Buying a home before studying the lot where it is located is never
advisable. Many home buyers seem to believe that the lot is not important if
the house is good enough to grab attention. Agreed, the lot is merely a piece
of land, but in real estate it matters. Here is why:
The value of your lot is often determined by the size of the lots
adjacent to it. So if you are going to
buy a lot which is much smaller or bigger than other lots in the neighborhood,
you need to realize that its size will have a major impact on its original and
resale value. So you might think that bigger lots are more valuable than
smaller lots, but this is not always the case. Of course, it is safe to assume
that a lot which is larger than adjacent lots will be more valuable.
However, if that extra acreage consists of unusable terrain, the lot
could be worth much less than neighboring lots. Interestingly, a smaller lot
could be worth more for several reasons including its location, landscaping,
views and the size and value of the house built on it. When it comes to corner
lots and lots located on a dead end, there are several other factors that could
affect the value.
The Size
The relation between lot size and property value is not exactly clear.
In fact it tends to be governed by area and neighborhood, rather than anything
else. In a city, a lot that measures a quarter acre should be considered as a
large lot. When it comes to the suburbs, an acre tends to be the norm for
relatively expensive homes.
Large pieces of land that cannot be divided into sub plots rarely
increase the price of the house. Consider this example. A lot comes with
additional seven or eight acres of land. But if this extra piece of land is
undevelopable because it is a rocky land or swamp, it will not enhance the
price of the property. It might even turn off some potential buyers because few
people are interested in paying property tax on a piece of land that they can't
use in any way. In fact, some owners of such unusable lands have dedicated it
to the town where they live. By giving away land, they not only reap tax
benefits, but also reduce their property taxes.
The Position
If you run a business, you will definitely want to purchase a corner
lot. These are considered the most desirable locations for shops and
businesses. However, when it comes to residential property, corner lots are not
exactly popular. Since these lots are more exposed, they might require high
fencing or trees for privacy. Families with very young children may prefer
Cul-de-sacs or dead ends.
Effect on Lifestyle
Now that you have factored in the price of lots in the community, you
need to consider the impact the lot will have on your lifestyle. You need to
ask yourself a few questions:
Do you think your family will need lots of outdoor space? If your
family prefers to spend a lot of time outdoors, you will probably need a larger
lot. You also need to remember that the size of the lot may affect the type of
landscaping you can have. Your chosen lot should ideally be close to community
amenities. You will probably also want to know how far the lot is from the
community entrance.
You can view the lot map before buying property in a community.
However, if it is possible, drive to the neighborhood and see the lots and
homes in person. It will help you make a more informed purchasing decision.
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