How to Choose Land for Building: What They Don't Tell You Until It's Too Late

That perfect piece of land with the amazing views and the too-good-to-be-true price? It might be perfect. Or it might be a $50,000 nightmare disguised as an opportunity.

The difference between a great building lot and a money pit isn't always visible from the road. This post is the due diligence checklist I wish I'd had before buying my land - compiled from my mistakes and those of 30+ other owner-builders.

Cost of thorough due diligence: $3,000-$8,000 Cost of skipping it: $20,000-$100,000+ in hidden expenses

Let's make sure you're in the first category.

The 27-Point Due Diligence Checklist

Print this. Use it. Don't skip items because you're excited.

Section 1: Buildability Basics

1. Zoning Verification

[ ] Confirmed residential construction allowed
[ ] Minimum lot size requirements met
[ ] Setback requirements documented
[ ] Height restrictions noted
[ ] Obtain zoning letter from county/city

Why it matters: "My '5-acre dream lot' turned out to be zoned agricultural with 20-acre minimum for residential. County wouldn't grant variance. $65K lot I couldn't build on." - Tom, Colorado

How to check: Call planning/zoning department, get it in writing

2. Survey and Boundaries

[ ] Professional survey completed (not pin flags from realtor)
[ ] All corners properly marked
[ ] Easements identified and located
[ ] Encroachments identified
[ ] Buildable area calculated after setbacks

Cost: $800-$2,500 Red flags: Seller resists survey, "old survey is good enough," unclear boundaries

Why it matters: "Bought lot based on seller's old survey. New survey revealed power company easement exactly where I planned to build. Had to redesign entire site plan." - Rachel, North Carolina

3. Soil Testing (Foundation)

[ ] Soil samples taken at building site
[ ] Bearing capacity determined
[ ] Expansive soil potential assessed
[ ] Rock depth determined (if applicable)
[ ] Foundation recommendations obtained

Cost: Geotechnical report $1,200-$3,000 Red flags: Visible signs of ground movement, extremely clay-rich or sandy soil, nearby foundation problems

Why it matters: "Skipped soil test to save $1,800. Foundation required engineered solution for expansive clay. Extra cost: $18,000." - Mike, Texas

4. Septic Suitability (if not on sewer)

[ ] Perc test completed successfully
[ ] Soil evaluationfor septic system size
[ ] Primary and reserve drain field areas identified
[ ] Setback requirements from well/property lines verified
[ ] System type and cost estimated

Cost: Perc test/soil eval $600-$1,500 Red flags: High water table, rock close to surface, failing systems in area, small lot size

Critical: Get this BEFORE closing. Make offer contingent on passing perc test.

Why it matters: "Closed on land without perc test. Failed perc. Only option: $32,000 advanced treatment system vs. $8,000 conventional I'd budgeted." - Lisa, Georgia

5. Water Source

[ ] If municipal: Connection cost estimated
[ ] If well: Typical depth researched
[ ] Water quality issues in area researched
[ ] Water rights verified (especially in Western states)
[ ] Cost fully estimated

Municipal connection cost: $2,000-$20,000 (depends on distance) Well drilling cost: $15-$60/foot, depths 100-1,000+ feet

Red flags: Neighbors' wells very deep, known water quality issues, water rights restrictions

Why it matters: "Realtor said 'wells in this area are 200 feet.' Hit water at 680 feet. $34,000 well instead of budgeted $8,000." - James, Arizona

Section 2: Access and Utilities

6. Road Access

[ ] Legal access verified (deeded or easement)
[ ] Road maintenance responsibility determined
[ ] Fire department accessibility confirmed
[ ] All-weather access possible
[ ] Snow removal responsibility (if applicable)

Red flags: Easement through hostile neighbor's property, private road with unclear maintenance, seasonal access only

7. Driveway Cost

[ ] Length measured
[ ] Slope assessed
[ ] Material requirements determined (gravel, asphalt, concrete)
[ ] Culvert/drainage needs identified
[ ] Quotes obtained

Cost range:

Gravel: $3-$8 per linear foot
Asphalt: $15-$30 per linear foot
Concrete: $40-$100 per linear foot
Culvert installation: $500-$3,000

Why it matters: "My '300-foot driveway' was actually 875 feet with 18% grade requiring 4-foot culvert. $24,000 vs. budgeted $5,000." - David, Virginia

8. Electric Service

[ ] Distance to power measured
[ ] Voltage available confirmed (200 amp service)
[ ] Connection cost estimated
[ ] Overhead vs. underground cost differential
[ ] Timeline for connection determined

Cost range:

At road: $500-$2,000
Less than 300 feet from road: $3,000-$8,000
300-1,000 feet: $10,000-$35,000
More than 1,000 feet: $35/foot+

Critical: Get written quote from power company before closing

9. Internet/Communications

[ ] Broadband availability researched
[ ] Actual speeds tested (not advertised speeds)
[ ] Satellite internet viability assessed
[ ] Cell coverage verified

Why it matters: If working remotely, this isn't optional. Starlink is game-changer for rural areas but verify if needed.

