- $1,595,000
St. Louis Road, Middleburg, VA 20117
Hi there! My name is Jonathan Kennedy. I am an Accredited Land Consultant and the Principal Broker of LandReady Real Estate based in Leesburg, Virginia.
I created this website to share the knowledge I have gained from 10+ years of buying, selling, and investing in land and representing buyers and sellers in more than $40M of land sales in Loudoun County and surrounding areas. Thank you for visiting!
I share this information freely, but if you are interested in buying land for sale in Loudoun County VA, I would love the opportunity to earn your business.
On this website, you will find in-depth articles on the blog and additional long-form information products available for free download. One of my most popular downloads is this guide I created to help prospective buyers weigh the pros and cons of buying land and building a new construction home versus buying an existing home.
As you consider land for sale in Loudoun County VA, you should be aware that the process for buying land is very different from the process for buying a house.
Be sure to hire an agent who has good experience with land sales and knows how to protect your interests!
Here are some key differences between buying land and buying a house:
When you make an offer on land for sale in Loudoun County VA, your offer should be submitted on the Northern Virginia Association of REALTORS approved Sales Contract for Unimproved Land. This is a different form than is used for submitting offers on houses.
The agent who represents you should have experience writing and submitting offers using the Sales Contract for Unimproved Land, as it contains important clauses, such as the Study Period Contingency, that apply specifically to the sale of land.
Whereas a typical home sale involves an inspection contingency, the land sale equivalent is the study period contingency. Notably, the study period contingency covers a much broader scope of due diligence activities than a home inspection contingency.
When you buy Loudoun County land for sale, the purpose of the study period is for you to determine — through whatever studies and tests you deem necessary — whether the land is suitable for your intended use. Often, this involves soil evaluations, surveys, wetland delineations, geotechnical studies, and related investigations.
In contrast to home inspection contingencies, which are often completed within 7 days from the acceptance of the sales contract, study period contingencies can run considerably longer. For a straightforward Loudoun County land purchase for the purpose of constructing a single family home, the study period may be as short as 14 to 30 days. For more complicated purchases involving commercial developments or land subdivisions, the study period can easily exceed 90 days.
Your Loudoun County land agent should be able to advise you which due diligence studies to complete before you make the final decision to close on your land purchase and how much time to negotiate for your study period.
During the course of a typical home purchase, you might hire a home inspector, a pest inspector and, if necessary, a structural engineer, a plumbing contractor, and an HVAC contractor. In contrast, buying Loudoun County land for sale requires an entirely different set of consultants, including civil engineers, environmental consultants, soils scientists, surveyors, and others.
Much as an experienced home buyer’s agent should be able to refer you to home inspectors and related contractors, an experienced land buyer’s agent should be able to refer you to the various consultants who will help you perform due diligence on your land purchase.
Ideally, your agent should have preexisting relationships and experience working with the consultants they recommend. Completing land due diligence thoroughly and on schedule requires effective communication between all parties involved. If your agent can connect you with a full team of consultants, the due diligence process will be much less stressful and more efficient.
If you are buying land in Loudoun County for the purpose of building a home, then you must know (1) the likely value of the newly built house and (2) how much it will cost to build the house. If you do not know these two pieces of information, then it is impossible to know whether you are paying an appropriate price for the land.
If you intend to build a house in an area with no nearby new construction home sales, then estimating an appropriate offer price for the land is even more challenging. Without nearby new construction home sales, it is more difficult to determine what your newly built home will be worth and – by extenstion – how much to pay for the land. In these circumstances, you may need to apply a “new construction” premium to recent resale home sales to arrive at an estimate of new construction home values.
While most real estate agents can perform a comparative market analysis to estimate the value of an existing home, very few understand the costs involved in building a home (engineering, site work, vertical construction, construction loan interest carry, etc.). Without this knowledge, it is next to impossible to work backwards from a new construction home value to a residual land value (i.e., the price you should pay for the land).
I have personally invested in several new construction home projects, and I understand the time and costs involved in taking a site from raw land to finished home. I’d love to put my experience to work for you!
Whether you are buying land for recreational use or to build a new construction home, financing a land purchase can be more complicated than financing a traditional home purchase.
For one thing, if you already have a mortgage on another home, then you will have to determine if you can afford to carry a land/construction loan while keeping your existing mortgage in place. If not, then you can either buy the land outright or reduce your current debt obligations to the extent necessary to qualify for a land loan. In some cases, this could mean selling your existing home and living in a rental property while you build your new home.
Another major difference between land and conventional home loans is that underwriting requirements (debt-to-income ratios, minimum down payments, etc.) for land and construction loans tend to be more strict.
Construction loans typically cover the cost of the lot and the construction costs. They run for the duration of construction (normally 12-18 months) and convert into a permanent loan upon completion. During construction, you will make interest-only payments based on the amount you have drawn for construction.
Importantly, few lenders will lend on land unless it is tied to a construction loan. Therefore, if you do not plan to build on the land immediately and cannot afford to purchase the land outright, then you may have a hard time finding a lender who will give you a loan. The exception is specialty lenders, such as Farm Credit of the Virginias, that sometimes finance raw land outside city limits.
For more information on financing a new construction home, check out this blog post on the subject.
St. Louis Road, Middleburg, VA 20117
7231 Clifton Road, Clifton, VA 20124
12429 Mountain Road, Lovettsville, VA 20180
“I offer my highest recommendation to Jonathan Kennedy.”
I recently purchased property with Jonathan Kennedy. I would like to express my appreciation for the professionalism, knowledge, honesty, preparation, support and accuracy demonstrated by Jonathan throughout the entire transaction. All advertising materials and representations were clear and accurate. All financial information, closing estimates and real estate documentation were accurate and honest. The closing on the property occurred without stress, surprise or alteration to representations made. I received additional support from Jonathan subsequent to purchase as questions arose concerning zoning issues. I contacted Jonathan in the hope that he would have knowledge or information that might help. The response was immediate, accurate and very helpful. I offer my highest recommendation to Jonathan Kennedy. I sincerely hope to engage in future transactions with him and will gladly recommend him to my associates and friends.”
Thank you so much for taking the time to visit my website and learn more about me and my business. I’m excited to assist you as you shop for Loudoun County land for sale, and I can’t wait to hear from you! Give me a call at 703-665-9765 or email me at Kennedy@KennedySellsVA.com.
– Jonathan Kennedy, Accredited Land Consultant & Principal Broker, LandReady Real Estate & Land Brokerage