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How to buy land in Sequim

  By Dave Tall, an Associate Broker for Strait Realty in Sequim.

Most people buy Sequim land for one or on of two reasons. 1) to build a home. Or 2) to use as a potential investment. Land is a solid and resilient investment – it rarely goes down in value. Sequim land value has increased in value several times in recent years and unlike most investments these days, it’s real. You can see it, touch it, hear it and smell it. Some land can be utilized for agriculture or recreational use before being prepared as a home site. Whether a small lot inside a subdivision within the urban growth areas or large land parcels off the grid, people from all over the country are purchasing land that they can build a retirement home on in the future or if need be resell if their plans change. Much of the acreage in the outlying areas can be developed over the course of years or decades. For example, after the initial purchase the parcel can be partially cleared for a campsite or picnic area. Later it can be improved with a septic system and well. Perhaps an RV garage or trailer home could be added next. Eventually most lots highest and best use will be as the building site for a permanent residence, a home specifically built with the land owners wants and desires in mind, this is the dream home… This is the Great American Dream.

 OK, so you’ve made the decision to buy land. Before shopping however some thought needs to go into the overall process of knowing what to look for. An average of 25% (choosing a manufactured home can increase this percentage) of a buyer’s total housing budget is spent on the raw (unimproved) land. So if you plan to spend $500,000 for your home you should look for lots priced at around $125,000, this is a realistic starting point for many people at this time in the market. Now a day trip to Sequim would be useful. Find the land listings within your price range located in a wide selection of areas. Look at localities and neighborhoods as much as lots themselves at this initial stage. If what’s available at this price doesn’t fit your idea of your dream… than an existing home on the residential resale market may work better for you than land.

 Now that you’ve decided that there are desirable properties in your price range and have a feel for which neighborhoods you might want to become part of eventually, its time to shop for lots. Because of the North Olympic Peninsula’s geographical characteristics many lots fall into one of two basic categories, 1) predominantly on the north side of the highway in the Dungeness Valley, usually being mostly level and cleared lots with southern exposure and a mountain view. Or 2) often located on the south side of highway 101 in the foothills of the Olympic Mountains. These are typically sloped and wooded lots with northern exposure and some have water views. The more you understand your own preferences and inform your Realtor® of them, the more successful your land search becomes. The following are basic elements of land listings that you should not only be aware of, but should have specific preferences about before you buy or even seriously start to shop:   

1.         Location

2.         Neighborhood

3.         Exposure

4.         Topography

5.         Vegetation

6.         Lot size & shape

7.         View

8.         Availability and cost of utilities

9.         Convents, conditions & restrictions

10.   Environmental and governmental regulations

 There are many considerations and pros and cons involved with each of the elements that will affect; the cost of developing, convenience to community services, road access, privacy and rules limiting what you and your neighbors can do on your own properties, etc., etc., etc. Ultimately the responsibility for choosing suitable land belongs to the purchaser. Vacant land purchase and sale agreements obligate buyers to pursue “due diligence” and provides them a feasibility contingency. A feasibility contingency has a duration know as the feasibility period, during this time a buyer carries out his due diligence or feasibility study.  Feasibility contingencies allow buyers to cancel the purchase and sale agreement if they discover the land is not suitable.

 Buyers will do well to use their feasibility period effectively. Depending on the land and especially availability of utilities and proximity to critical areas, feasibility studies can be simple or problematic. Asking questions of representatives from governmental agencies and utilities with jurisdiction of the area the land is located is critical in understanding costs and restrictions with developing. Sellers typically provide buyers with preliminary title reports during this period; title reports are recorded documents such as surveys, deeds, easements etc. Title examiners, surveyors and attorneys may be needed to answer questions relating to these documents. Building contractors will to meet with buyers on the lots to advise on the practicality of building a home. Unimproved or “raw” land may require a septic designer to perform a soils analysis (perk test), a logger to cruise (appraise) for timber value or a biologist to establish buffers from wetlands. Determining where (under) ground water is has been a time-honored talent; today buyers employ methods ranging from water witchers to electro seismic technology. Civil engineers can be employed to do geo-technical studies, drainage plans and many other reports and surveys. Although real estate agents are not qualified to advise buyers on these subjects an experienced agent may be able to alert a buyer to a potential problem and recommend professional advise before the expiration of the feasibility.   

 Choosing an experienced Realtor® with an understanding of land issues is the best thing buyers can do for themselves and having a specialized land Broker, unlike some of the professionals mentioned above doesn’t cost a dime extra. I recommend interviewing several agents if necessary to see how firm a grasp of the ten land concerns listed above they have before choosing one.

 Throughout history, ownership of land has been the standard for prosperity and achievement for both man and nations and much blood, sweat and tears have been shed for its acquisition. Now land is available to most of us at the reasonable cost of about a year’s salary more or less. Sequim area land has major advantages that no other area has. Its unique climate, mountain to ocean location and stunning pastoral setting makes it one of the premier retirement communities in the country. The housing needs for the nations ageing population bodes well for continued demand and sustained rising resale values of Sequim land.