True Cost? Don’t Get BLINDSIDED by Hidden Costs When Buying Land

Advice for Tiny House Owners

As the tiny house movement continues to gain popularity, more and more people are looking to purchase land to build their own tiny homes. However, the process of purchasing land can be fraught with hidden costs and pitfalls that can quickly derail your tiny house dreams. In this article, we’ll share some valuable advice from a real estate expert on how to avoid these hidden costs and ensure a successful land purchase.

Meet John, the Real Estate Expert

John is a seasoned real estate professional with years of experience in the field. His YouTube channel, “Land Buying Tips,” is dedicated to helping people navigate the world of land purchasing, offering practical advice and guidance on a variety of topics. You can check out his channel here: https://www.youtube.com/channel/UC9b8QXgYcJYXhQFyLW6Yl4Q

Key Takeaways from John’s Video

During his video, John shares some important insights on how to avoid hidden costs when purchasing land. Here are some of the key takeaways:

Key takeaways from John’s video include:

 

1. “You need to know what to expect and how to plan ahead before you sign that dotted line on that contract.” – John emphasizes the importance of conducting thorough research before committing to a land purchase, as hidden costs can quickly add up.

2. “It’s important to know there’s a lot of things that you can do before you sign the contract and even after you sign the contract.” – John explains that there is a due diligence period during which potential buyers can investigate various aspects of the land, including permits, restrictions, easements, and encroachments.

3. “You want to walk the property yourself.” – John recommends personally exploring the land to ensure there are no unexpected issues, such as buried trash or environmental hazards.

4. “You have to make sure there’s nothing that has been buried underneath that beautiful grass in the last 10-20 years that will prevent you from building your home.” – John warns about potential issues with land that may not be immediately apparent, such as prior waste disposal or contamination.

5. “You’re going to have a building permit, you’re going to have a septic permit, you’re going to have a well permit.” – John highlights the various permits and associated costs that may be required when building a tiny house on a piece of land.

Resources mentioned in the video include:

– Land Buying Tips YouTube channel: https://www.youtube.com/channel/UC9b8QXgYcJYXhQFyLW6Yl4Q
– Video on surveys and encroachments: https://www.youtube.com/watch?v=ABCDEFGH (Link to be provided)

What else?

As someone who is passionate about the tiny house movement, my personal advice would be to always prioritize thorough research and planning when considering a land purchase. By taking the time to understand the potential hidden costs and challenges associated with a piece of land, you can avoid unexpected expenses and ensure that your tiny house dream becomes a reality. 

Are you considering purchasing a piece of land? Whether it’s for your dream home, investment, or development project, it’s crucial to make an informed decision. We’ve put together a comprehensive table outlining the essential steps you should follow before committing to a land purchase. Don’t miss out on this valuable information! Carefully examine the steps listed in the table below and create a personalized checklist to ensure a smooth and successful land buying experience. Empower yourself with knowledge and confidently take the first step towards owning the perfect piece of land.

Important Steps to ConductWhat to be careful about
1. Determine your needs and objectivesBe clear about your goals and purpose for the land, whether it’s for personal use, investment, or development.
2. Research the location and surrounding areaConsider factors such as accessibility, nearby amenities, and potential growth or development in the area.
3. Check zoning and land use restrictionsEnsure the land can be used for your intended purpose and be aware of any potential restrictions or limitations.
4. Conduct a thorough site inspectionLook for signs of environmental issues, flooding, drainage problems, or other potential hazards that may affect the land’s value or usability.
5. Confirm property boundaries and easementsVerify the exact boundaries of the property and be aware of any easements or rights-of-way that may affect your usage or access to the land.
6. Investigate utility access and connectivityDetermine if utilities such as water, electricity, and sewerage are available and the costs associated with connecting them to the property.
7. Review the title and ownership historyEnsure the seller has clear and legal title to the property, and be aware of any liens, encroachments, or other issues that may affect ownership.
8. Obtain a land survey and appraisalGet an accurate assessment of the property’s size, dimensions, and value to ensure you’re making an informed decision.
9. Understand the financing options availableResearch the various loan options and requirements specific to land purchases to ensure you have the appropriate financing in place.
10. Consult with legal and professional expertsSeek advice from attorneys, real estate agents, or other professionals familiar with land transactions to ensure all aspects of the purchase are handled correctly.

FAQ:

1. How can I find out about any hidden costs associated with a piece of land?

You can do thorough research during the due diligence period, which typically lasts 14 days. This includes checking permits, restrictions, easements, and encroachments.

2. Why is it important to walk the property myself?

Walking the property allows you to spot any potential issues, such as buried trash or environmental hazards, that may not be immediately apparent.

3. What permits might be required when building a tiny house on a piece of land?

Building, septic, and well permits are just a few examples of the permits that may be required, depending on the specifics of your land and project.

4. Can I place a mobile home or park a motorhome on the land while building my tiny house?

This will depend on the specific restrictions and regulations in your area. Be sure to check with your local authorities before making any decisions.

5. How can I avoid giving up my mineral rights when purchasing land?

Make sure to review the contract carefully and consult with a real estate attorney if necessary to ensure that you retain your mineral rights during the land purchase process.

Table of Contents

Picture of Peter Velin

Peter Velin

Peter is a true inspiration for anyone looking to live a sustainable, debt-free lifestyle that is in harmony with nature. Unlike most people, he chose to break away from the traditional norms of society and build his own mortgage-free tiny home. From a very young age, Peter always had an adventurous spirit and a love for nature. He spent most of his childhood exploring the great outdoors and dreaming of a life that was simple, sustainable, and debt-free. As he grew older, Peter began to realize that the conventional way of living was not aligned with his values. He saw how much waste was produced, how much debt people carried, and how little time they had to enjoy life. Determined to create a better life for himself, Peter set out to build his own tiny home. He researched different sustainable building materials, designed the perfect layout for his needs, and put in countless hours of hard work to make his dream a reality. Peter's tiny home is not only functional and beautiful, but it also aligns with his values of sustainability and mobility. Living in a tiny home has given Peter the freedom to travel and explore new places without the burden of a mortgage or a house that ties him down. He has also become more connected with nature, as his tiny home is designed to be energy-efficient and eco-friendly. With a small carbon footprint, Peter is making a positive impact on the environment and setting an example for others to follow. Peter's journey to debt-free living and sustainability has been an inspiration to many. He has shown that it is possible to break away from the traditional norms of society and live a life that aligns with our values. By choosing to live in a tiny home, Peter has created a lifestyle that is simple, sustainable, and fulfilling. He is proof that living with less can bring us more happiness and freedom than we ever thought possible.

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