Finding a lot is more than just finding the perfect location for your home. At Copper Ridge Custom homes, we’ll help you navigate the zoning and building regulations, percolation tests and more. Getting help with your lot selection is critical to the success of your new custom home project.
Property Features:
Of course, one of the top priorities when it comes to lot selection is finding an area that is beautiful, safe and in the right location for you and your family. We’ll take all of these considerations in mind as we help you select an ideal lot for your custom home—one that will complement the home design we’re creating for you. But be aware that certain site features may increase the cost to construct on a lot type. For example, slopes may give a fantastic view but will add site prep and extra foundation work. Waterfront or Riverfront land can require extra drainage and incur flood insurance.
Strong ROI Potential:
Finding the right lot is important, but so is finding it at the right price. Generally, the cost of land represents 17-25% of the total value of your home. If your budget is $350,000 a typical breakdown will look something like this:
Land – $70,000
Real Estate Commissions – $4,500
Carrying Costs on Construction Loan – $15,000
Total Construction Costs – $260,500
Total Cost of Home – $350,000
In this example, the land cost is 20% of the full cost of the house. Most experts recommend that the land cost be between 17-20% of the total value of the home. However, if land costs in the area are high, that figure can be stretched to 25%.
One thing to keep in mind is not to “overbuild” or “underbuild”. If the neighborhood you choose is made of up homes in the 3-4,000 square foot range, you should probably avoid building a 6,000, or 1,500 square foot home in the same neighborhood as your resale value may be negatively affected.
Suitability /Affordability for Construction
By enlisting our help in your lot selection, we can also help you assess building regulations, zoning laws, sewer and water lines, demolition and clearing costs, and more. The suitability of the lot is one of the most important determining factors during lot selection because certain building regulations and restrictions dictate the number of bedrooms and bathrooms a home can have, the number of floors allowed, whether or not there can be a basement and other constraints. For example, on rural lots that require septic, percolation testing of the soil will be required to know if the land can be developed or if an alternate sewage system must be used. We can help you by ensuring the lot you choose can accommodate the home you plan on building, and help you determine if features that will increase the cost of construction are worth the benefits.