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What due diligence is done before purchasing land (to build a single family home in future)?

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The land lot is on the river.

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October 20 - US

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Caleb Yamanaka, "CHUTTA"
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Caleb Yamanaka, "CHUTTA"

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The big island is made up of 5 volcanoes with many valleys, gulleys, etc. and usually the best views are on steep inclines. We also happen to get a lot of rain (on the east side of the island). water flow is extremely important and if you develop our land without proper controls for run off you can drastically affect your neighbors.

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Pasadenan
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The blue tarp in the photo was placed on the neighbor's property by the realtor without the owner's permission. The realtor felt it was necessary to keep further mud from entering his house.

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October 20

Caleb Yamanaka, "CHUTTA"
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good point. water flow is important for any property.

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Pasadenan
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A nearby realtor to me bought a house about 2 miles from me in the same city, adjacent to an empty lot. The slope of the empty lot was quite substantial.

Guess where all the mud from the empty lot went when it rained heavily? You guessed it, into the guy's living room and kitchen; several feet deep worth!

And guess who's problem it was? (Hint: Not the neighbor who owned the empty lot and wasn't there).

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Caleb Yamanaka, "CHUTTA"
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Caleb Yamanaka, "CHUTTA"

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with any vacant lot, there is the question of water flow. not only from the river in high water situations, but run off into the river. How does water flow through your property? Does water flow through your property when it rains. If you are in a subdivision, are your neighbors run-off being filtered into your property?

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Pasadenan
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By the way, most builders have no experience with requirements for foundations in wet areas. Do not trust any "estimate" given to you by a housing contractor.

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Pasadenan
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Also check who "owns" the river, who maintains the river, and who is the jurisdiction of authority for the river... You may be dealing with multiple entities, and you may have no rights regarding the river even if it is "on your property".

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Pasadenan
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On a river? In addition to items already mentioned, check truck access for supply of building materials, and location of sources for building materials.

Check the soil for foundation stability. (A civil engineer or a GeoTechnical consultant). Determine if piles, or piers will be needed, and if removal and compaction will be needed, and other footing options, pricing each.

Check for "environmental protection" regulations. Are there protected birds or rodants living on the property? Can they be relocated? Is there an expense for relocation? What about protected trees or bushes? Is there room to build around them?

Is the river running or stagnant? Will there be insect issues, such as mosquitoes?

How far away are the nearest power lines? How much will it cost to have them broght to the property line.

Is piped in water available? Would it need to cross the river? What is cost and drinkability?

Don't forget to check maximum floor area ratio and maximum lot coverage when you check the zoning.

Is it possible to "move on" an existing house? If so, is there clearance to get it through the roads and onto the lot? How much would it have to be cut up? How much tree triming and utility relocation would be required?

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NTETS, "Caveat Emptor"
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1) get a survey
2) locate all utility lines on the property
3) check local regs and codes
4) there is a test for septic systems that measures the location of your local water table, get that(perc?)
5) find out if the property is on a flood plain(practically guaranteed) and you need flood ins
6) price flood ins
7) choose a budget range and a floorplan
8) compare future value to local comps
9)obtain a letter of pre-approval for a construction loan
...

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Ofe Polack, "Ofe Polack"
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Ofe Polack, "Ofe Polack"

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Visit the planning department of the town in which the land is located to ascertain what are the off-sets from the water source, front and sides. Ask the seller for the results of any engineering they may have done, such as perk test, survey, preliminary septic test (if needed) et. If they have not done all these work, then put the offer subject to the lot being a buildable lot.
It would really help you if you could use a Buyer Agent on this transaction.

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October 20

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What due diligence is done before purchasing land (to build a single family home in future)?

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Related Questions

Question Buying my first home: Do I need to hire a lawyer to be present at the time of closing?

Question If my offer is $50 higher and I have a cash sale, legally does my offer stand?

Question Can I assume someone elses mortgage?

Question I'm a first time home-buyer and I need to know a property value.

Question If this house becomes availible for sale I would like to bid on it. This was my 1sthome.

Related Articles about Buying Process

Guide Real Estate Buyer's Closing Costs

Guide List of Closing Costs and Fees

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