The
following is an outline of some of the factors that prospective
buyers should consider before purchasing a lot on which to
build their new home. This outline has been prepared by Vermont
Built, Inc. as a guide to use in evaluating your prospective
building site. The information in this outline should not be used as a substitute for obtaining legal, environmental,
economic and other professional advise before making your
decision to buy land.
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Lot
and lot improvements are a major portion of the costs
involved in building a new home.
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Many
financing institutions consider and limit the ratio of
lot and lot improvements to the total construction cost
of your home.
- Choosing
and purchasing the land, on which you are going to build
your new home, is as important as choosing the home.
Time
and energy can be saved, as well as avoiding disappointments,
if you determine your total construction budget before
searching for land.
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The
most prudent first step in constructing a new home is
determining what you will, or are able to spend for
each major portion of the total construction package.
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The
major cost components are the lot, the lot improvements
and the home.
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By doing this you know how much is planned in your budget
for the purchase of land and land improvements, allowing
you to aim your search at lots that meet your budget
requirements.
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You
can speed your search by determining:
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the
distance from a particular focal point that you are
willing to locate
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particular towns in which you desire to build
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towns in which you do not wish to build,
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and
the size of the lot you desire.
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In addition, consider if you want your lot:
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wooded
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open
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on
a dirt road, or paved road
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in
a village, or would your prefer a more rural setting.
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The
more you define what you would like in a lot provides
you, and anyone searching for a lot for you a quick reference
in determining if you are going to follow up on a lot
lead.
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Remember, rarely do people find a lot with all of the attributes
they have outlined. Compromise, is almost always a
necessity in making your final choice.
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PERMITTING
This
is a very important consideration before purchasing a
lot.
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The
realtor or the landowner should be able to provide you
with what permitting is required before you can build
on the land.
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However,
this does not replace the need for you, or your representative
to investigate the need for any local and state permitting.
In addition, you should determine if there are any deeded
restrictions, or environmental concerns relative to the
parcel of land that you are considering.
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Always
consult with legal counsel relative to permitting and
other restrictions, before purchasing any land.
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Most lots on the market are permitted to the point where
only building and curb cut permits are required before
construction can begin.
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Permitting requirements are of crucial importance. They
can be expensive in both time and money.
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If
you consider purchasing a lot that does not have access
to a municipal sewer system, you should be certain that
the lot can support an on-site system, the type of that
system and the cost associated with its construction.
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Most
lots will have had soil testing done to determine if a
septic system can be built. In addition to the type of
system required, you should determine if a septic plan
design has been prepared by a Vermont licensed engineer.
If not, the cost associated with having an engineer design
a system will become part of the lot improvement cost.
- Even
though there are other considerations that will effect the
construction cost of a septic system, the major difference
in cost is related the type of system.
- The
system requiring the least cost is a conventional system.
- If
the soils do not support a conventional system, a mound
system is usually required. A mound system will cost as
much as four times what a conventional system will cost.
- In
most instances, the septic system is part of the permitting.
If required, be certain that a permit exist for the septic
system.
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In
addition to septic consideration, the nature of the soils
can impact the cost of construction.
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For
instance, the existence of ledge that requires blasting
can add thousands of dollars to the construction cost.
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We
suggest discussing this issue with your contractor before
purchasing a particular lot.
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IMPACT
FEES
Some
cities and towns impose an impact fee on any new construction
within the city, or town limits.
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There may be one fee, or a fee for the impact on each
municipal service.
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In
some instances these fees total several thousand dollars,
which in turn increases the cost of a new home by the
same amount.
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You
should always check with the town, or city clerk to determine
if there are impact fees associated with the construction
of a new home in the area you are considering building.
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Other
factors will have an effect on the lot improvement costs,
including:
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You
should involve your contractor early in your home construction
process. The contractor should be willing to visit any
site you on which you are considering to build your new
home, and to provide you with advice and cost estimates.
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