I like living in Southern California. It’s mostly sunny and the weather is temperate.
But a three bedroom, four bathroom, 2,000 sqft, house in Culver City, a swanky former industrial suburb of Los Angeles will set you back about $2 million. Sitting on a lot size of 6,000 sqft, that comes to $333 a square foot.
Compare this to 16 acres of land in Hillsboro, Kentucky which comes with a 3 bedroom, 2 bathroom home, swimming pool, pond with bridge access, 3 car detached garage, and land suitable for fishing, horseback riding, and hunting turkey and deer.
That comes to about $1 a square foot. That’s not a typo.
All things considered, it should not be 1/333 the price.
That’s the major reason buying land and building a homestead is so attractive to me. You get far more for far less.
As I continue to research, here are some of the things I’m looking for in a piece of land on which to build a homestead.
| Some key takeaways: • Walk your property during or right after rain • Get a recent land survey • Pay for a title search to discover encumbrances and any mineral rights withholdings |
Property Features
- 30 minutes to a hospital and fire department, and a few hours from an airport. Where there are hospitals and fire departments there will also be gas stations and grocery stores.
- Access to well water and preferably with a lake or stream.
- 10+ acres (if 10 acres were a square, that would be roughly 660 feet or 200m a side, so large enough to get lost in).
- Not in area with frequent fires, hurricanes, tornados or flooding. I can deal with earthquakes and snow.
- Not flat. Elevated in some areas.
- Gets southern facing sun if you’re in the northern hemisphere. That means it’ll get more sunlight throughout the day, and more in winter.
- Trees
There are a myriad things to consider when purchasing a piece of land, and I would strongly advise in retaining an experienced real estate agent who specializes in land to guide you through this process.
Once you’ve selected some property, here are some of things you should do and look out for.
Walk the Property
Walk the entire property, from the boundaries to the interior. If there are signs of squatters or trash, ensure that the current owner deals with it before you make the purchase.
Ideally, conduct a walk of the property when it’s raining to see how the property deals with the water flow.
Get a Land Survey
The survey should show you the boundaries of the property, the topography of the land, where the utilities are located, where you can build on the land, and any easements that other parties have on it.
Comprehensive surveys should also show environmental features that affect the property, like if it is in a flood zone.
A survey’s cost will start at about $700 and go up with the size of the property and work involved.
The seller may have had the land surveyed already. If it is not recent, I would get a new one done.
Floodmaps
Your property’s title report should have flood maps and show natural features like flood zones. Also, FEMA, the Federal Emergency Management Agency, maintains reliable maps of flood zones. Google maps also has a toggle for flooding.
Buying land in a flood zone is not an automatic disqualifier, unless it’s marked A or V, which area areas at highest risk of flooding. If you intend to get a federally backed mortgage in a home in those areas you are also required to purchase flood insurance, so there’s an added cost.
Areas marked B, C and X on FEMA floodmaps have less risk of flooding.
Zoning and Deed Restrictions
What is the land zoned for?
Can I build my dream home on the property?
Can I clear trees in the area where I want to build my house?
Where can I put it?
How many other homes can I put on it?
There could be restrictions on unobvious things like… you can keep horses and cows, but not pigs or chickens.
So ask your agent as many questions as you can think of.
These documents are in the public record and you should be able to obtain them from the city, but it always helps to have another set of experienced eyes to check over them.
Access to the Property
Who owns the access roads to your property. Do you have to go through a neighbor’s property to get to yours if it’s inland from a main road?
Electricity
If you intend to run power lines into a new construction, it can cost thousands and more if the property is any distance from the city’s grid.
I intend to run my house on solar power, so I will need to ensure that there’s enough sunlight and that I’m able to get the necessary building approvals which vary by city and state. For example, in California, building permits are required before installing solar panels.
Tip: assume you need a permit to do anything!
Water Source
Are you going to connect to the city’s water?
If you’re relying on well water, test the quality of the water.
If there are lakes and streams, test the quality of the water in them.
What are the water rights to the stream and lake?
Even if your property abuts a lake, you might not have the rights to build a dock.
In some areas, you can’t get a permit to build on the property without a water source.
Sewage
Where does the waste go?
If there’s a septic tank, have the owner empty it. Perform an inspection while it’s empty.
The size of septic tank often depends on the type of septic system, local and state government regulations, the ecology of the ground, and the expected volume of wastewater based on the size of the home.
Ensure that the current septic tank is sufficient for the property you intend to build. Septic tanks are measured by the number of bedrooms not the number of bathrooms, so if you’re installing a new septic tank, have it rated for 4 bedrooms at least.
The most common test is a soil percolation evaluation, often referred to as a “perc test”. A perc test will determine how viable the underground soil is to properly handle and filter septic tank effluent. If the soil can’t absorb fluid, it may not be possible to build a septic tank.
Internet
You might have spotty cell service and no cable lines running to your property, but you do have Starlink.
Starlink operate a constellation of thousands of mini-satellites in low-earth orbit that now cover much of the world with high-speed internet access.
The receiver is low profile and is mobile, unlike DirecTV’s bulky fixed unit. Monthly cost is roughly $50 a month for unlimited data and the hardware costs $500.
Title Search
This is often conducted by real estate attorneys and dedicated title companies and involves searching through the public record to check for liens, judgements, encumbrances and any abnormalities on the property.
Confirm that the current owner is not withholding mineral rights. By retaining mineral rights, they could have the right to mine on your property after you’ve purchased it.
Talk to Neighbors
Neighbors are often some of the best sources of information, especially if they’ve lived there for some time.
Would they buy the same property again if they had the chance?
What do you dislike about living here?
Valuation
Get comparable values around the area to see if you’re paying a fair value.