Purchasing a vacant lot in Southwest Florida offers a unique opportunity to build your dream home from the ground up. Whether you’re eyeing a spot in Cape Coral, Fort Myers, Punta Gorda, or beyond, understanding the nuances of buying land can help you make an informed decision. Here are some tips to get you started:
1. Consider the Lot Type
Choosing the right type of lot is crucial. Oversized lots offer more space for a larger yard or pool, while corner lots can provide easier access and more flexible floor plan design options. Standard lots typically fit well within community guidelines and are a desirable choice for uniformity. If you prefer a cozier space or a lower maintenance property, a smaller lot might be ideal.
If you are considering a waterfront property, evaluate aspects such as privacy, water access, and potential insurance costs, as these can significantly influence your lifestyle, insurance, and home value.
Each type of lot has its pros and cons depending on your specific needs and the type of home you plan to build.
2. Know Your Financing Options
Obtaining financing for a vacant lot is vastly different than for an existing home. Explore all available options with a qualified lender or consider paying cash. There are many lenders that offer loan products that can help you achieve your vacant lot with equity in or after the sale of your current home. Once the lot is purchased, you might find it easier to get a construction loan, as the owned land can serve as collateral with equity working towards your loan amount.
3. Evaluate Utility Access and Flood Risks
Check if the lot has access to necessary utilities like water, sewer, and electricity. Some areas might still rely on well water, which could be a deal-breaker if it is not what you want. Additionally, consider the flood risks by consulting FEMA’s flood zone maps, which could affect your building plans and insurance needs.
4. Pay Attention to the Neighborhood
The value of your future home is significantly influenced by its surroundings. Make sure the neighborhood reflects the kind of community you want to live in. Building your home gives you the power to choose your model, but it’s crucial that your selection matches the quality and style of nearby properties to ensure a good investment. Fortunately, Sposen Homes offers a range of models to match every lot and neighborhood.
5. Review Future Development Plans
Understanding the future developments planned around the lot can impact your decision. Positive developments such as new parks or schools can enhance property values, while industrial developments might detract from your living experience.
6. Budget for Additional Costs
Beyond the price of the lot, budget for property taxes, title insurance, and potential lot specific construction costs. These additional expenses can add up, so it’s important to account for them in your overall budget.
Unique to Sposen, we offer a courtesy drive-by lot inspection. We have a qualified team member put eyes on the lot, as well as use online resources to determine the best possible estimation for building on that specific lot. During this process our team will also determine if there is any active wildlife on the property that will need to be assessed. Few builders will do their due diligence when it comes to lot prep estimates for their allowances. Providing this service prior to signing a contract gives a better understanding for both parties of the estimated building costs for a specific lot.
7. Become Familiar with Allowances
Most home builders include “allowances” in their home prices. These allowances are only estimated costs associated with building your selected model on that lot. These fees include permit and impact fees, fill dirt, builders risk insurance, inspections, surveys, utilities, and other lot specific costs associated with the development of that particular piece of land. These allowances are often not fully known before a lot is acquired, which is why a lot inspection is important.
8. Work with a Knowledgeable New Home Specialist
Navigating the purchase of a vacant lot requires expert guidance, especially when you plan to build a home. Partner with a professional who specializes in land acquisitions and understands the specifics of the Southwest Florida market. Our fully licensed New Home Specialist Team has over 45 years of combined experience. They know lot values, location amenities, and more, ensuring you find the perfect location for your Sposen home.
By carefully considering all of these factors, you’ll be better prepared to find the perfect lot where you can build your dream home and enjoy everything Florida has to offer. Our team is dedicated to helping you every step of the way.