How to Buy Land

Buying land to build your dream home can be exciting but there are things you need to research before purchasing a piece of property to build. Some lots have complications that can make them unbuildable and if you don’t do your due diligence, you can possibly become the owner of a useless piece of land.

Do your homework or work with a professional builder or real estate investor to find out what preparation the lot needs before construction can begin and at what cost. Some raw lots can have over $100,000 in site costs so it is an expense you want to be prepared for. Review the information below to determine what to investigate before purchasing a plot of land to build.

Aspects to Consider When Buying Land for a Home Build

What makes buying land challenging is that the full representation of the condition of the land might not be evident on the surface. The type of soil is a critical piece of information you should understand before buying an existing lot. Proper soil testing should be completed to ensure the plot is suitable for building.

Zoning laws must also be taken into consideration before buying land. Permits will have to be issued before any construction can begin therefore you need to know what limitations and allowances you have with the lot you want to purchase.

Evaluating utilities is also necessary. Some lots don’t have easy access to public water, sewage, electricity, and gas. You will want to make sure to schedule a perc test to determine the site’s suitability for a septic system and dig a test pit to observe the soils dissipation. Longer utility runs, septic systems, storm retention systems and wells can be expensive to overlook. Other cost factors that need to be considered are poor soil, sloping areas, a large amount of tree clearing and stump removal, and the need for longer driveways. Difficult lots can lead to a significant increase in cost. However, doing the research before you purchase decreases that possibility significantly.

How to Choose Land in an Ideal Location

What factors should you be looking for that indicate the land is in a good location? As with anything in real estate, the conversation starts and ends with the location. Think about what you want the current and future situation to look like. Schools are always a factor, access to amenities, neighbors and the overall value of the area around you. Consider future development of the area and how and if you see the value of your property rising. The location will determine how your investment in your new home will increase over time.

What Land Tests are Required Before Building a House?

Certain tests are required before you can build a house. As mentioned before the most critical one to do is soil testing. Most home builders won’t even begin a new construction project until proper soil testing is completed. The results will reveal whether the soil is suitable enough for building the home you desire. The process is simple to perform by experts in that field.

When you intend to build a new home on vacant land, knowing what costs are ahead of you is vital. One of the biggest mistakes people make is not working with a reputable or trustworthy home building company, like Costa Homes. Companies with low standards, just trying to make a sale will promise lower costs without factoring in soil testing results. Therefore, you could be surprised by increased unexpected costs. The worst scenario comes if the house is built without performing these tests and is considered unsafe and unlivable once the soil settles. Be sure to work with a home building company that is capable in site preparation.


Another necessary step for building a new home is obtaining proper building permits. The process of obtaining a permit is straightforward. Your home building company can help and submit the application accordingly. The construction project can’t begin until building permits are issued, so this is a vital next step when test results are received.

A key component of the permit process is applying for a zone development review. This evaluation and potential inspections will reveal if there are any zoning limitations or zoning restrictions for your construction project. You can also contact the local zoning office to get further information so there are no surprises in the future. If you have any specific questions, you can reach out to the local government for a list of regulations.

The home builder you choose plays a big role and should find out and understand any and all limitations and building regulations. They will help you develop a site plan for your undeveloped land and then determine whether it’s possible to complete. It’s vital to work with a licensed and insured home builder.

It’s easy to be overwhelmed by the laws and regulations needed for permitting. Make sure your builder is proficient in helping with this process.  You don’t have to be an expert in any building codes or the best kind of soil needs to be on your land. Rely on your building experts to handle these aspects for you. This will allow you to focus more on the enjoyable aspects of building and designing your new home.

Financing Options for Buying Land to Build a New House

Buying or building a new home has financial responsibility and that can increase if building on a raw lot. The good news is you have some home loan and lot loan options available for the cost of the sale. Talk to your home builder to get a clearer picture of the total cost of your new construction.

A construction loan is most received when building a new home on land. You should prepare to make a down payment of at least 20% for construction loans.

Costa Homebuilders is here to navigate you along the winding road of your new construction project. Once you’ve chosen a piece of land to build on, we can evaluate and determine whether it’s suitable for a new home. We guide our customers through the necessary steps, making your custom home-building experience as smooth as possible is our goal.

Communication is a priority along with being transparent about costs and trying our best to minimize any surprises during the building process.

Don’t hesitate to reach out to us today to start the process to build your dream house.


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