When you're in the market for a new home but can't seem to find what you're looking for, buying land and building a home on it can be the ideal solution. Before making an offer on a piece of property, keep these do's and don'ts in mind to avoid headaches and unpleasant surprises on the road to your dream home.

Do: 

Work with a real estate agent. 

Working with a real estate agent who is experienced in land sales ensures that you have all the vital information about the property and that important details are taken care of. An agent will be familiar with rules regarding zoning, setbacks, easements, rights-of-way, and other elements that influence what you can build on the property and help you make an informed decision. This way, you avoid purchasing a parcel that you can't use as intended.

Invest in tests. 

Any property should be surveyed, including gathering soil and geology reports on file. If not, these tests and measurements need to be done before making an offer. This ensures you won't be encumbered by contaminated soil, flood risk, or geological features that will keep you from building. A current survey shows the exact boundaries of the lot, so you know where they are.

Don't: 

Underestimate expenses. 

It's crucial to account for the costs of road access and utilities to the new property. If you're purchasing a parcel in town, or one that is part of an established development, services are likely to already be available. In a more remote area, infrastructure will need to be built, which could increase costs. You'll also be responsible for taxes on the land even before building a home, so be sure to budget for those payments. 

Exceed the neighborhood value.

Getting a loan to build a new home can be challenging. In fact, many banks will not lend money for land at all, meaning you'll have to pay cash or find alternative financing to buy the property. Once you own the land, pay close attention to the value of nearby properties when designing the new home. The structure's finished value should be comparable to the neighborhood. If the final value of the home and land is much higher than surrounding properties, you are likely to be turned down for a loan. 

Get expert help buying a new home or piece of land from the experts at EXIT Realty Nexus in Coon Rapids, MN. This team of more than 60 real estate agents has the expertise you need to find the perfect piece of property in the area. They've been serving local buyers and sellers since 2004, and have the experience to ensure a smooth transaction. Visit their website to learn more about their services or call (763) 548-1400 to speak with an agent about available listings.