Alternative Housing

What Is a Perc Test?

If you're buying land, no whether you plan to build your dream home from scratch or place a manufactured or modular home on it, you'll probably need a septic system (unless you're buying a city lot that can easily be hooked up to the sewer).  A perc test (short for percolation test) is something that's required to design a septic system. 

Here's a good explanation from Wikipedia:

"A percolation test (from percolation, colloquially called a perc test) is a test to determine the absorption rate of soil for a septic drain field or "leach field". The results of a percolation test are required to properly design a septic system. In its broadest terms, percolation testing is simply observing how quickly a known volume of water dissipates into the subsoil of a drilled hole of known surface area. While every jurisdiction will have its own laws regarding the exact calculations for the length of line, depth of pit, etc., the testing procedures are the same.

In general, sandy soil will absorb more water than soil with a high concentration of clay or where the water table is close to the surface."

Here's a how-to on running a perc test.

Many times, when you're buying land from another owner, a perc test may have already been done.  Make sure to ask as this means you can avoid an additional cost.

Getting Paid for Your Land Via Conservation Easements

If you're looking into alternative housing options, it may be because you have a dream of getting away from other folks and finding an affordable way to put a home on some private land.  Manufactured homes are relatively affordable, but what about the land itself?  Depending on where you live, acreage can be pretty darned pricy.  And if you want something that is somewhat convenient to town (it's nice to have some privacy from your neighbors, but it's nice to be able to drive to the grocery store without packing a lunch too), prices go up even higher.

Whether you have land already or you are looking to buy acres in the country/forest/etc., you may want to look into conservation easements offered in your area.  This is where you agree to keep grass, trees, or whatever the requirements are on your property and the government pays you, because you are providing a wildlife refuge of sorts, a place where animals and vegetation can continue to do what they've done for millenia without threat of development. 

How much you can get paid for your land depends, of course, on where you live, your type and size of land, and numerous other factors, but you can get an idea by typing in your city/county into a search engine along with the words "conservation easement".

In the Spokane area, where I live, you can get paid as much as $5,000 per acre for grasslands.  Not bad considering land isn't too expensive out here (not compared with the Seattle area, for isntance).

Understanding Setbacks

Out hunting for land?  Looking for the perfect piece for your future home or vacation cabin?  You'll definitely want to have a good look at the property's zoning restrictions before you sign anything.  Make sure all the compliances the county or city has laid out are agreeable to you.  One thing to look at when you're deciding if a piece of land is right for you is the rule on setbacks.

Setbacks determine how far from the edges of the lot you must build your house.  It's important to know this, because it will help you figure out where you can set your home.  Usually, side setbacks are closer to the property line than front and back setbacks (though not always).  Setbacks tend to be smaller in urban areas (as narrow as three feet from the property line in the city) or much larger in rural areas, where there are often rules about how close you can build to the street or the neighbors' property lines.  Keep in mind that setbacks also apply to outbuildings.  Thinking of adding a guest house?  A detached workshop?  A shed or even a pool?  These structures, too, need to be within the area defined by the setbacks.

In short, take a good look at the setbacks and think about the buildings you want to put on the property before deciding if a piece of land is right for you.

Source: Building Your Own Home For Dummies

"Land" vs. a "Lot" -- What's the Difference?

Buying land?  Do you know the difference between a lot and a piece of land?  Is there one?  "The two are in fact quite different," says Building Your Own Home for Dummies. "All lots can be considered land but not all pieces of land can be called lots."  The book goes on to explain how to differentiate between the two:

A lot or "finished lot" is a hunk of property that is ready to support a house.  A lot may or may not have utilities (ie. electric, gas, telephone, water, sewer) on site, but hookups are generally close by.

Land is typically used to mean any piece of property without a habitable structure on it.  Land may be residential, commercial, or agricultural.  If you're looking at a piece of "raw land," that usually means the spot isn't ready for building (i.e. it needs to be cleared).

Source: Building Your Own Home for Dummies

Easements, What Are They and Why Do They Matter?

If you're considering buying a piece of property, whether as a future home site or for recreational use, you'll want to read the fine print and find out if there is an easement on the land.  Good to know, you think, but what exactly is an easement?  According to the Meriam Webster Dictionary, and easement is "an interest in land owned by another that entitles its holder to a specific limited use or enjoyment."

Basically an easement that is already in place for a piece of land could be designed to let the power company drive across the land in order to service wires (there might be clauses that say you have to keep the trees cut back from the lines).  Another possibility would be if a neighbor with a landlocked piece of property had an easement that let him drive across your land in order to get to his.

Most likely an easement is not going to be a big deal or inconvenience you greatly, but you definitely want to look and see if there are any on the property you're thinking of purchasing, before you sign the dotted line.

Source: Country Property Dirt Cheap

More articles with information on easements:

Facts About Easements and Rights-of-Way

The Easement entry at Wikipedia.

Laws Dealing with Easements

How Much to Spend on Land When Building a Home from Scratch?

All right, you've decided to do it.  You're going to buy your own land and build a home from scratch.  One of the questions you may have is how much to spend on land.  While technically, the sky is the limit, you probably live in the real world and have a bottom line to consider.  The recommended amount is 15-20% of the appriased/market value of your finished home. 

