The first step to building your dream home is picking the right lot, but how do you know what makes a good one?
Why it matters: Choosing the wrong lot can lead to a cascade of unexpected costs and frustrations. A little homework now saves major headaches later.
Your lot choice shapes everything from monthly utility bills to weekend backyard gatherings. We asked an expert for the key factors every homebuyer should consider before committing to a lot.
1. Look Beyond the Lot Lines
The most desirable lots often have less traffic and more space. When comparing properties, don't just look at the square footage. Instead, consider its position within the neighborhood.
"The things we look at when evaluating multiple lots in a neighborhood for a spec home are size, location, and orientation,” said Ben Neely, Owner of Riverbend Homes. “I think cul-de-sac lots are more desirable to people, as they have less pass-through traffic, and tend to be larger because of the pie shapes they create. If there are two equal-sized lots, but one is on a cul-de-sac, you should typically pick that one."
Long-term value: Cul-de-sac lots are ideal for families with children because they offer added safety and create more usable outdoor space due to their unique shape.
2. Understand the Sun's Path
Good architecture can solve many issues, but it can't change where the sun rises and sets.
"If you live in a hot climate, it’s important that you can find a lot that doesn’t fully face west. The western sun exposure will take a toll on any siding, painted materials, windows, and possibly heat the inside of the home," Neely said.
What to do: Consider your daily life and climate. An east-facing backyard gets morning light for coffee, while a north-facing lot might have a shadier, cooler patio in the summer. Even if you don't mind western exposure, a future buyer might.
3. Calculate the Cost of a Slope
A sloped lot might offer dramatic views, but it can also come with a steep price tag for development.
"For every foot of foundation height you have to add, you add $10-$15 per foot in added expenses," Neely said. "If you’re looking for a family-style house where you can have a big usable backyard space, the cost of bringing that to life on a sloped lot is going to be much more expensive."
Key takeaway: A seemingly cheaper, sloped lot can quickly become more expensive than a flatter one once site work is factored in.
4. Ask About Infrastructure
Never assume that utilities are a given. Rural and developing areas often lack basic infrastructure that can cost tens of thousands to install.
"When evaluating a community, ask if they have water, sewer, and gas access from the road. If not, drilling a well, adding a septic, and burying a propane tank, and all the underground utility lines required to supply the home combined can be upwards of $100,000 in some areas," Neely said.
What to do: Always ask for a property survey before you commit. It will reveal any potential restrictions, like drainage easements or building setbacks, that could prevent you from using the land as you envision.
5. Weigh the "Premium Lot" Price Tag
That corner lot or the one with the water view comes with a higher price, but it's an expense that typically pays off in the long run.
"The extra costs associated with premium lots are warranted and will only add value to the property long term," Neely said. "In my experience, people desire view as their number one priority, and privacy as their close number two."
Smart move: Paying more for a premium lot often delivers better resale value and daily enjoyment that justifies the initial investment.
6. Know What's Happening Next Door
The beautiful, empty field behind your lot today could be a new subdivision tomorrow. Doing your due diligence on surrounding properties is essential to protect your view and your investment.
"There have been several properties we’ve looked at with great views. However, looking at the adjacent land showed that it was owned by large development companies or corporations, which could potentially compromise the value of the new home," Neely said.
Reality check: A great view is only valuable as long as it lasts. Researching who owns the land around you is a non-negotiable step to protect your home's long-term value.
The Bottom Line
Choosing the right lot requires looking beyond the obvious. Take time to visit potential lots at different times of day, ask detailed questions about utilities and easements, and research surrounding land ownership.
Knowing these answers is the difference between loving your home for years to come and living with costly compromises you didn’t see coming.
Michael Letendre
Michael Letendre is a writer for NewHomeSource and Builder Magazine.