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January 2026

Before You Buy Land: What to Know Before Building a New Home

Buying vacant land for a new home can feel like a dream scenario—complete freedom, a custom design, and a fresh start. But not all land is created equal. While nearly any parcel can be built on, some come with hidden risks, delays, and costs that can quickly derail a project if they aren’t identified early. Below is a practical guide to the key things you should think through before committing to a parcel.

1. Start With the Property Basics

Before anything else, confirm the fundamentals:

  • Parcel number (APN) and exact location
  • Lot size and boundaries
  • Whether the property is in a city or county jurisdiction
  • Zoning designation and allowed uses
  • Any existing structures

These basics determine what can be built and which regulations apply.

2. Water Availability Matters More Than You Think

Water access is one of the biggest feasibility drivers.

  • Is municipal water available at the street?
  • How far is the nearest water main?
  • Is there an existing water meter, or will a new connection be required?
  • Does the pressure meet domestic and fire requirements?

If municipal water isn’t available, a private well may be required—adding cost, permitting, and long-term maintenance considerations. Learn more from your local water district or the California State Water Resources Control Board.

3. Sewer vs. Septic: A Critical Decision

Whenever possible, sewer-served parcels are preferred.

  • Confirm sewer availability and lateral location
  • Verify capacity with the local agency

If septic is required:

  • A percolation test must pass
  • The system must be approved by the health department
  • Adequate reserve area must exist
  • Ongoing maintenance is expected

Septic systems add risk, approvals, and timeline uncertainty compared to sewer connections.

4. Utilities Can Make or Break a Budget

Confirm early:

  • Electrical service availability at the street
  • Overhead vs. underground service
  • Proximity of a transformer or need for upgrades
  • Temporary construction power feasibility
  • Internet and telecom access
  • Gas availability (if desired)

Utility extensions are often underestimated and can significantly impact budgets. Utility providers like PG&E, SDG&E, or SCE can provide preliminary service information.

5. Easements & Title Constraints

A preliminary title report is essential. Look for:

  • Utility easements
  • Drainage easements or culverts
  • Access easements
  • No-build zones

Red flag: Easements that reduce buildable area or force major redesigns.

6. Topography & Slope Considerations

Land may look buildable, but slope tells the real story:

  • Flat lots are the simplest and most cost-effective
  • Moderate slopes require design and grading adjustments
  • Steep hillsides drive structural complexity and cost

Understanding drainage patterns and grading limitations early helps avoid surprises later.

7. Matching the Design to the Site

Not every home design performs well on every lot.

  • Does your desired home size fit the buildable envelope?
  • Are setbacks, slope, and orientation compatible?
  • Will excessive cut-and-fill be required?

Some designs technically “fit” but perform poorly—leading to higher foundation and construction costs.

8. Fire Protection & Safety Requirements

In California, fire regulations are non-negotiable.

  • Fire sprinkler systems may be required
  • Water flow must meet fire department standards
  • Fire department access must comply
  • Wildland-Urban Interface (WUI) rules may apply
  • Fire-resistant materials may be mandated

All homes must meet California Building Code and Title 24 energy standards.

9. Zoning & Local Regulations

Confirm local planning requirements:

  • Setbacks and height limits
  • Floor Area Ratio (FAR)
  • Design review or planning approvals
  • Special overlays (hillside, coastal, historic, etc.)

These regulations can directly affect home size, layout, and timeline.

10. Garage & Parking Rules

Many jurisdictions mandate:

  • A minimum number of parking spaces
  • Attached or enclosed garages

These requirements impact site layout and overall design feasibility.

11. Drainage & Stormwater Management

Stormwater compliance is increasingly important:

  • Existing drainage infrastructure
  • On-site retention requirements
  • Culverts or downstream impacts
  • Construction-phase erosion control

Poor drainage planning can delay permits and inspections.

12. Soil & Geotechnical Conditions

Most projects require a geotechnical report to evaluate:

  • Expansive or unstable soils
  • Liquefaction or landslide risk
  • Foundation type and cost implications

Soil conditions directly affect engineering and construction costs.

13. Environmental Constraints

Environmental restrictions may include:

  • Tree removal limitations
  • Protected species or habitat
  • Wetlands or riparian setbacks
  • Required environmental studies

These can affect both buildable area and approval timelines.

14. Access & Overall Buildability

A parcel must support both construction and long-term use:

  • Legal street access
  • Compliant driveway slope
  • Room for construction equipment
  • Adequate material staging space

Access challenges can add cost and complexity.

15. A Realistic Budget Check

Before purchasing, make sure your budget accounts for:

  • Utility extensions
  • Grading and foundation costs
  • Fire, energy, and code upgrades
  • Soft costs (permits, engineering, reports)
  • Timeline and carrying costs

Vacant land often looks affordable—until these costs are added.

16. Final Feasibility Assessment

At the end of the review, most parcels fall into one of three categories:

  • Low risk / straightforward
  • Moderate complexity (manageable with planning)
  • High complexity (requires specialized design-build expertise)

This is where working with an experienced design-build partner makes all the difference.

Thinking About Buying Land?

Before you commit, a professional site feasibility review can help identify risks, costs, and opportunities early—saving time, money, and frustration down the line.

At Wellmade, we evaluate land every day and know what it takes to turn a parcel into a successful home. If you’re considering buying land, we’re happy to review it with you before you make the leap. 

Reach out to a Wellmade expert to get your next project started!

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