Buying land and acreage
Builders, perc tests, utilities, restrictions and land loans, worked out before you buy.
Everybody wants land. Few people know what goes into it.
Land is one of the most common things buyers ask me for, and one of the most misunderstood. A pretty piece of property is the easy part. What you can build on it, where, how you'll pay for it and who will build it are the parts that decide whether it works.
Selling land isn't "here's a piece of property, good luck." A buyer who closes on land and then finds out what they can't do, or what they still have to pay for, is exactly what I work to prevent. Below are the conversations I have with every land buyer, before they buy.
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Finding a builder is the biggest hurdle
This is the biggest discussion I have with land buyers. If you buy land and want a house on it, you need a builder willing to build on land you own, and that's harder to find than people expect.
Here's why. If you own the land, you're the one who gets the construction loan. That means you control the money, and if there's a disagreement, you can fire the contractor at any point and he's out money. A lot of builders stay away from that.
The other way works in reverse. The builder gets the construction loan, and to do that you usually have to quitclaim the land over to the builder. Same problem, other side: if a fight breaks out between you, the builder controls the land. Neither setup is wrong, but you should understand both before you buy, and talk it through with your lender and an attorney.
The perc test decides where your house goes
If the land isn't on city sewer, the first question is the perc test. Has the land been perked? Will it hold a septic system, and what size? A perc test checks how the soil drains, and where the land perks decides where the house can be built.
That connects to a cost a lot of buyers miss. Plenty of people want the house way back off the road. The farther back it sits, the more it costs to run electric and water to it. So we ask: are water and electric already at the road frontage? If not, you'll pay to bring them in. In my experience in Tennessee and Kentucky, that can be $20,000 or more.
Restrictions and financing
Before you buy, we'll check for restrictions on the land. Can you put a manufactured home on it? A barn? A barndominium, the barn-style home a lot of land buyers ask about? Some land comes with rules that end the plan you had in mind, and it's much better to learn that before closing.
Financing land is its own world. In my experience, most regular mortgage lenders won't finance land, so you'll usually go to a bank or to Farm Credit. For smaller parcels, roughly one to ten acres, a standard bank can often do it. And most banks will want you to start building within about two years of the land loan, so your timeline matters from day one. Talk with the lender early, because their rules shape what you can buy.
Land across the areas I serve
Land comes up all over my area, from acre lots in Wofford Estates in Clarksville, to more rural parcels across Middle Tennessee and in Kentucky counties like Christian, Todd and Logan. If the land is on the water, read waterfront homes too, and if you're building new, see new construction.
The full buying process is in how I help you buy a home. Tell me about the land you're looking for, and we'll work through these questions before you make an offer.
What my clients say
“My husband and I had one goal, to find a farmhouse with as much land as possible. Keri drove around the world and back to find us just what we wanted.”
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Frequently Asked Questions
What is a perc test?
A test of how the soil drains, which tells you whether the land will hold a septic system and what size. Where the land perks decides where the house can go.
How much does it cost to run water and electric to land?
It depends on how far the house sits from the road and whether utilities are already at the road. In my experience in Tennessee and Kentucky, it can be $20,000 or more.
Can I get a regular mortgage for land?
Usually not. Most mortgage lenders won't finance land, so buyers go to a bank or Farm Credit. Smaller parcels, roughly one to ten acres, can often be financed by a standard bank.
Why is it hard to find a builder for my own land?
Whoever holds the construction loan controls the money or the land. If you own the land, you control the loan and can fire the builder, so many builders avoid it. The alternative means deeding the land to the builder.
Land & Acreage by neighborhood
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