Buying Land and Building a House: Step-by-Step Guide

It’s possible to finance a ground-up build, but not quite in the same way as if you were buying an already-built property. Here’s what to consider if you’re debating whether you should build or buy a house in today’s market. If you decide to buy land and build in a remote location, it may be difficult to find buyers for your property later on. Ultimately, when you buy land and build, you’ll want to find people you can trust to walk you through the process. Building a house also means that your projected timeline might not always go to plan.

Many people dream of building a home from the ground up, whether it’s purchasing land in Concord, New Hampshire, or finding a lot near Spokane, Washington. Providing cost-efficient designs with a focus on construction costs and minimum regulatory compliance, our site designs maximize development potential and utilizing creative regulatory compliance to preserve future development potential. Buying land before you’re ready to build gives you flexibility, peace of mind, and control over your timeline. Buying the land first lets you plan your build on your own timeline. The down payment — the portion of the home’s purchase price that you pay upfront — is one of the most significant upfront costs of buying a home.

How Much Does it Cost to Build a Custom House in San Diego, CA in 2026?

Unimproved land is one step up from raw, with perhaps some utility access or a well. No utility lines, no well, maybe not even a road to the property. “I would say for the absolute bare-minimum home, you’re looking at about $140 per square foot, with standard setbacks and septic,” says Van Camp.

• Missing or wrong papers often cause delays or even a “no” from the city.
• As you consider whether building or buying a home is right for you, it’s important to recognize that both processes include their own set of costs and potential stressors.
• Verify street access, since landlocked parcels without a road connection may require costly easements.
• On June 7th, 2016, the draft of the Land and Building Tax Act was approved by the government in Thailand and released in a Government Gazette.
• Before you look at land, meet with multiple builders to gain a high-level understanding of what the build price by square foot will cost.
• Once you’re a homeowner, you’ll also be responsible for taxes and insurance, and you’ll need to be prepared for occasional repairs and upgrades as well.

The new land and building tax law in Thailand are worth watching closely to see what, if any, outcome it will have on an already fragile economy. You must conduct due diligence on the property to ensure the lot is buildable and the project is feasible within your budget. When a company purchases land and buildings, the full cost is added to the balance sheet. To verify if land is buildable, you should check zoning codes, deed restrictions, topography reports, flood maps, and consult a local planning office.

• Always check FEMA’s flood zone to ensure it’s safe to build.
• At Buildable, we employ a proprietary Active Search process to bring opportunities that may not be on the Multiple Listing Service (MLS) to our clients.
• How long does it take to build after buying land?
• A construction loan can cover both the cost of the land and building the home, then convert into a permanent mortgage after construction is complete.
• “We wanted a 100% custom home and worked closely with the builder to make sure the design was right for us,” she says.
• The Division of Zoning is where you start for building or development questions.

You will need to ensure that the lot you’re looking at will align with your vision for building a home. Land use and zoning laws involve regulating the use and development of the real estate. Our expert team at Buildable will conduct a 28-point Land Report of your lot to ensure it’s buildable. You need to make sure it’s buildable and not cost-prohibitive. Non-buildable land is sold every day to people that don’t do their due diligence.

Step 3: Submit application

These areas have specific rules for development and land use. The Division of Zoning is where you start for building or development questions. Managing permit applications while running active construction projects can drain resources and lead to costly project delays. To apply for a building permit in Jersey City, you’ll need to submit specific documents and follow a defined process. From zoning approvals to final inspections, even straightforward construction jobs can face delays if you’re not familiar with the city’s specific requirements and protocols. Building often costs more than purchasing an existing home, but it gives you full customization and new construction benefits.

Land and buildings

However, additional requirements including a well or septic system can impact if the lot is buildable at all. Before you look at land, meet with multiple builders to gain a high-level understanding of what the build price by square foot will cost. Like most builders, they don’t typically come onto a project during the early phase of land acquisition, so you’ll need to contract with them for consultation. This is baked into our process at Buildable, so you can be confident that we’ll help you at every step of the building process. However, a real estate agent won’t be able to advise on the project beyond zoning or high-level data points. Use our calculator to understand what building in a particular area will cost.

If the land is in a neighborhood or subdivision, check for HOA restrictions that might affect the type of home you can build. All questions to staff should be emailed directly to a staff member or the general Division of City Planning email.To learn about the zoning standards that apply yo your property, enter your address here. Our team can guide you and your project through the regulatory and permitting process at the state, county, and township levels. Our team is committed to providing timely updates and presentations to design teams and homeowners, ensuring centralized information for smooth communication with contractors and clients throughout your project’s lifecycle. We set precise timelines, collaborate seamlessly with township departments, and leverage strong relationships with reviewers and state agencies to ensure your project is completed correctly the first time.

