The Building Process: Selecting a Lot

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Every person has a different idea of what constitutes ideal location when considering new home construction. For some, it’s a convenient drive to work, for others it’s quality of life issues such as a good school system and family-friendly neighborhood.

Take your time when choosing your new home site. While many details about your new home can be remodeled in later years as your lifestyle evolves, changing the location is not one of them. Consider your lifestyle - is it best suited for an urban, suburban or rural setting?

Residential Lot Buyer’s Guide

When you decide on a lot, you should take the time to truly evaluate the amenities you would like in the subdivision or area you plan on living in. The following are some, but not all, of the key issues you may want to consider.

Step 1 - Location

The first step in buying a lot and the most important is location. When choosing one for your dream home, first select the municipality and neighborhood desired.

Things to evaluate when selecting a municipality and neighborhood include:

• An urban, rural or suburban setting

• Proximity to your employment
• The quality of local school district
• Shopping, entertainment, parks and emergency services of the surrounding area
• Crime rate
• Public transit, if needed
• Potential traffic and congestion
• Property tax rate
• Zoning or permitted uses of land near any subdivisions being considered

Step 2 - Improvements/Features

The next step is to determine what each possible lot offers in terms of improvements or features. What utilities are available such as gas, electricity, sewer, water and garbage and how much it will cost to access them. Investigate features such as steep drop-offs, drainage problems or poor access to roads.

Improvements to keep in mind are:

• Sewer and/or municipal water availability or septic system and well: what is the cost of each and is it included in the lot price?

• Natural gas, electricity, telephone and cable TV availability and associated hook-up costs
• Curb and gutter with sidewalks or rural with ditches and culverts
• Drainage issues

Features/challenges to evaluate:

• Woods or wetlands
• Opportunity for an exposed basement
• Direction the house will face
• Suitable soil or subsoil
• Proximity to green or open spaces

Step 3 - Subdivision Controls

Develop a sense of the type of house you’d like to build including square footage, number of floors, types and number of rooms, architectural style, as well as any specific features you would like such as a pool, hot tub or deck. Then check each development’s protective covenants to make sure your house fits within those guidelines.

Some neighborhood amenities to consider include:

• Protective covenants, deed restrictions and architectural controls such as square footage, setbacks, roof pitch and required building materials
• Home Owners’ Association structure and fees
• Uniform lamppost and mailbox requirements
• Setback/building envelope rules

Step 4- Possible Additional Expenses

When buying a lot, there may be additional expenses that first time lot buyers might not think of. In order to minimize any financial surprises, consider the following among others:

• Sewer and water hook-up fees
• Tree removal needs or rules against
• Fill and/or removal of fill
• Other impact fees for capital improvements (see the municipality)
• Construction insurance
• Property Taxes
• Survey/engineering
• Building permit

Information provided by: The Metropolitan Builder’s Association and MLG Communities staff.