Last Updated on Saturday, 01 November 2008 12:51 Written by Carl Johnson
Purchasing land in New Hampshire involves knowing New Hampshire town ordinances and zoning regulations. This article discusses how to go about searching for land in New Hampshire.The Search for Land
Note: this article is a work in progress so please bear with me as I complete it
Land has always been a factor in a determining a person's status in our society. We can get an insight into this by looking back at the beginning of our country and the drafting of the Declaration of Independence with the passage we all know:
"We hold these truths to be self-evident, that all men are created equal, that they are endowed by their Creator with certain unalienable Rights, that among these are Life, Liberty and the Pursuit of Happiness."
Few people know that the passage was nearly written "....life, liberty, and the pursuit of property" which was borrowed by Thomas Jefferson in writing the Declaration from the 17th-century English philosopher John Locke who had a huge influence on our society in the 18th century. Our forefathers, chief among them, Benjamin Franklin, decided to make the subtle change from "Property" to "Happiness" to make the statement more inclusive. But it is clear that the concept of owning real property was synonymous with Happiness and an important goal that people had. In that day, property owners had rights and privileges that non owners did not. Property owners secured for themselves the possibility to make a living from the land and to grow wealth.
What was true at the beginning of our nation is still true today. Owning land provides the opportunity to attain wealth and prosperity. Whether your goal is to buy land on which to build your dream home, an income or commercial property or to simply hold on to it, enjoy it and sell it at a later time at a profit, the key to all of these things is to first own the rights to the land. There is only so much land out there. No more of it is being made and the fortunes and opportunity for many depend upon getting some of it. Think of the home builder. Without a parcel of land he cannot build, and if he cannot build he cannot earn a living. So from this one case we see that the key to happiness and wealth is the acquisition of property.
Educating yourself about land and the rules and regulations that govern how it may be developed is an important first step. Educating yourself now will prepare you for your search for that perfect lot. The best parcels of land, offered at a fair price, will sell quickly and you may not have time to "get educated" when you find such an opportunity. You must be prepared to assess the land to move quickly in making an offer.
One note of caution, "do your own homework" when investigating a piece of land. Asking your "friend" about the value of a piece of land or what can and cannot be done with it is a sure way to trouble. All too often, a rare exception or special exception granted by the town is perceived to be the rule and it is assumed that because one person was able to build a certain way that everyone can. Don't take someone's word for it, do your own homework. Also, beware of the common misconception that a parcel that has been on the market a long time is a "bad investment" or is not worth the asking price. Don't let others set the value of land in this way. Do your own homework and find out what it is worth to you.
So with the above in mind, let's look at the things that must be considered when buying land.
- Location
- Use
- Development costs
- Acquisition costs
In order for a piece of land to be suitable for building a home there are three things that the land must accommodate:
- The structure and any out building you plan to build on the land
- A source of water
- A sewage system
As a bare minimum, the land must be large enough to fit the house, a well, if public water is not available, and a septic system. These things must fit within the property while complying with local ordinances and state environmental rules. These will be discussed in more detail later. In your search for land you will undoubtedly come across many opportunities, but not all of them are worthy of purchase. Contrary to the statement about men in the Declaration of Independence, all land is not created equal when it comes to building on it.
Location
Where you search for and purchase property is greatly influenced by:
- Where you need to live or where others need to live
- What you can afford to buy
- How much land you wish to own
A property's proximity to areas of employment, retail resources or major commuter routes, will heavily influence the price of the land. People tend to want to live close to large towns and cities because that is where they work or shop. The demand tends to drive prices up, and in the case of cities, tends to mean smaller lots of land. The other big influence on land prices is the proximity to lakes, mountains or vacation destinations. Everyone's dream is to have that beautiful custom home by the side of a pristine lake or overlooking the mountains. There are not many of these places in the world and so the land near them fetch top dollar.
Venture a little further out and land can be got for considerably less. The tradeoff is the time it takes to drive to where you want to go.
If you are looking to invest in land and hold on to it for several years then venturing out of areas that are currently popular may be the way to go.
Land Use
Towns control how they grow and develop over time. In order to control growth and development towns pass zoning ordinances that define how the different areas of the town can be developed.
Zoning Ordinances- read the local zoning ordinances for the town in which you are interested in living. Become familiar with what is required of a piece of land for it to be a buildable lot. You should read ordinances for at least one town in which you are interested before you begin your search. This is so that you are familiar with the typical issues and requirements for development and this will help you to assess the land and ask the right questions. Every town makes these ordinances available to the public. Just call or visit the town hall and ask for a copy of their local zoning ordinances. They may charge a small fee to provide you with a copy. Be sure to ask if they make the publication available on-line. Many towns make the publication available on-line and it can be viewed or downloaded at no cost. It is very informative to read the entire zoning ordinance but you are particularly interested in the requirements for a residential lot.
The things you need to know about are:
1. Zones- Towns are usually divided up into zones and each zone will have its own requirements for building. Typical zones are:
- Commercial
- Residential
- Industrial
- Rural
- Farm
Residential zones may be sub classified. So there may be some residential zones that have larger lot requirements than others. The first thing you should ask when looking at a parcel of land is: "what zone is it in?" Do not assume that because the lot next door is in a certain zone, the piece you are considering purchasing is in the same zone. For instance, you may be looking at a lot and are told the house next door is in Residential Zone 1. Because you have the zoning ordinance you know the Residential Zone 1 lots have a minimum lot size of .5 acres. So you think, great, the lot you are looking at is .75 acres and it is being offered at a really great price. It would be sad to find out later that the .75 acre lot you just got a "great deal" on is in Residential Zone 2 which requires 2 acres, minimum, to build a house. If you buy it, you may have no remedy.
2. The minimum land area required to build a home- usually given in acres or sometimes square feet. Remember there are 43,560 square feet in an acre.
3. The minimum amount of feet of land that must abut the road- this is called road frontage.
4. Minimum setbacks- towns almost always have limits on how close to the lot line you can place a structure. It is not generally allowed to build a permanent structure right on a lot line.
5. Slope and wetlands- Sometimes there are limits on how much of a lot can have steep slopes and wetlands. If a piece of land has these features on it you may need to have a larger lot than the minimum size given by the ordinance.
6. Other limitations- Some municipalities have rules in the zoning ordinances that set additional requirements for a buildable lot. One common rule is the "inscribed rectangle" rule. This rule requires that a lot be of such a size and shape that a rectangle of a specified dimension can be drawn completely within the lot lines of the lot. The intent of this rule is to prevent very oddly shaped lots from being formed from a subdivision.
Here is an example- you are looking in a town for property and you know and you find a promising lot located in Residential Zone 1. From reviewing the zoning ordinance you know the following are the requirements for a lot.
- 2 acre minimum lot size
- 200 ft of road frontage
- 35' set backs from the lot lines
The lot you are looking at is 2.5 acres and has 210 feet of frontage. It looks very promising! You love the location, you love the land and everything looks great. The last issue is that the town requires that a rectangle 200ft by 200ft can be inscribed within the lot boundaries. See figure 1. If so this lot is a good candidate for purchase.
Tip: Some lots may be "grandfathered". A lot that has been in existence for a long period of time may be considered buildable by the town even though it does not meet the current zoning requirements. So if a lot does not seem to meet the requirements ask the town if it is "buildable".
Development Costs
Land Acquisition
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