developer. If you do not know the difference between a builder and a developer, let me explain.

A developer is an individual who will buy raw land, clear it, install the sewer lines, gas lines, water lines, and streets, and then sell the developed lots to builders. Sometimes the developer is also the builder.

When the market is booming, a developer could go into a room full of builders and choose whom they will and will not sell to. But here’s the deal -the developer may require a chosen builder to purchase a minimum of five lots. The builder may want in the subdivision, but may not want to start five homes. You could ask this builder if he would sell you one of his lots. I have bought many lots from other builders this way. The only way you’re going to know if the developer or builder will sell is to ask! When the market is slow, most developers, anywhere in the country, would probably be more than happy to sell you a lot.

More Than One Reason To Question A Purchaser’s Enthusiasm When Buying A Dream Home

There is a wide range of groups of individuals looking to buy property. Several look for buying their main home rather than renting a house. Alternatively, other people examine property as a way of increasing assets and income from streams of earnings. This reason behind purchasing a home has a tendency to happen when employment reaches higher levels, and the economy is robust.

Recently, underlying property values have fallen across much of the world as a result of concerns of job loss. Largely, the primary market places where property owners live are affected with decreased property values. This has also had even more powerful impact within secondary markets such as vacation home purchases due to their much more discretionary nature.

The actual impulsive dynamics of buying a second home or vacation residence is commonly more in evidence. Whilst a person is not within their normal environment, they will tend to be open to recommendations. Most commonly these occur if on vacation or visiting another location. At this time home buyers in many cases are motivated by strong marketing by overseas developers, fractional ownership firms, as well as local real estate firms. What drives people to make buying decisions whilst on vacation?

* Lower price levels – This is often that the property can be bought for the relatively low sum of money. This makes the decision for the investor a lot easier. There is also a inclination for individuals to become carried away by the idea of owning their very own piece of real estate in a “dream” location.

* Payment conditions – appealing offers such as where original reservation deposits are quite affordable, along with installment payments during the building stages when the construction is not completed, popularly known as “off-plan buys”.

* Investment returns – one more factor impressed on the purchaser is that they will benefit from revenue from their purchase in the form of rental returns. One of the standard strategies utilized by developers is always to make forecasts of income growth ahead of financial institution rates of interest upon savings. Frequently a assured return is paid out for several years, however this is generally balanced by the developers pricing framework that is definitely higher to accommodate this incentive.

* Furniture as well as other bonuses – they are generally included as inducements to have a customer feel at ease. It is actually possible for the developer to give away electric products along with other material furnishings to enhance the particular bundle.

Investment in property frequently takes place whenever marketing and advertising by developers and also brokers offers an array of incentives. Often times ownership of these kinds of properties is beneficial, although you ought to evaluate any kind of home buy of this kind before making a commitment.

Buying second properties in vacation locations is common, thus showing that property investments of this sort should be emphasized. The last guidance is always to consider your ability to make repayments on these kinds of investments prior to committing to make a buy. At least otherwise these types of investment can provide robust returns long into the future.

Bend Oregon Real Estate – Buying a New Home

Now is the time to buy a new home in Bend Oregon. The prices of homes in Central Oregon have been going up in value steadily over the past several years. The Multiple Listing Service of Central Oregon reports that home values have almost doubled in the past four years.

Land values have been going up and new construction has been booming for the last five years. Now the market is in a slow down and is being flooded with inventory. Homes are taking longer to sell and builders are being forced to lower their prices.

New home developers and builders were able to sell homes in the past few years before they broke ground. They had buyers waiting in the wings to purchase these homes as soon as the lots were developed and the builder priced the homes. The buyers chose their finish materials and waited for construction to be finished.

The winter of 2006 is going to be the best time to buy a new home in Bend Oregon. The National Association of Realtors reported “In the West, existing-home sales declined 3.1 percent to an annual pace of 1.25 million in September, and were 23.8 percent lower that a year earlier. The median price in the West was $332,000, down 5.1 percent from a year earlier.”

One developer/builder in Bend recently lowered prices $20,000 across the board on all of his homes. He now has eight homes sitting finished. He is also including central air-conditioning, upgraded tile counter tops, a refrigerator and backyard landscaping. These free upgrades and lower prices were not available last year.

As new and used home sales continue to fall and inventories continue to build Bend is starting to look like a candy store for home buyers. The new home market will show some of the best buys because builders have to sell. They cannot afford to sit on millions of dollars of inventory.

As we go into winter and the temperature starts to drop the heat bills start to go up. This increases the holding costs of a developer/builder. Builders are also starting to pay closing costs for a buyer which indirectly gives today’s buyers a better value yet.

Developers are usually large businesses that can afford to sell a few houses at a loss to get them through the winter. One builder has lowered his asking price of one particular home to almost $50,000 lower that the same floor plan sitting vacant down the street. He has several homes finished and sitting vacant and his interest payments continue and now winter heat bills will be adding to his holding costs.

This “buyer’s market” won’t last for long though. Interest rates are still around 6.25 percent and the Federal Reserve just held tight with no interest increase. So interest rates should stay low over the winter.

Gasoline prices are falling and it was just reported by the Bend Bulletin, Central Oregon’s local news paper that “Deschutes County jobless rate sinks To 3.7 percent.” Bend continues to grow. There are good jobs available and people continue to move to Bend.

Bend is also one of the most desirable places to live in the United States. If you live in Bend you can drive 30 minutes west and be in the mountains with great fishing, hunting, hiking and biking. You can drive 30 minutes east and be in the high desert with spectacular mountain views and fresh clear air.

It is said that Bend’s local ski mountain, Mount Bachelor has some of the best powder in the Northwest. Golf magazines also report that Bend is one of the best golf communities in the West. Golf is available for golfers of any budget from inexpensive public courses to luxury private courses.

The Deschutes River runs through the middle of Bend. It is a nationally famous trout stream and also has Steelhead and Salmon runs in its lower reaches. Because Bend is such a great place to live there will always be a demand for new homes.

Local Realtors look for prices to stabilize and start back up next spring. David Lereah, the chief economist for the National Association of Realtors said, “When consumers recognize that home sales are stabilizing, we’ll see the buyers who’ve been on the sidelines get back into the market, and sales will be at more normal levels in the wake of the unsustainable boom that we say last year.”

The next few months will be the best time in a long time to buy a new home in Bend Oregon.