The first step before you start looking for property, is to determine what are the priorities for you, your family and your project. Travel time to work, closeness to schools and shopping, and property taxes are just a few considerations when choosing the perfect location and land.
Before you make an offer to purchase the property that you like, do your homework and ask questions. Benchmark Building will review the current land survey of the property and walk the entire property. We will inspect it and recognize any challenges the property may present. This is a critical step in finding out first hand if you need to invest time and cost to improve or develop the property so that your home can be constructed in the desired location on the property.
Vacant property costs are often determined by the market value of nearby properties. Unfortunately, the cost to develop neighboring properties can be vastly different. To gain insight into the true value of a parcel, you must also know the costs to develop it.
Often people buy property based on the location or beauty, only to find out later that the development costs are so prohibitive that building their future home is no longer a possibility. These costs are derived from determining costs of several factors, such as tree clearing, land balancing, stump removal, wetland considerations, flood plain considerations, septic field requirements, water accessibility, building envelops, topography considerations, zoning ordianances, and Michigan Residential Code requirements.
Knowing this information is something you’ll want to be aware of before you purchase. Benchmark Building, a licensed building professional with over 20 years of experience, can determine these costs for you. Then you can determine if these costs are worth it to you and your family.
It is important to know what restrictions and obligations are tied to the land and the consequences if you don't, or can't, comply with those restrictions and obligations. Whether the property restrictions create a benefit or impose a burden is completely subjective. A real estate agent will be able to advise you if any property restrictions exist before you make your offer.
Lien - A legal claim against the property to secure the payment of an obligation or debt of the current property owner. This might be for unpaid taxes or for work done by the current owner for which payment has not been made. Liens will show up when a title search is done and most banks require that they are satisfied before the purchase can be completed.
Easement - A right to use your property for a stated or limited purpose. It is a formal agreement that transfers with an ownership change.
Restrictive Covenants - Legal obligations written into a deed of a property that is imposed upon the buyer. These restrictions can be simple or complex and can levy penalties against buyers who fail to obey them.
Homeowners Association (HOA)- Membership in a homeowners association is typically a condition of purchase and a buyer is not given the option to reject it. A homeowners association ensures that the collective rights and interests of homeowners are respected and preserved.
