Buying Acreage To Build A Home


Buying Acreage To Build A Home
By Scott Rogers • January 24, 2008
Recently, one of my blog readers asked a variety of questions about buying land for building a home. Let's delve into a few of the related questions and issues! What is the average price per acre in Rockingham County? The cost per acre of land varies across Rockingham County, mostly depending upon the size of the tract, and the property location. For example, in 2007 land in Rockingham County north of Route 33, with tract sizes of 1-10 acres sold at an average rate of $33k/acre. These 22 sales, however, ranged in price per acre from $5k to $220k. When a buyer starts considering a particular property, we would then start looking at average price/acre for tracts most similar to that property. Does land appreciate? Almost always, yes --- because we have a fixed supply of land, as opposed to housing which can continue to be built. However --- it often doesn't appreciate as quickly as land with a house built on it, since land sales do not comprise as active of a market as home sales. When evaluating a particular property, what should I consider? It is imperative to investigate many aspects of a piece of land before purchasing. Some, but not all, of these include: water source (public water, well, cistern, etc) waste treatment options (public sewer, conventional septic system, alternative septic system, etc) utility availability (electricity, phone, cable) covenants and restrictions access easements right of ways setbacks flood plains school districts zoning uses of surrounding parcels These are just a few things to be considered, and with each individual property, there are typically a few other areas to research. Do you have to build immediately in a subdivision? Each subdivision is a bit different in their expectations, but those expectations are almost always spelled out in the same document -- the covenants and restrictions. Rarely does a subdivision require that building start within any given time frame, however, many subdivisions will require that construction be completed within a certain amount of time after it has begun. Buying land can be somewhat complicated, but is an exciting process. There's nothing like being a Virginia land owner! Receive Updates by Email Recent Articles: There Are Plenty Of Types Of Houses That Exist That Just Are Not Available To Purchase Home Sales By Price Range In The City Of Harrisonburg Are You Compromising On Aspects Of Your Next Home That You Can Or Cannot Change Later? How Much Slower Are The Winter Months In Our Local Housing Market? Rockingham County and New Home Sales Drive Surge in Area Housing Market Find The Balance Between Optimistic And Realistic Home Pricing Room Size Is Difficult To Understand Solely From Real Estate Photos How Much Would You Value Not Having To Prepare Your Home For Showings? One Out Of Four Homes Is Taking Longer Than A Month To Sell Consider The Cost Of Your Planned Renovations When Planning Your Offer
Have any questions? Contact Scott Rogers at 540-578-0102 or scott@funkhousergroup.com
Based on information from the Harrisonburg-Rockingham Association of REALTORS® or its MLS, for the period Jan 1, 2000 through Nov 21, 2024 (unless otherwise noted).
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