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The relationship between utilities and your lot can have a significant impact on the lot’s value. A lot requiring a septic system can add costs (which may decrease its value). The need to drill a well or to add off-site additions, such as sidewalks and parkways, can also negatively impact a lot’s value. Be sure to explore the cost of installing utilities and amenities before you buy any lot.

This section contains some “due diligence” items for you to consider when figuring the ultimate “cost” of your lot. Ask these questions of the seller and your agent, or research them with the appropriate county or city agency. Then create a list of all possible costs to prepare for your budget and estimate how long it will take to work through the permitting or approval process. Here’s a short list of questions to ask:

 Does the lot require gravel, asphalt, or concrete for its driveway?

 Will you need to install sidewalks?

 Will you need to install street lighting?

 Will the lot require extensive earthmoving or a special foundation?

 How far is the electricity from the build site, and how much will it cost to extend it to your property?

 What is the cost of connecting to the sewer or installing a septic system?

 Will the property support a required septic system?

 What is the cost of connecting to water or installing a well?

Many people get so caught up in the dream of building a house that they sell themselves into impractical situations. Keep your cool and do your homework. Buying a piece of land without researching all the issues and costs can leave you with a crushed dream and a useless piece of land.