From securing funds for the project to executing it, you will be involved in a lot of paper works, consultations, hiring, and supervision. These processes are so delicate that an omission of a step can cost you your project.
As you look forward to becoming a landowner and, subsequently, a house owner, you have to execute your plans strategically to avoid problems of any sort in the process.
You might be taking a risk in carrying out such a project if you have little to no knowledge of the laws guiding property ownership in your country.
Furthermore, hiring the wrong hands for your project might result in wasted resources and cause conflict between you and the hired hands. You definitely don’t want to encounter these troubles.
There are easy steps to follow if you wish to buy land and build on it seamlessly.
The first step to achieving a target is by making a plan. Prepare a list of all you need before committing a penny to your project; building materials cost, suitable alternatives to unavailable materials, and other factors that may influence your project.
You will spend more time and resources correcting avoidable mistakes if you fail to plan properly. Below are a few tips to ensure proper planning.
Buying pieces of land and building houses are capital-intensive projects. Therefore, you need to run a check on your financial capability to determine how much you can set aside for your project.
Whether you’re obtaining a loan or you have the cash in your account, let a budget guide all your proposed spending. The budget will, in turn, guide your contractor and other hired professionals in carrying out their duties.
Disagreement on money is a great hindrance to the progress of building projects.
Planning involves you securing funding for your project. You wouldn't want to begin your project by owing the people you’ve hired. You can secure funding by applying for loans, using your savings, or borrowing from family and friends.
Conduct research on the best place to buy your land. The research will prevent you from getting trapped in unsuitable laws guiding property owners in a particular locality. You also need to research the land available for sale in the neighborhood you desire and the genuineness of the owner.
Finally, consider contacting a real estate company to purchase your land.
A way of getting the correct information and proper guidance is by inquiring from your family members and friends, especially those that have executed similar projects in the past.
They will tell you their experiences of the hassles they faced when buying their land and building their houses, and also advise you on how to avoid such challenges. Keep their experiences in mind as you go about your project.
Hire a real estate attorney to give you legal advice before you begin signing documents or agreeing to any terms and conditions. This will help you foresee any impending legal trouble and avoid it in good time.
There are various ways of searching for land for sale. You can see such adverts on signposts in your neighborhood or your local newspapers and magazines. The radio, television, and social media are also channels to get such information.
Most of these adverts are by landowners who wish to sell their land themselves. You may end up running into some problems if you're inexperienced or not properly guided in dealing directly with these landowners.
An easier way of purchasing land is through a real estate company. Real estate companies are registered companies that sell, lease, and manage land, properties, and houses. They sell land free from ownership tussles because they are registered with the government.
Buying land from a real estate company eliminates the fear of anyone encroaching into your piece of land if you delay building on it. Even the government will find it difficult to acquire it back because the land must have been approved for residential purposes by its ministry of housing.
Below are a few tips to guide you when buying land from a real estate company.
Not all real estate companies posing as licensed companies are truly licensed. Ask for their registration numbers, websites, offices, and even bank account name to investigate the genuineness of any real estate company you're contacting. It could be red a flag if the information provided is inconsistent.
Although technology makes information readily and easily available, you can't get all the information about the land you want to buy without visiting it. You will get to observe its features and neighborhood when you visit it.
This information can be misinterpreted by the real estate company you're patronizing. Also, you get to avoid being defrauded with an inexistent land by visiting the site.
Thoroughly investigate the information provided about the land by the real estate company before signing the dotted lines. Then, hire a land surveyor to verify the land’s size and boundaries. In addition, conduct a soil test to ensure the land is suitable for the kind of house you wish to erect on it.
As you draw closer to sealing the land purchase deal, ensure your real estate attorney explains all the terms and conditions included in the deal, especially if you're paying in installments. Some real estate companies have a lot of clauses attached to their deals that can frustrate their buyers in the long run. Your attorney should be available to spot and explain these clauses to you.
At this stage, you can put your pen on the paper. Remember to read and understand the documents before signing on them. Also, keep a copy of these documents for yourself.
Hiring a building contractor to erect your house will lift the burden of overseeing the building construction yourself.
The contractor will manage all operations on the site, get permits and approvals from the local authorities on your behalf, and subcontract specific jobs like plumbing, electrical installations, and roofing to other contractors and craftsmen.
The use of a building contractor will save you the hassles of dealing directly with so many workers at a time.
You won't have to spend so much time supervising your building project if you're careful enough to hire an experienced contractor. And you won’t have to worry about your contractor building something different from what you want.
Before you hand over your building project to your contractor, both of you should sign a binding contract. Your real estate attorney can help you prepare a draft. The contract should explicitly state the budget, mode of payment, and duration of the job.
Your contractor must share the same vision you have for your building in terms of financial expenses. Such an agreement will prevent your contractor from overshooting the planned expenses, which might later result in a conflict. The document should also contain a clause that excludes you from such unplanned expenses.
Since the prices of building materials are prone to change, the contract should make provisions for such unpredictable situations.
You should agree on the mode of payments with the contractor, whether in batches as the job progresses or split into two – an initial and final payment. Also, the mode of payment should indicate if the cost of building materials is included or if they are only for the services of your contractor and other subcontractors.
Making this agreement will prevent the slow pace of the work due to payment issues.
One way to prevent your building project from stretching longer than it should be is by agreeing with your contractor on the duration of the job.
Some contractors handle multiple projects at a time, causing them to underperform in their duties. By agreeing on a time frame for the project, you won't have to worry about your project delaying.