“You’ll also want to find out how much it will cost to put in a septic, bring in power, build a driveway — all of which are things you can make part of your due diligence.” “If you’re buying on your own, you’ll want to have the soil tested before you commit,” adds Van Camp. “You could end up having to do another $300,000 to  $400,000 in land improvements before you can build,” he says. Leyba explains that in Santa Fe, buyers might be able to find land for as little as $100,000 or less, but that doesn’t mean the land cost ends there. Find an area you really want to be in, think about how much land you want, and whether you want to be in a specific county or school district,” she suggests.

Upon successful completion of all required inspections, a Certificate of Occupancy is issued, signifying that the building is safe for occupancy. Once your application is approved, you’ll receive your building permit. Your application and plans will be reviewed by the Construction Code Office to make sure they meet all building codes and regulations.

Improved land means that the property already has utilities onsite, a well, and road access, and the lot is often in an established residential neighborhood as opposed to in a more remote or rural area. Costs for both the property and constructing the home can vary widely, based on location, acreage, and what kind of house you plan to build. Some buyers purchase land through a builder; in these cases, the property is already subdivided, zoned, and ready to build.

HISTORIC PRESERVATION

There are also specific rules for how driveways should be marked. You can’t park in front of your house between it and the street. This shapes how neighborhoods grow and change over time.

Lot loans generally have a higher interest rate because they are amortized over 15 years instead of 30 years. Construction loan rates are generally slightly higher (i.e., a quarter-point higher). You usually need a down payment of at least 20 percent for most loans. There are usually requirements that the home is a primary residence, but there are other loans for investment properties.

Leyba also notes that just because a piece of property is for sale at a low price, that doesn’t mean it’s suitable for building a house. Professionals who need to navigate real estate investments, What Is The Income Summary Account land use planning, and property law need first to understand the intricacies of these rights. It is essential to understand whether an asset is considered real or personal property, as these two types of property are subject to different legal rules in areas as diverse as taxation, inheritance, and transfer of ownership. Real property refers to land and anything permanently attached to it, such as buildings or natural resources. Various types of real property exist, such as residential, commercial, agricultural, and industrial.1 Each category comes with its unique set of rules, rights, and responsibilities, influencing transactions, development, and usage. Basically, the purpose of this act is to get anyone or any entity that benefits from the ownership of land or buildings to pay land or building tax.

Buildable offers land experts who can work with you on every step, so you have less to worry about. While that’s not a common skill set, especially in San Diego, an experienced Realtor can help you weed out the non-viable lots. You can use our calculator to view general price ranges of land in certain areas. At Buildable, we watch the market and review every lot that becomes available every day, so we have general ranges for simple, straightforward lots. Once you’ve set your budget, use your land allocation to determine if it aligns with your desired area based on current land prices.

You must explain your project to the Zoning Board for approval. They work like a court, looking at how these changes fit with the city’s plans and affect the community. Jersey City has an easy-to-use website for zoning permit applications. The Tax Assessor’s Office looks at this fee during the permit process. These guide what can be built and what activities are okay, which helps the city develop smoothly.

You could lease it for mobile homes, billboards, or storage while you wait to build. Vacant land can be an asset that earns passively. To maximise ROI, choose growth areas, consider flipping, subdividing, renting out land, or pairing with owner financing to attract buyers. In Colorado, a buyer skipped the percolation test and get a small business loan online found out they couldn’t build a septic system without expensive blasting.

Like any other real estate transaction, Ragsdale says that buying land and building your home can involve its share of issues. Leyba says that for buyers planning to build soon after buying the land, trying to do two separate loans on the land and the house can be a challenge. While land loans aren’t always easy to come by, there are a few ways to finance your purchase, depending on the type of land you’re buying, its location, and how soon you plan to start building your new home. While not all of those homes were private builds or constructed on land separately purchased by the buyer, it’s safe to say that buying land and building a house on it has become more popular than ever. If you’ve always dreamed of buying a piece of land and building a home on it, you’re not alone!

The Zoning Board of Adjustment in Jersey City has a key role in land use decisions. For best results, use a computer for construction permit applications. Jersey City now uses a digital system for zoning and permit applications. New rules about how ADUs should look help make sure they fit local standards9.

It will change how development fees work from April 1, 20241. It brought new zone types and improved how houses are built1. It’s very important to follow the rules listed on the checklist. Missing or wrong papers often cause delays or even a “no” from the city.