Buying a Building Lot in South Jersey

Location

Building lots range from uncleared rural land to inner city property where a building has been demolished.

Lots on which a building once stood (or is still waiting for demolition) are called "infill" lots. Infill lots are often the only available land in developed urban locations. They tend to require the least amount of grading and servicing because they have already served as developed land. If the lot is being sold with an existing building, consider the cost of demolition when you negotiate the price.

Undeveloped land can be found on the edges of cities and towns, and in rural areas. Here you will find a variety of lot sizes, terrain, and access to services. If the land is being sold uncleared and unserviced, consider the costs of these. Costs can vary widely, depending on the lot size, the need for clearing and removal, and local rates for service installation and hookup.

Grade

"Grade" is the way in which land’s surface slopes and lies. Grade also describes the process of leveling and improving the slope. Most lots need some grading to level irregularities and create good water runoff away from the building site.

If the lot is in its natural state and has not been filled or altered, you can easily see its natural grade. Look for the way in which water flows across the lot. Is it low in relation to neighboring land? If so, it will have drainage problems as water runoff flows onto the lot. Ideally, the site on which the house will be built should be higher than - or at least level with - the surrounding land. If it is not, it might need to be filled in - a potentially expensive job.

Tip: Assuming the building site itself has good run-off and drainage, consider the potential of an uneven lot. They are often priced lower than a level lot of the same size and location. Yet, once developed, they can have more value because of their character and more diverse landscaping potential. They offer opportunities for homes with walk-out basements, multi-level decks, and other interesting and valuable features. Landscaping is also more interesting on an uneven lot. You can create terraces, multi-level patios, and ravine views.

Services

Always find out what services are included with the lot. Rural properties will require a well (or surface water supply) and septic tank or bed. City or town lots must be connected to municipal services. These will include water and sewer and - where available - natural gas.

A serviced lot will already have these hookups. An unserviced lot will involve extra expense to obtain them. If the lot is not serviced, find out the local cost to get it serviced. You can call the local municipal offices (regarding fees, etc.) and - in some cases - local excavation and installation contractors. Be sure to budget for these expenses.

Newly cleared lots on the edge of town might not be serviced. Even lots in established neighborhoods might need hookups if the existing ones are obsolete or were damaged during demolition of existing buildings. Be aware of infill lots that are offered as serviced but in fact, might require replacement or repair of the existing hookups. When making an offer to buy, get a written warranty on the existence and condition of services. Ask the vendor to provide copies of municipal and other documents to verify the installed services comply to current codes.

Zoning

When buying a building lot, be sure that its zoning will allow you to build the kind of house you want. If you plan to build a two-story home and zoning restricts heights to a single story, you will have to change your plans or apply to a Committee of Adjustment (a procedure to obtain a minor exception to the zoning requirements). All things being equal, it is preferable to buy a lot with zoning that already accommodates your planned home. There is always a risk that you will not get approval for even very minor exceptions to the existing zoning.

Also, check with the municipal zoning office to find out the zoning of surrounding lands. Don’t rely on the advice of the seller or real estate agent (simply because they might not know). More than one buyer has built their dream home only to have a factory appear nearby.

Survey

The seller (or his agent) should be able to provide a copy of the survey. If the land is a long established property - such as an infill lot - the survey might be quite old. Existing fences are only a guide to where the boundaries lie. Only a recent survey will tell you, with certainty, what you are buying. Although the seller should provide this, some might try to make it the buyer’s responsibility. If you agree to accept the old survey, be aware that it might not accurately reflect what you see when you view the lot.

If the lot was recently subdivided from a larger piece of land, it is very important that the seller provide an up to date survey. When you view the lot, you should be able to see surveyor’s stakes to mark the boundaries.

Negotiating price

If the lot you want to buy is one of many, similar lots in a subdivided area, it will be relatively difficult to negotiate much below the established price range. To get a lower price, you can try to use the finer points of the lot’s location within the development (corner, end of street, etc.), size, grade, and so on. Another strategy is to wait until the vendor is down to the last few lots. Often, he or she will be more open to negotiation in order to sell the remaining lots.

If the lot is more unique - such as an infill lot or single rural property - there will be more opportunity to negotiate. Some of the points on which you can lower the price include:

• the need to clear vegetation and rocks or remove existing buildings
• the need to fill and grade
• other irregularities that make access or building more difficult or expensive
• the existence and condition of services
• the seller's eagerness to sell
• whether it is a buyer’s or seller’s market