10. Natural Gas (if desired)

[ ] Availability confirmed or propane plan made
[ ] Connection cost estimated
[ ] Tank location and size for propane determined

Section 3: Environmental and Physical Constraints

11. Flood Zone

[ ] FEMA map checked
[ ] Flood zone designation documented
[ ] BFE (Base Flood Elevation) determined if in flood zone
[ ] Flood insurance cost estimated
[ ] Construction requirements for flood zone researched

Use: FEMA Map Service Center (msc.fema.gov)

Impact if in flood zone:

Zone AE: +$15,000-$40,000 for elevated construction
Zone VE: +$50,000-$150,000 for pile construction
Insurance: $1,000-$5,000+ annually

Red flags: "Minimal flooding" claims from seller, water stains on trees, debris patterns

12. Wetlands and Water Features

[ ] Wetlands presence researched
[ ] Stream/creek setbacks determined
[ ] Delineation completed if needed
[ ] Buffer requirements documented
[ ] Building area after buffers calculated

Cost: Wetland delineation $2,000-$8,000 Impact: 25-150 foot buffers can eliminate building areas

13. Slope and Grading

[ ] Topography assessed
[ ] Slope percentage calculated
[ ] Cut/fill requirements estimated
[ ] Retaining walls needed?
[ ] Erosion control requirements determined

Slope costs:

0-5%: Minimal impact ($2,000-$5,000)
5-15%: Moderate ($5,000-$15,000)
15-25%: Significant ($15,000-$35,000)
25%: Major engineering ($35,000-$100,000+)

14. Trees and Vegetation

[ ] Clearing limits determined
[ ] Protected trees identified
[ ] Tree removal permits researched
[ ] Clearing cost estimated
[ ] Stump removal included in estimate

Costs:

Basic clearing: $1,500-$4,000 per acre
Large tree removal: $500-$2,000 per tree
Protected tree permits: $50-$500 per tree
Stump grinding: $200-$500 per large stump

15. Rock

[ ] Rock presence researched
[ ] Depth to bedrock determined
[ ] Blasting requirements assessed
[ ] Blasting cost estimated if needed

Rock costs if significant:

Removal: $35-$150 per cubic yard
Blasting: $10,000-$50,000+

16. Contamination

[ ] Phase 1 Environmental Assessment considered (if industrial/commercial nearby)
[ ] Underground storage tanks researched
[ ] Prior use investigated
[ ] Neighboring properties assessed

Red flags: Old gas stations nearby, industrial sites, agricultural chemical use, oil stains

Section 4: Legal and Regulatory

17. Title Search

[ ] Title report obtained
[ ] All easements reviewed
[ ] Right-of-way issues identified
[ ] Liens checked
[ ] Restrictions noted

Cost: Usually included with closing

18. HOA and Covenants

[ ] HOA documents reviewed completely
[ ] Building restrictions documented
[ ] Architectural review process understood
[ ] Fees and assessments noted
[ ] Fine structure reviewed

Red flags:

Owner-building prohibited
Mandatory builder list
Excessive architectural restrictions
High/increasing fees
Special assessments pending

19. Building Codes

[ ] Jurisdiction identified (county, city, or none)
[ ] Code adoption status verified
[ ] Permit costs estimated
[ ] Special requirements identified (fire, seismic, etc.)

20. Impact Fees

[ ] School impact fees researched
[ ] Traffic/road impact fees researched
[ ] Park/recreation fees researched
[ ] Water/sewer impact fees researched
[ ] Total impact fee exposure calculated

Range: $0 (rural, no codes) to $60,000+ (high-growth suburban)

Section 5: Natural Hazards

21. Wildfire Risk

[ ] Fire hazard zone designation confirmed
[ ] WUI (Wildland-Urban Interface) requirements researched
[ ] Fire district requirements identified
[ ] Insurance availability confirmed
[ ] Additional construction costs estimated

WUI costs: +$15,000-$40,000 for fire-resistant construction

22. Seismic

[ ] Seismic zone researched
[ ] Special foundation requirements identified
[ ] Engineering costs estimated

High-seismic areas (CA, WA, parts of other states): +$12,000-$30,000

23. Wind/Hurricane

[ ] Design wind speed determined
[ ] Hurricane code requirements researched
[ ] Additional costs estimated

