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Tips for Finding the Perfect Lot for Your New Home Construction Project

May 22, 2019 By: Great Midwest Bank

Purchasing the right lot to fit your new home construction project is no small task. Consider these three tips as you shop for the right piece of land.

Selecting a lot for new home construction isn’t a decision that should be taken lightly. After committing to build a new home, it can be easy to get caught up in important details like exterior design and selecting a builder. However, choosing the right lot for your new home construction project can greatly affect the future value of this life investment you’re committing to. Take some pressure off of this process by considering these three tips when purchasing the right lot for your new home construction.

[Common Questions about New Home Construction Loans]

Location, Location, Location

Making a checklist of must-haves and important features can be helpful in determining where you should build your new home. Is privacy important to you, or would you prefer to get to know your neighbors and create friendships with the people in your neighborhood? Do you drive to work? If so, how long would the commute be in this location? A good tip is to take a drive around the area during the morning and evening rush to get a realistic sense of traffic.

If you have children still attending school, be sure to look into the local school system. It may also be helpful to look into the available local public transportation depending on which school your child is looking into. If you don’t currently have school-aged children, the local school system can still be a great indication of the eventual resale value of your new home construction project.

In addition, be sure to take yard space and the maintenance that comes along with it into consideration. If you’re interested in building a backyard pool, garden, or other structure, the shape and slope of the lot itself will play a role in how the space can be utilized.

Be Prepared for Hidden Costs

It can be nearly impossible to find the perfect lot that doesn’t need any enhancements, so chances are there may be some site improvement costs on the horizon. The challenge is assessing the sneaky hidden costs, like extra fill and expensive landscaping if retaining walls become necessary.

According to Building Advisor, fees and permits for a new home construction can range upwards of $10,000, so be sure to take that into consideration. Also, if a home is a long distance away from utility lines, there may be a hefty fee to extend the utilities to your new home.

Extra site improvement costs can make or break a new home construction project.

Do Your Research on Restrictions

Neighborhood, association and municipal restrictions also play a role in deciding where to build your new home construction project. There are often requirements related to minimum and maximum home sizes. Styles of homes can also be restricted. Material requirements may impact your costs.  Exterior stone and siding are two items that are controlled by neighborhood associations.

[Your Guide to Home Construction Loans]

Not sure where to start on finding the right lot for your new home construction project? 

Ask an experienced Great Midwest Bank Loan Officer for some direction on a qualified Real Estate Agent or Builder to point you in the right direction. But most importantly, be patient.  With a somewhat limited supply of lot inventory on the market, it may take some time to get your dream lot for that dream home.

Posted in  Home Construction Loans