Land For Building New Modular Homes In Virginia
Blue Ridge Builders
We can help you find land and build your new home
General Considerations When Purchasing Land To Build A New Home
- This will likely be one of your largest purchases
- Don't spend more than you can afford
- Setting a budget sets everything else
- Always take into consideration all your expenses
- Getting approved is important and only the beggening
- Never purchase property without seeing it
- Find a builder you can trust
- Don't forget about real estate costs and fees
- Always do your due diligence
One of the most important aspects of buying land for building a new modular home is getting pre-approved or pre-qualified. We will delve into what to else to consider when purchasing a property to help educate and prepare for the development journey ahead.
Blue Ridge Builders interfaces with everyone and everything from state officials to neighborhood covenant agreements to make sure the land you buy is right for you. Always keep the sacred rule in mind: “Don’t purchase more home than you can afford.” This will set your budget.
Blue Ridge Builders Land Acquisition And Development Process
What Are Plat Maps And How To Read One
Plat maps or “Plats” are basically a map of your land. Plats will show you information pertaining to the property such as the boundaries, size, easements, identification information, and existing conditions. The plat is a crucial element to describe the property.
Plat Map Basic Elements
What Is A Perc Test and Why You Need One
Percolaton Tests or “Perc Test” measures the water absorbtion rate of soil which determines what kinds of waste water filtration system you will need. The test is performed by digging holes around the property, filling them with water, and waiting to see the rate at which the water gets absorbed into the soil. The soil profile is a main factor of whether or not a property can perc for the septic system you need. A high shrink and swell soil, for example, does not allow water to absorb very well so a conventional septic system might not be feasible. An alternative or engineered system can be very costly and avoidable by finding land that has good soils.
You want a letter from the soil company performing the test to state the property can perc for however many bedrooms in the home as a “conventional gravity fed” system. Be careful with the wording too! You can perc for a conventional system but the home and septic system might require a pump.
Undesirable Soils Map For Building Modular Homes
Is There A Clear Title For The Property
The title for land is what describes the owners rights for the property. It is important the title is clear of any issues. You should only buy a piece of property contingent upon there being a clear title. Sometimes you can find a great deal on land because there is an issue with the title. By filing a quitclaim deed you can remedy the issues and transfer the title but there is risk of paying to file and it not work.
Land Use And Zoning Regulations For Modular Building
You have to understand the land use and zoning regulations of the property before you purchase. Regulations setup to guide and govern development can dictate what you can build. Some zoning regulations do not allow for certain kinds of modular buildings. Some land use regulations might not allow for residential uses. Contacting the local zoning office to verify any regulations. These rules and guidelines ultimately shape the project.
Is There Clear Right-Of-Way Access To The Property
Sometimes land can become land locked when parcels are bought, sold, subdivided, and access is forgotten. There are laws in place that prevent the creation of land locked or “orphaned” parcels. When there is no access to a property you must file to have easements created across adjacent properties. Although you have every right to have access to your property, the time and money spent obtaining easements can be long and costly. Having clear access to land is paramount.
Deed Covenants And Restrictions
So a Deed is the written document that is the main instrument to transferring the title of ownership. With the Deed come rules called covenants. Covenants describe laws and regulations that enable or restrict what you can do with your land. Always read all the covenants and restrictions associated with a development. A good example of a covenant is when a subdivision requires all new utilities to be underground and out of site. Another good example is requiring minimum square footage for homes.
What are Liens, Easements, and other Land Encroachments
Liens can cloud a clear title and cause issues when purchasing land. A lien is put upon a property when payment is due to a creditor. A simple example of this is a tax lien from not paying property taxes. There are many other kinds of liens such as construction liens, landlord liens, mechanic’s liens etc…Make sure there are no liens on a property or you may be liable when title is transferred.
Easements are placed on portions of the property that give permissions to others to use that delineated portion of land for a specific use. Utility easements allow public utilities installation and maintenance while other easements such as access easements allow a clear path of travel over the property. Easements and setbacks can determine where things can be built. You would not want to build your house over a utility easement in the off chance a public utility company has to dig up the earth and destroy your house to fix a gas leak.
Encroachments are almost the same as easements except there is no legal permission granted. This could be a building that encroaches beyond a property line or any other structure or site development that is not authorized.
Floodplains, Steep Slopes, And Other Environmental Constraints
Before you buy land you should perform an in depth feasability study or due diligence report to understand all the constraints of the property. Some of the biggest constraints are due to environmental factors. Flood plains, steep slopes, poor soils, sensitive vegetation, protected animal species, rock outcroppings, blue line streams, and view shed restrictions are typical environmental issues.
The best way to see what is going on with land is to visit the local GIS (Geographic Information Systems) page. Blue Ridge Builders help understand all the geographic opportunities and constraints. Here are a couple GIS pages in central Virginia to aid in the land search. Albemarle County GIS, Culpeper County GIS, Louisa County GIS.
Drinking Water, Electrical Power, Gas, and Communication Utilities
Drinking water is very important. If you are not on a public water utility line then you will have to drill a well. Keep in the mind, costs go up if the well contractor has to bore through bedrock or drill deeper than expected.
Electrical power must not be overlooked. If there is no power to the site you might have to pay the local power company to install service. Sometimes community development regulations require new power utilities to be underground and out of sight. Expect to pay $20 a linear foot for that service. Most power companies will provide overhead service free of charge because they will gain you as a customer.
Gas lines can be tapped into or tanks can be buried on site if gas is desired.
Communication utilities are usually provided by the communications company provider in the area.
What To Look For On A Site Visit
Last but certainly not least is the site visit. It’s important to visit the site and get a feel for the site characteristics. Bring a plat map, topo, aerial photos etc…Take lots of pictures and videos of the site. Take a visual reconnaissance of everything on the property. Know what you have before you buy.
Blue Ridge Builders can perform site visits and ultimately help you buy land for modular home building.
What Is Your Budget For Buying Land
The absolute first thing you have to think about when buying land is how much land you can afford. There is an industry rule of thumb to determine your budget for building a new home. It’s called the 25% rule. Basically your monthly payments for the house should be no more than 25% of your total monthly income. Though certain other loan types will qualify you to use upwards of 29% of your total income for mortgage payment.
25% x Total Income = Affordable Mortgage Payment
This general calculation will give you a ball park feel for how much you can afford. Lenders will take your total monthly expenses and divide that by your total income to calculate your “debt-to-income ratio.” Usually you want to be below 45% (DEBT / INCOME). Keep in mind there is a balance between how much you spend on the land and the house itself.
Total Expenses / Total Income = Debt To Income Ratio
$2,000 / $6,000 = 33% Debt-To-Income Ratio
These are all tools to help you understand how much land for a new modular home you can afford. What you can afford will will guide the land purchasing process.