This page may be printed
out and used to help you with your planning
Selecting and
Buying Your Home Site
Determine your needs...
Begin your land search
by identifying the general area you wish to live in, the size of lot or
acreage you want and the type of land - flat or hilly, wooded or cleared.
Then determine the amount of money you can spend on land. This will allow
you and any real estate agents or land brokers you work with to limit
your search to properties that truly interest you.
Make sure the land meets all requirements...
In addition to your personal
criteria, your house site must be able to meet building, health and other
local agency requirements, be zoned for manufactured homes, and be able
to physically accommodate the house. Of course, the property also must
have a clear title, or you must be able to take title.
Also, find out whether
the land is in city or country jurisdiction and what the local building
permit requirements are. While there is a uniform state set up code, different
counties may have different guidelines for septic systems and other elements
of development. You should also check with your lender to make certain
the site qualifies for a land package. Some lenders, for example, may
not finance a home on a private road.
You can get much of this
information from the real estate agent who you are working with. Your
manufactured home dealer and lender also can help you.
Get professional advice on suitability and
costs...
When you have found property
you like, ask your manufactured home dealer to inspect the site. He or
she can advise you whether the lot is large enough for the home and can
offer suggestions on different ways of placing the house on the property.
Also have a general contractor look at the land and give you an estimate
on site development costs and the time needed to complete the job. The
contractor's estimate should include such items as site clearing, grading,
footings, water supply, sewer or septic system, electrical supply and
road access, as well as any necessary permit costs and connection fees.
The estimate may also include porches, gutters, and other amenities. Getting
a detailed bid will help you avoid any unseen costs and will prepare you
for knowledgeable negotiations with the real estate agent or owner.
Negotiate the details before buying the
land...
When negotiating the
land purchase, it is important to remember that you are a "cash"
buyer. The seller will not have to hold a contract. He or she will be
cashed out at the closing of the loan and that sometimes can translate
into a discount when buying property. Depending on the type of loan you
plan on getting, the seller may need to agree to allow you to develop
the site prior to closing, and upon receipt of a letter of commitment
from your lender that your loan is approved. An FHA land package loan,
for example, can close only after all work has been completed.
When you and the seller
have agreed on the price and any conditions to the sale, an earnest money
agreement will be drawn up. If any development questions are still unanswered
at this time, (e.g. the ability of the property to percolate), you may
want to include a contingency clause on the earnest money agreement. If
local neighborhood covenants apply to the land, ask for a copy and review
them carefully. Once the earnest money agreement is drawn up and signed,
you can proceed to other aspects of the deal.