Ok, but how are you supposed to know what the value of a home you haven't even built yet will be?  Your architect may be able to help (if you're using one), or if you're buying a kit home, you can extrapolate from the cost of the kit.  The best way to know is to talk to a realtor who is familiar with the area where you are buying land and find out what homes of comparable square footage are selling for in the neighborhood. 

Source: How to Afford Your Own Log Home

How to Find Rural Land for Sale Cheap

Whether we're planning a remote vacation home or looking to put a manufactured home some place peaceful, a lot of us dream of finding a good deal on a chunk of land where the neighbors are few and far between.  One of the things I've realized is that the Internet only gets you so far.  (I have this fantasy of buying a few acres in Eastern Washington with an old barn that I can rennovate and turn into my dream home).  You can browse sites like realtor.com but all you're going to find is stuff that's been listed on the MLS or master listing service by a realtor.  I don't pretend to be an expert on this stuff, but I know you're not going to get much of a "deal" if a realtor is involved.  At the best, you'll pay the appraised value of the land plus the broker's commission.  This isn't exactly a horrible way to go (it's how most of us buy houses anyway), but for rural land purchases, you might find the property of your dreams in other ways.  There's a lot of land out there that never gets listed on the MLS.

Ralph Turner, who wrote Country Property Dirt Cheap: How I Found My Piece of Inexpensive Rural Land, has the following suggestions for finding rural land without using a broker:

• Drive down country roads looking for abandoned or neglected farmsteads (get a plat map and/or visit the town courthouse to find out who owns it).  If no one is using the property, the owner might be willing to sell.
• Rent property in the area and let people know you're looking for land.
• Ask the bank if it has any foreclosed pieces of property for sale.
• Go to land auctions.
• Find out if surplus government land is available for sale in the area.
• Read classified advertisements for small town papers, especially those that cater to rural/farming communities.
• Place your own advertisement in the classifieds section of those papers, specifying what you're looking for.
• Go to auctions (not just land auctions but those targeting local farmers, i.e. livestock, farm machinery auctions) and ask people if they know anyone who has land for sale.
• Post "land wanted" fliers in establishments where the locals frequent.

I hope this gives you some ideas.  Good luck!

Questions to Ask When Buying Rural Land

A lot of us fantasize about buying a piece of land in the country, maybe with a cabin or an old barn on it that we can rennovate--a place to retire some day.  A few of us even get around to seriously hunting for said land.  In order to protect yourself, to make sure you get what you think you're getting, there are some questions you should ask potential sellers.  Otherwise, you could end up buying a landlocked parcel with no road to it and no way to build a road without permission from the neighbor, whose farm you'd have to mow over. 

Questions to Ask When Considering a Piece of Rural Land

• How many acres does it have?
• Where is it located? (township/section)
• What kind of land is it? (crop, pausture, timber--hilly, flat)
• Are there any buildings on it?
• Is there water? (well, rural water, pond)
• What kind of road is it on? (paved, dirt, gravel)
• Is there an access road from the country road onto your property?
• Are utilities like electricity, telephone, water, and septic hooked up?
• How much are the taxes?
• How long have you owned the land?
• Why are you selling?
• Does this specific piece of land have a deed, or are you selling off a chunk of a larger parcel?
• Are the boundaries marked with fences?
• Do you own it outright, or is there an outstanding mortgage?
• What is your asking price?
• How can I get to the property (directions)?

Source: Country Property Dirt Cheap: How I Found My Piece of Inexpensive Rural Land

Land Buying Tips

Buying land to put your future home or vacation home on?  Here are a few tips to help you get the best deal:

• The asking price for land is rarely the same as the selling price.  You can save money by realizing most sellers include a real estate commission and a cushion to negotiate in their starting price.  If you're not using a broker, you just at least try to bring the price down by the amount the buyer's agent would have earned. 
• Before you buy, have your surveyor make sure your home can be situated so your sewer/septic system will have a gravity flow and not need a pump/lilft station.  This will save you money in the long run.
• Make sure the land has adequate drainage of surface water or runoff--away from your house site.
• Choose level land, if you're planning to build your house on a crawl space or slab.  This will lessen foundation costs.
• Keep in mind, wooden land usually has a higher resale value.  It's also easier to landscape and maintain because you can leave most areas natural.

Source: How to Afford Your Own Log Home

How to Finance Buying Land

If you're going to build your own home or buy a manufactured/modular home, you're probably thinking of buying a piece of land somewhere to put it on (cities usually frown on these things being set up in a park, back alley, or playground).  But financing the purchase of land can be tricky since it's not like buying a house.  You usually have to put more money down and pay a higher interest rate.  If you are planning to start construction right away and can show your bank an estimate for the completed home's value, you may have better luck.  If you're just buying the land now with the intent to use it sometime in the future, things get tricker.  I found an article from bankrate.com that gives you the lowdown (they basically recommend borrowing home equity from your current house):

"A raw land loan will have higher down payment requirements and a higher interest rate than an improved property loan. Some lenders require a 50 percent down payment, but you should be able to find a lender that will only require a 20 percent down payment. A local lender that is familiar with the property will be more willing to work with you on the loan than a lender unfamiliar with the area."

Alternatively, they suggest...

"A home equity loan, or refinancing your current mortgage with cash out to purchase the land, may meet your needs better than a land loan. Since your current home secures the home equity loan, there's less risk to the lender. That should mean a lower interest rate."

Full article: http://www.bankrate.com/brm/news/DrDon/20010914a.asp