Many people assume they must wait until they are ready to build—or until they can pay cash—before buying land. In my experience, that is often not the case.
Over the years, I have helped many buyers purchase a future homesite several years before they planned to build. Buying the land first allowed them to secure the property they wanted, then take their time with house plans, construction costs, water, septic and the timing of their future home.
Owner financing can make buying now possible
Owner financing may allow qualified buyers to purchase their homesite with a simpler process than traditional bank financing.
There is still qualification and written documentation, but the process may be more straightforward than applying for a conventional land loan. A reasonable down payment and manageable monthly payment can allow a buyer to secure the land now rather than waiting until every part of the future home is ready.
Buy the land first. Plan the home later.
Owning the homesite gives you time to choose a house plan, investigate building costs, talk with contractors and decide when construction makes sense. You are not required to solve every future decision on the day you purchase the land.
The right property may not be available when you're ready to build. Sometimes the smartest decision is to secure your homesite first.
Owner financing is not for everyone
Payments still need to fit comfortably within the buyer's budget. Final terms, qualification, interest, amortization, balloon date, escrow and closing documents must all be agreed to in writing. The goal is not to make a risky purchase easier—it is to make a sound purchase possible for the right buyer.
A current Northern California example
ReddingLand.com currently offers a 3.62-acre future homesite near Redding with mostly level to gently rolling usable land, paved access, a private gate and power available near the property. Owner-financing terms are available to a qualified buyer.
Ken's Tip
Do not compare land only by total acreage. Usable terrain, legal and physical access, utilities, restrictions and future building potential often matter more than the number of acres shown in the listing.
About the author: Ken Grisham is a California Real Estate Broker and licensed contractor who has bought, sold, financed and developed Northern California property for many years.