Coastal high-wind areas: +$15,000-$80,000 (HVHZ most expensive)

24. Other Hazards

[ ] Tornado risk assessed
[ ] Landslide potential researched
[ ] Radon zone checked
[ ] Termite pressure noted

Section 6: Neighborhood and Context

25. Future Development

[ ] Adjacent parcels' zoning researched
[ ] Planned developments identified
[ ] Road improvements planned
[ ] Commercial development potential noted

26. Comparable Sales

[ ] Recent land sales prices reviewed
[ ] Recent home sales prices reviewed
[ ] Oversupply or undersupply assessed
[ ] Resale potential evaluated

27. Gut Check

[ ] You've visited at different times of day
[ ] You've visited in different weather
[ ] You've talked to neighbors
[ ] You've driven the area extensively
[ ] You still love it after all due diligence

The Hidden Cost Calculator

Use this to estimate your true all-in land cost:

Base Land Price: $________

Add:

Survey: $________
Soil testing: $________
Perc test/septic evaluation: $________
Title work/legal: $________
Well (if applicable): $________
Electric connection: $________
Driveway: $________
Site clearing: $________
Grading: $________
Impact fees: $________
Septic system: $________
Erosion control: $________
Tree removal/permits: $________
Rock removal/blasting: $________
Retaining walls: $________
Special foundation requirements: $________
Other: $________

Total Land + Site Development: $________

Common reality: "$50K land" becomes "$90K ready to build"

Red Flags That Mean "Walk Away"

Some issues are manageable. Some are deal-breakers.

WALK AWAY if:

Failed perc test (unless you can afford advanced system)
Unbuildable due to setbacks/buffers after wetlands delineation
Zoning doesn't allow residential and variance unlikely
Massive rock requiring extensive blasting
Contested property boundaries or unclear title
Extremely steep slopes requiring $100K+ in site work
Contamination issues
Hostile easement situations
Flooding evidence but not mapped (seller hiding)

PROCEED WITH CAUTION if:

HOA with restrictive covenants (read them all!)
Long driveway (budget properly)
Utilities more than 500 feet away (get quotes)
Sloped lot (get engineering assessment)
Wildfire risk (understand costs)
Flood zone (understand costs and insurance)

The Due Diligence Timeline

Week 1-2: Research Phase

Order survey
Request title search
Research zoning and codes
Check FEMA flood maps
Contact utility companies for quotes
Research septic/well requirements

Week 2-3: Testing Phase

Schedule perc test
Schedule soil testing
Visit site multiple times
Talk to neighbors
Measure distances (driveway, utilities)

Week 3-4: Analysis Phase

Review all reports
Calculate total costs
Assess deal-breakers
Renegotiate if needed
Make go/no-go decision

Typical contingency period: 30-45 days (negotiate for adequate time)

Making the Offer

Contingencies to include:

Satisfactory perc test (if septic)
Satisfactory survey (boundaries and easements acceptable)
Satisfactory title (clear, no liens)
Financing (if applicable)
Feasibility (sometimes umbrella for all of above)

Earnest money: 1-5% typical. Protect it with proper contingencies.

Due diligence period: Negotiate 30-60 days to complete all investigations.

The Cost-Benefit Decision

Question: Is this lot worth the total all-in cost?

Consider:

Total land + site work cost vs. finished lot elsewhere
Your attachment to this specific location
Resale potential given site limitations
Whether issues are fixable or permanent

Example:

Raw land: $60,000
Site work: $45,000
Total: $105,000

vs.

Finished lot in subdivision: $95,000
Utilities at street
No site work needed
Less risk

Sometimes raw land is still worth it (views, privacy, acreage). Just know what you're getting into.

After You Buy: Lessons Learned

What owner-builders wish they'd known:

"I wish I'd budgeted 30% more for site work" - It's always more than estimates
"I wish I'd understood the soil before buying" - Foundation is too important to guess
"I wish I'd measured the driveway myself" - Seller's estimate was half actual length
"I wish I'd visited during rain" - Would have seen drainage issues
"I wish I'd read HOA docs before closing" - Restrictions killed my plans
"I wish I'd gotten well depth guarantee in writing" - Seller's claims were lies
"I wish I'd talked to all neighbors" - One hostile neighbor caused endless problems

Your Move

Before you make an offer:

Print this checklist
Visit the property multiple times
Get quotes for major items
Calculate total all-in cost
Compare to alternatives
Include protective contingencies
Trust your gut

Your land is the foundation (literally and figuratively) of your build.

Get this right, and everything else is manageable. Get this wrong, and you're fighting uphill from day one.