Raleigh Custom Homes
Buyers Guide - Buying a Lot or Land in the Raleigh/Triangle Area
Five Easy Steps To Buying a Lot: Step 1, Plan Your Budget
Buying a lot or land for your new custom home can involve some big decisions! By following these five steps, you'll find the right location, something that fits your lifestyle and your budget, with the beautiful surrounds so common in the Raleigh area.
How Much Should You Spend on Your Lot or Land?
All lots and land under consideration will be some combination of location, size, amenities, cost, and buildability. As you begin to narrow down your options, you may decide that some factors are more important than others.
Get Preapproved - Know How Much Your Total Budget Should Be
Before you even start looking, take some time with your favorite lender to see what your total "construction and land" goal should be. Get these questions answered, and you'll be better able to find something that truly fits your lifestyle.
- What monthly payment is best?
- What total amount do I qualify for?
- What will happen if interest rates increase?
Contact us for a list of local lenders experienced with lot and land financing.
What Will Property Taxes Be?
Keep in mind that you'll have to pay property taxes at some point for your new home. It might be rolled into the loan, by which a portion of the total tax bill is added to your monthly payment each month, then paid to the city or county at the end of the year out of an escrow account. If not, you may be responsible for property taxes in one lump sum at the end of the year. Talk to your lender about which payment method you should use.
Property taxes outside city limits will always be lower than taxes inside city limits. Chapel Hill has some of the area's highest property tax bills, while Chatham County outside city limits has some of the lowest property tax rates in the Triangle.
How Much Should I Pay for my Lot or Land?
As a general guideline, the cost of your lot or land should be no more than 15-20% of your total "house and land" budget.
$150,000 total budget = $22,500 to $30,000 lot or land cost
$200,000 total budget = $30,000 to $40,000 lot or land cost
$300,000 total budget = $45,000 to $60,000 lot or land cost
$400,000 total budget = $60,000 to $80,000 lot or land cost
$500,000 total budget = $75,000 to $100,000 lot or land cost
An exception might be made for a large amount of acreage - for instance, you might reasonably construct a home with a $250,000 construction cost on a 10 acre parcel which costs $100K. Just make sure your planned home corresponds with other homes in the neighborhood/area, to protect your future resale value.
Is This Lot or Land Offered at a Reasonable Price?
Talk to your builder or an experienced land agent about the lots or land you're considering. Land and lot purchases are different than finished home purchases - you'll want to keep multiple factors in mind that affect the finished cost of your planned new home in the Raleigh area.
An experienced land agent will be able to compare your lot price with other lots and/or homes in the area, and work with you to provide the best overall value for your new home.
Five Easy Steps to Finding the Right Lot or Land for Your New Raleigh Home
Don't worry, at Stanton Homes we help throughout the entire process of finding a lot or land and building your new custom home, and are here to answer any questions you may have.
Buying a Lot in Raleigh Step 1: What's Your Budget?
Buying a Lot in Raleigh Step 2: What Amenites Should You Consider?
Buying a Lot in Raleigh Lot Step 3: Determine Your Lot Size
Buying a Lot in Raleigh Step 4: Is Your Lot Buildable? How Do You Know?
Buying a Lot in Raleigh Step 5: What is the Total Construction Cost for Your Lot? (Avoiding Hidden Costs)
Raleigh NC New Home Resources - How to Build a Custom Home in Raleigh
New Custom Homes in the Raleigh Area - and throughout central North Carolina
Stanton Homes makes building your new custom home easy! We'll guide you through the entire process. Your custom home is going to be extraordinary when you create it with one of the nation’s top fully involved builders and the high quality materials and craftsmanship that our reputation is built on. View available homes here.
Call 919-278-8070 to find out more about new homes in the Raleigh area.