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When you begin to consider building a custom home, you are most likely considering purchasing a lot. Here are a few things you need to know before you buy a lot and some resources to help!

You Need More Than a Realtor

When you’re looking for a lot to build on, a Realtor can certainly help you narrow your options. While the Realtor may be a good guide, the Realtor is not responsible for determining whether or not the house you’d like to build can actually be built on the lot you are selecting. So, instead of buying the lot first, we highly recommend using a collaborative team approach that includes the architect, builder and/or civil engineer to help you make the final decision about purchasing a lot in Maryland. No matter what, your offer should include the opportunity to conduct a feasibility study. Here’s why.

Get Your Team In Place

Interview and discuss your desired home with a builder before you go shopping for a lot. An experienced builder will help you understand the minimum requirements and also provide important variables to consider. Mueller Homes typically assembles a team for you which can include an architect, engineer, or other professionals that will help guide your decision making process.

What is a Feasibility Study?

A feasibility study helps you understand the condition of the lot, in relation to the home you’d like to build. It will help you understand the associated costs required to make the lot buildable, any local regulations or restrictions that apply,

The main goal of conducting a feasibility study on a lot is to understand the site considerations. Typically, a surveyor or civil engineer will be sought for this phase of the process to evaluate topography, government ordinances, forest conservation or waterfront restrictions, grading, utilities, and storm water management considerations.

If, for example, a lot has significant grading requirements such as a large limit of disturbance, steep slopes, heavily wooded areas, or storm water management considerations, there will be a corresponding expense associated with getting the site prepared and permitted to build. These costs will need to be factored into your overall budget and potential negotiations on the lot. Sometimes, a higher priced lot with less site work will cost less overall than a bargain lot at a lower price.

Typically, a feasibility study will be conducted as part of your offer. If you’ve never purchased a lot, this can help you to avoid serious issues. Here is a story to demonstrate why collaboration is so important.

A few years ago, we were approached by Dave and Suzanne. They had purchased a lot in an area that was very desirable and paid a premium for the land. After it was purchased, they began working on plans for their dream home. They were very excited by the time they met with us to get started building their dream home. However, when we visited the property, we were immediately concerned about the topography of the land, set back requirements in relation to nearby homes, and well/septic requirements.

The Lot was also located near a tributary which carried with it even more restrictions. We concluded that the location was not suitable for the size and type of home they wanted to build. They had spent a tremendous amount of time, money, and effort and now they had a very hard decision to make – move forward building a different type of home, that was not their dream home, or selling the property and starting over.

This is an unfortunate, but not uncommon, story. The moral is that if you are looking to buy a Lot or a piece of land, be sure to have your team selected, and on standby, so that they can help you determine if the Lot is the right fit for the home you want to build. Alternatively, having flexibility with your dream home concept will provide more alternatives, if you’ve already bought the Lot.

That “Cheap Lot” Could Cost You More

If you purchase a piece of land, primarily based on price, you may discover unexpected issues later on that could be more costly in the long run. Here are some things to consider:

  • Permitting and impact fees vary by county and jurisdiction so these must be factored into the overall cost/budget.
  • Will additional clearing or grading be required? Site work and fill dirt can increase your cost by thousands.
  • Does the Lot require a septic system, mounded system, or have access to public utilities? The cost variables can be substantial.
  • Is the property located in/near the waterfront? There are a variety of additional considerations including critical area requirements, impervious surface calculations, and impact fees that must be factored into the overall cost and time schedule.
  • Does the property need to have a site development plan approved by the county? This can add significant time and money to the overall budget.

Of course, these are just some of the issues that must be considered. Meeting with an experienced builder before you buy the Lot will save you time and money in the long run. Check out the free resources below to help you make informed decisions.

Mueller Homes has been handcrafting homes, on your lot, for over 30 years. Contact us today to start the conversation! MuellerHomes.com

Free Resources: Checklist for Purchasing Lots or Land