Tim Trainum Properties Reports Residential Land Purchases Spike 36% in Northern Virginia as it Helps Buyers and Sellers Navigate the Market; Understanding Risk is Crucial

Tim Trainum Properties Reports Residential Land Purchases Spike 36% in Northern Virginia as it Helps Buyers and Sellers Navigate the Market; Understanding Risk is Crucial
Fairfax, VA, June 09, 2022 --(PR.com)-- The housing market has been on a tear the last few years. Too many buyers with too few homes for sale. This has caused many frustrated buyers to push back into the home development process and consider purchasing land where there is less competition and more control. In fact, land purchases have spiked 36% in Northern Virginia the last two years with 970 transactions compared to 713 the previous two years (Bright MLS). While buyers avoid competition in the resale market, doing so comes with many issues not normally confronting a homebuyer when purchasing an already completed home.

Buying unimproved land means just that. There are no improvements. There is no home, no permits, and no connection to utilities. It may be unclear if the lot is even buildable or zoned for your intended use. A stream or small creek running through the property may be considered a resource protection area by the county demanding a special site plan and set-back. Tree removal means a tree plan approved by the county before removing anything. So many things must be considered before buying.

How can a buyer navigate this process? It involves an examination that is vastly different than the typical three-hour home inspection when buying a completed home. Land acquisition work is conducted within what’s referred to as a Feasibility Study, usually taking 45 to 90 days. The Feasibility Study is a comprehensive package of due diligence performed by the buyer. It helps a buyer ultimately understand what will be required to develop the site and build the home. The study period also provides time for the buyer to estimate development, financing, and construction costs.

A currently prospecting land buyer in Northern Virginia, Flavio Garcia, commented, “The land buying process is not even close to a home purchase. It’s a different segment of real estate with different risks and different considerations that requires different counsel. Tim Trainum Properties helped us considerably.” Working with a Realtor and engineer/builder experienced in land purchases requires second and third-level thinking about not only the here and now, but also anticipated future development that can positively or negatively impact the land.

Many buyers are surprised at the totality of what’s required to purchase land and build a home. Tim Trainum commented, “The greatest buyer misconception is frequently the cost to get to a completed home. The development costs between the land acquisition and laying the first brick is often underestimated.” In general, this can be an additional $50,000 to $350,000, depending on the lot. Buyers are also usually surprised by the costs to construct the home, which is much more than what a builder may spend inside the economies of scale building multiple homes in a subdivision. Everything is more expensive when you do it yourself.

The process of buying land and building your custom dream home can be extremely rewarding, but it’s not without a tremendous amount of work and cost. Ingredients include heavy helpings of perseverance, problem-solving with constant attention to the buyer’s vision.

About Tim Trainum Properties
Tim Trainum is an established real estate agent licensed in Virginia. He works with sellers and buyers of residential real estate across the Northern Virginia region. Tim is a top producing agent at Pearson Smith Realty as well as within the Northern Virginia Association of Realtors where he is recognized as a multi-year Top Producers Club - Platinum Member. Tim's over 25 years' experience in real estate includes working in the development, construction and operation of real estate infrastructure projects for a Rockefeller & Co. investment group closing over $500 million in transactions.

Tim resides in Fairfax, VA.
Tim Trainum Properties
Tim Trainum