If you’re thinking of sidestepping the housing shortage and bidding wars, buying a vacant lot to build your dream home may be the solution for you. Even if you do not know where to start, buying vacant land doesn’t need to be intimidating. We’ve put together a guide for your reference as you begin to navigate the vacant land purchasing process. A law firm experienced with real estate, like Wynn at Law, LLC, is a valuable resource to use during the buying process. Our lawyers specialize in real estate law and have assisted numerous clients with their land purchases.
Is Buying Land a Good Investment?
Typically, there is less competition for buying vacant land in Wisconsin than purchasing an existing property. This lack of competition means you have much better odds of finding a location to build your new home at a price you can afford. Furthermore, between the very competitive housing markets and the less-than-stellar quality of amateur flipped homes, buying a vacant lot gives you more flexibility than an existing home purchase.
Low Initial Cost
The initial investment and closing costs for vacant land are significantly less than buying a finished property. For some buyers, the lower upfront cost means they will not need to take out a loan for the land. For those who still need financing, there are a variety of loans that provide buyers with competitive options for their land purchase and future build, including improved land loans, USDA construction loans, builder loans, or new construction loans. Seller financing may be an option for buyers who struggle to secure a loan. Seller financing involves a legally binding contract and is just one of the many reasons to involve a real estate lawyer.
Purchasing vacant land and building a home in Wisconsin allows you to design the house of your dreams. Everything from a large master suite to handicap accessibility to a bowling alley in the basement is completely customizable when you’re building on your land. Even if it’s not a personalized build, there are a wide variety of modular and manufactured home options available!
What Steps Should I Take to Buy Land in Wisconsin?
Have Your Finances Ready
Buying vacant land is much different than the home buying process. Most land loans will require a higher credit score and larger down payment than a typical residential mortgage. Also, not all lenders offer land loans, so you may need to shop around to find a lender that meets your needs. Whether you are planning on applying for a loan or are looking for seller financing, it helps to have your finances in order and a budget set.
Have Goals Set in Place
Consider your investment goals before buying vacant land in Wisconsin. For example, do you want to buy land to build on, lease, or buy and hold for a while and “flip” it later for a profit? These investment strategies will influence your buying decisions on what type of land to buy, how you finance the land, and how long you will hold onto the lot.
Find the Lot You Want
Take your time finding a real estate agent specializing in lot and land sales. After viewing the lot you are considering purchasing, research the area to determine if there is easy access to the land or any restrictions. Can you build on the land? Are there utility services, including cable internet? Does the investment align with your current and future plans? Is the land in the county and school district you would like to be in? Potential buyers should consider each of these factors before purchasing land in Wisconsin.
Hire Someone Who Can Help
Along with a real estate agent, it’s helpful to assemble a team of real estate professionals. A real estate lawyer, contractor, and surveyor are some professionals you might consult with for your vacant land purchase. These professionals can assist in the buying process by ensuring you make the right decisions before completing the transaction.
How Can a Lawyer Help Me in the Purchasing of Land?
Having an experienced real estate lawyer on your side during the vacant land buying process is beneficial because she can help you manage the different moving parts of the transaction and can give you legal advice regarding your options if an issue arises. For example, Attorney Wynn will review the title work for easements and liens when you buy property. Buying vacant land includes added worries with zoning and restrictions; these are potential roadblocks that a real estate lawyer can help you navigate. She is a vital member of your team. Attorney Wynn is there to protect your interests and make sure you can complete the process as well as avoid delays, problems, and pitfalls.
Offer to Purchase Contract Contingencies
Before making an offer on vacant land, talk with a real estate lawyer. Attorney Wynn can protect you by adding pre-sale contingencies to the purchase contract. The purchase offer should include contingencies such as financing and appraisal to cover all of your bases during the land purchase process.
Review Agreements and Contracts
Hiring an experienced real estate attorney like Attorney Shannon Wynn of Wynn at Law, LLC means that you have years of knowledge and first-hand experience at your disposal. Our real estate lawyers often write and review contracts and offers to purchase. She will ensure you are protected during and after the transaction and answer any questions you may run across.
Save you Money
Having Wynn at Law, LLC in your corner when buying vacant land can help you save money. Our team researches zoning restrictions, ordinances, covenants, road access, utilities, easements, and required building permits that affect the offer to purchase and seller financing contracts, if applicable. If you run into roadblocks while preparing to build on vacant land, a real estate attorney also helps in this arena. Zoning boards, historical commissions, licensing boards, and easements are potential barriers that Wynn at Law, LLC helps clients navigate to save time and money.
Get a Wisconsin Vacant Land Consultation
If you are looking into purchasing vacant land or any other type of property in Wisconsin, it is highly recommended to consult with a local real estate lawyer. To prepare for the ins and outs of your vacant land transaction, reach out to Wynn at Law, LLC for a real estate law consultation today! Wynn at Law, LLC has three convenient law office locations throughout Southeastern Wisconsin covering vacant land transactions in: