We have seen land prices fall somewhat over the last few years, and we can say with some certainty, that the prices are about as low as they are going to get. With the bottom of the market here, many people are thinking about purchasing a piece of land to build their new home. This is a great idea, given the economy, permitting environment, and favorable lending rates. However, there are some things you definitely want to think about before purchasing a piece of raw land.
- Get a Building Permit before you close on the property
- Understand all of the zoning, and other regulatory issues that apply to a certain property. (Historic, septic, conservation etc.)
- Make sure you can build what you want to build, where you want to build it on the lot. A good design/build contractor can help with this
- Find out about the cost of construction prior to committing to the purchase. What you think the house will cost you vs. what it will actually cost you may not be the same
- Find a team of professionals to help you. A good realtor, working with a competent design/build contractor like REEF can point you in the right direction, and assemble the other experts you will need.
Here is some additional information from about.com
http://homebuying.about.com/od/secondhomes/qt/102507_buyland.htm