I Don't Own Land and Want to Build A Home

If you're interested in building a home on your own land, you may wonder how you can do so without owning any land. This is a common point of confusion, but it's important to note that many people who build homes on their own lots do not own land when they first begin researching homebuilding (see Tip #3). In fact, starting the process with a builder can be a great way to learn about what to look for when searching for land and to get budget estimates for developing the land into a great building site. In this article, we'll explore the steps you can take to determine whether on-your-land homebuilding is a viable option for you.

Tip #1 - Explore online before meeting with builders

"Ready, set, Google!" Searching online is an excellent way to begin your research journey into homebuilding. You can start by searching for topics such as building a new home on your land, on-your-lot home builders near you, building a new home in a specific location, such as Central Oregon, or anything else related to building a custom home that comes to your mind. The on-your-lot home-building process is similar to building a custom home, with the main difference that you will work with a builder who specializes in value engineering and designing more affordable homes that do not cost millions. The goal is to build high-quality homes, with the option to customize the builder's stock house plans to fit your property's unique features and vision.

Still interested in learning more about home building, then go to step #2

Tip #2 - Shop Multiple Homebuilders

When shopping for home builders, it is like the "date your builder" phase, where you do not have to make any commitments. Instead, you can learn about what they offer and ask lots of questions. Some important questions to ask include what to look for when searching for land and whether they work with local real estate agents who specialize in land. If you receive a referral from a builder, it can be a great way to get a warm recommendation from someone who knows the ins and outs of land searches. Furthermore, if a builder is willing to review land before you buy, that is even better. It is always in the builder's best interest to help you when evaluating land and to provide their professional expertise on the land you're considering for a build. If your builder is too busy or does not offer this service, move to the next builder who will take the time to guide your land-buying process. Is it that important?

Quick Tip: When communicating with builders, you should ask which construction lenders they recommend. You will find a few that specialize in construction loans, and you will hear the names of lending institutions from multiple builders to start your list of construction loan specialists to interview when you are ready.

If on your land, homebuilding is still an option, go to step #3

Tip #3 - No commitment land search

When you are ready to start searching for land, it is recommended that you contact a local real estate agent or use Zillow to run land searches. By doing so, you will receive up-to-date land listings as soon as they hit the market. Once you have found a potential property, you can either drive by the lot or have a real estate agent schedule a showing so you can walk the property. It’s important to take the route that you feel most comfortable with. Remember that the purpose of this process is to determine whether building your own home on a lot is right for you, so try to enjoy the process!

Ready to continue learning? Proceed to step #4

Tip #4 - Learn about land and construction loans

Getting to know different construction loan lenders is crucial if you plan on building a new home on your lot. It will help you move quickly to get a loan approved and put your building lot under contract. Choosing a knowledgeable, skilled construction loan professional and lending institution is essential for home construction.

It's important to ask about their loan types, especially if you plan to buy land first and then wait to build. You will need a land loan, which not all lenders offer. Some offer only all-in-one or two-step construction loans, with a 12-month requirement that the home be completed within that timeframe. If you're not ready yet but expect to be in a few years, many loans will be your ticket to securing property for construction. When the time is right to build, you can start your construction loan process.

Wondering what's next? Move to step #5

Tip #5 - To build or not to build, that is the question

"It's time for me to decide - should I build a new home, purchase an existing one, or stay put and delay moving on from my current living situation?" This is a crucial decision, but you should feel confident in making the right choice, having conducted extensive research and being a well-informed consumer. Knowing you have thoroughly explored all the options for your next home should provide peace of mind as you make your decision.

Tip #6 - Got any questions about building a home on my land? Contact Us!

If you want to learn more about the option of building a new customized home on your land, even if it's just to explore if this is an option to consider, contact us by email at mybuilder@visionmakerhomes.com to learn more. We are here to help when you are ready!