For many of us, having our own piece of land is the stuff of dreams. However, if you're prepared to make that ambition a reality, you might be unsure of the precise procedure to follow when purchasing land. So let's examine the essential actions you must take to acquire land.

1. Locate a Piece of Land

These days, you have access to a wide range of instruments thanks to the abundance of online listing sites that present land for sale across the nation. If you discover a plot for sale nearby, you may also make use of regional resources like classified advertisements or just get in touch with sellers directly.

You can enlist the assistance of a knowledgeable real estate agent to make the project operate more smoothly. They can help you every step of the way and will have access to even more search resources.

2. Make inquiries and review recent surveys.

Check the most recent land survey as soon as you've identified a piece of property you want. This will provide you with all the information you require regarding the legal lines and easements. It's crucial to conduct a survey if one hasn't been done in the previous year or two.

Remember to verify recent environmental tests as well to make sure there are no signs of contamination. Utility access is another factor to take into account, not to mention services like phone and internet. It is crucial to understand that you will have access to potable water, electricity, and other necessities, such as road access, if you intend to construct a home on your property.

Lastly, be sure to comprehend any zoning constraints that can thwart your plans.

3. Assurance of Payment

You should submit an offer if the plot you've selected meets the criteria. However, you'll probably need to find financing unless you intend to pay in cash. You'll need to find a lender ready to take the risk because lenders are a little more cautious about providing loans for land acquisitions than they are about providing standard mortgages.

Even then, you can anticipate paying a down payment of up to 50%. It helps if you want to start construction on your plot right once. If you have a construction plan in place, this is probably closer to 20%. You can find a variety of funding choices in both the US and Canada:

Canada

• Mortgage secured by real estate: A mortgage similar to a conventional mortgage, usually requiring a greater down payment and higher interest rates.

• Mortgage for construction: Perfect for purchasing a piece of land on which to construct a home.

• Agricultural loan: For land that will be used for agriculture as opposed to construction.

U.S.

• Construction-to-permanent (CP) loans are the best option if you want to finance both the land purchase and the construction at the same time. These are the most typical loans that lenders provide for buying land.

• Lot loans are much less popular, come with high interest rates, and are intended for borrowers who don't have urgent intentions to build. They also call for a sizable down payment.

• Owner financing is an option that the seller may present. Compared to traditional methods, down payments are often cheaper, but interest rates could be higher.

4. Make a Proposal

You can confidently make a written offer to the seller once you have financing secured. You can make a conditional offer, just like when buying a house, with various requirements that must be satisfied before the sale can close. The seller has the option to counter offer, and both parties can continue negotiating until an agreement is reached.

5. Get a land inspection

It's important to inspect the land before you sign anything, just like you would with a home. Make sure to conduct a soil test, run a title search, and double-check zoning laws and restrictions. In order to ensure that you won't run into any issues once the land is in your name, it's crucial to hire professionals to complete these tasks.

When everything is to your satisfaction, you can proceed and complete the sale!