If your looking to buy a lot in a sub division in the Mountains of North Carolina, Georgia, Tennessee, or Virginia there are several factors to consider. Yes there are over 1 million lots on the market and some lots can be bought for under $10k; but before buying one you better look to see what your really buying. In most cases paying more can actually save you money now, in the future, and when it comes time to build.
When first buying land consider who is maintaining the sub division. Is it a bank? a developer? home owners association? or in alot of cases ANYONE? ...... Ask questions like ..... How much are HOA DUES? What do the Dues Cover? How often are they mowing the roads? If the roads are gravel how often will the roads be scrapped and graveled? Is there a water system? Who maintains and test the water system? Is there a clubhouse and common area? If so.... Who pays power? Maintains Pool? Cleans?...... There are a lot more questions to ask and you need to keep a list with you to make sure you don't forget anything.
Next consider how many lots are in the sub division. Are there previous sales and how many. If the sub division does not sell any other lots; can the sub division maintain itself with the sells already in place. How many lots have foreclosed in this sub division and does the bank still own them? Are you looking at a lot that is a foreclosure? If so this might tell you about the rest of the sub division.
Finally consider why are you buying this lot. Investment, retirement, vacation home, your new residence, or because you have always wanted land in the mountains? How much are the taxes going to be? (In most cases especially in WNC taxes are very cheap for land) What are the HOA dues going to cost each year or month and what is covered? If the sub division stops maintaining itself can you still use your lot? (Paved access, gate codes, clubhouse maintenance). What will be the future cost to build? Will you have to drill a well? Pay a tap fee? Put in a septic? What will be the cost to grade the lot? How much will the future foundation cost? (Foundation cost can range from $10,000 to $200,000+ depending on the slope of the lot)
Right now is great time to buy a lot in the mountains. Prices are literally pennies on the dollar and you can get so much more for your money. But take some time, do your due diligence, and pick out a lot that will increase in value. DO NOT make a quick decision and regret it later. ALWAYS contact a local REALTOR who is working for you and one you feel comfortable with.
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