Buying vacant land for building

Buying vacant land to build a home or structure is fundamentally different from purchasing an existing property. There is no standing structure to inspect, no existing appraisal comparable, and no guarantee that the land can support what you want to build.

84 steps across 12 sections

1. 1. Title and Ownership Verification

  • Order a title search from a licensed title company to confirm clear ownership
  • Review chain of title for gaps, disputes, or irregularities
  • Check for liens (tax liens, mechanic's liens, judgment liens)
  • Verify legal description matches the parcel you intend to buy
  • Confirm seller has the legal authority to sell (estate issues, trust ownership, LLC authorization)
  • Purchase title insurance (owner's policy)
  • Search for back taxes owed on the property at the county tax assessor's office

2. 2. Zoning and Land Use

  • Verify current zoning classification at the county or city planning/zoning department
  • Confirm your intended use (single-family residential, ADU, agricultural, etc.) is permitted under current zoning
  • Check for overlay districts (historic, environmental, scenic corridors) that impose additional restrictions
  • Review setback requirements (front, side, rear) — these determine the buildable area on the lot
  • Confirm minimum lot size requirements are met for your intended structure
  • Check maximum building height restrictions
  • Verify lot coverage limits (maximum percentage of lot that can be covered by structures/impervious surfaces)
  • Ask about future zoning changes or pending rezoning applications in the area
  • If current zoning does not permit your use, research the variance or rezoning process (cost, timeline, likelihood of approval)

3. 3. Survey and Boundary Verification

  • Hire a licensed surveyor to conduct a boundary survey
  • Obtain or verify the plat map from the county recorder's office
  • Confirm all boundary markers/pins are in place
  • Identify any encroachments (neighbor's structures, fences, driveways crossing your boundaries)
  • Verify the legal description on the deed matches the survey
  • Review the survey for irregular lot shapes that could limit the buildable area
  • Check if the lot has sufficient frontage on a public road (many jurisdictions require minimum road frontage)

4. 4. Utilities Access and Infrastructure

  • Water: Determine if municipal water is available. If not, research well drilling requirements, costs ($5,000 - $15,000+), and water table depth. Some areas require a well yield test.
  • Sewer: Determine if municipal sewer connection is available. If not, a septic system will be needed (see soil/perc test below).
  • Electric: Contact the local power company to confirm service availability, distance from nearest transformer, and connection cost. Runs over 500 feet from existing lines can cost $10,000 - $50,000+.
  • Natural gas: Confirm availability or plan for propane/electric alternatives.
  • Internet/telecom: Check broadband availability (increasingly important for remote workers). Rural parcels may only have satellite options.
  • Stormwater: Determine if the county requires a stormwater management plan or retention/detention system.
  • Get written cost estimates from each utility provider for connection — verbal quotes are not reliable.

5. 5. Soil Testing and Percolation (Perc) Test

  • Perc test: If no municipal sewer, hire a licensed engineer to conduct a percolation test. This measures how quickly water drains through the soil and determines if a septic system can be installed....
  • Soil/geotechnical report: Hire a geotechnical engineer to assess soil bearing capacity, stability, and composition. This determines what type of foundation is needed.
  • Check for expansive clay soils (common in parts of Texas, Colorado, Virginia) which can crack foundations
  • Check for high water table, which affects foundation type and basement feasibility
  • If the land is sloped, assess landslide/erosion risk
  • Review soil for contamination if the land was previously used for agriculture (pesticides), industry, or fuel storage
  • Perc test: $750 - $2,500
  • Geotechnical/soil report: $1,500 - $5,000
  • Phase I Environmental Site Assessment: $1,500 - $5,000

6. 6. Easements and Rights-of-Way

  • Review the title commitment for all recorded easements
  • Identify utility easements (power, gas, water, sewer, telecom lines crossing the property)
  • Check for access easements (neighbors who have legal right to cross your property)
  • Look for conservation easements or agricultural preservation easements that restrict development
  • Identify drainage easements that may limit where you can build
  • Verify you have legal road access — an existing dirt road does not guarantee a legal right-of-way
  • If the property is landlocked (no direct road access), negotiate an access easement before purchase

7. 7. Wetlands and Protected Areas

  • Check the U.S. Fish & Wildlife Service National Wetlands Inventory (NWI) map for the parcel
  • Look for visible signs: standing water, cattails, willows, saturated soil
  • If any wetland indicators exist, hire a wetland delineation specialist before purchasing
  • Federal law (Clean Water Act, Section 404) strictly regulates filling or disturbing wetlands
  • Even small wetland areas can trigger permitting requirements and significantly reduce the buildable area
  • Check for endangered species habitat designations
  • Violating wetland laws can result in stop-work orders, fines ($25,000+ per day), mandatory restoration, and civil liability

8. 8. Flood Zone Determination

  • Check FEMA flood maps (Flood Insurance Rate Maps / FIRMs) at fema.gov/flood-maps
  • Determine the flood zone designation: Zone X: Minimal flood risk (best case); Zone A / AE: High-risk flood zone (100-year floodplain) — flood insurance required if financing, building restrictions apply; Zone V / VE: Coastal high-risk ...
  • If in a flood zone, research Base Flood Elevation (BFE) requirements — your finished floor must be at or above this level
  • Understand that flood insurance costs can be $1,000 - $5,000+ per year in high-risk zones
  • Even outside mapped flood zones, ask neighbors and local officials about historical flooding
  • Check if the property is in a dam inundation zone

9. 9. Environmental Assessment

  • Research the property's historical use (county records, historical aerial photos, Sanborn maps)
  • If there is any history of industrial, commercial, or agricultural use, commission a Phase I Environmental Site Assessment (ESA)
  • Check the EPA's NEPAssist tool and state environmental databases for known contamination sites nearby
  • Look for signs of illegal dumping
  • If Phase I identifies potential contamination, a Phase II ESA (actual soil/groundwater testing) may be needed ($5,000 - $30,000+)
  • Under CERCLA (Superfund law), property owners can be held liable for cleanup costs even if they did not cause the contamination

10. 10. Road Access and Ingress/Egress

  • Confirm the property has legal access via a public road (not just physical access via a dirt path)
  • If accessed via a private road, review any road maintenance agreements and shared cost obligations
  • Check the condition of the road — will it support construction vehicles (concrete trucks, excavators)?
  • Verify the road is accessible year-round (some rural roads become impassable in winter or rainy seasons)
  • If a new driveway cut is needed, check county requirements for driveway permits, sight distance requirements, and maximum grade
  • Confirm emergency vehicle access (fire trucks, ambulances) — some jurisdictions require minimum road width and turnaround areas for building permits

11. 11. HOA, CC&Rs, and Deed Restrictions

  • Determine if the land is within a Homeowners Association (HOA)
  • If HOA exists, obtain and review all CC&Rs (Covenants, Conditions & Restrictions)
  • Check for architectural review requirements (approval needed before building)
  • Review minimum square footage requirements for new construction
  • Check for restrictions on building materials, colors, fencing, outbuildings, animals
  • Review any time-to-build requirements (some HOAs require construction to begin within 1 - 2 years of purchase)
  • Confirm current HOA fees and any special assessments
  • Even without an HOA, deed restrictions may exist — review the deed and all referenced documents

12. Raw Land Loans

  • Down payment: 30 - 50% (some lenders require 50% for truly raw land)
  • Interest rates: Typically 2 - 3% higher than conventional mortgage rates
  • Terms: Shorter than mortgages — often 5 to 15 years (some up to 20)
  • Availability: Limited; many national banks do not offer raw land loans. Local banks, credit unions, and Farm Credit lenders are more common sources
  • Requirements: Strong credit score (680+), detailed plan for the land, significant cash reserves

Pro Tips

  • Walk the property with a builder before making an offer
  • Make every offer contingent on due diligence results
  • Contact the county planning department directly
  • Budget 15 - 30% above the land cost for pre-construction
  • Get utility cost estimates in writing

Sources

Related Checklists