When you’re buying a piece of land to build your ‘dream’ home, the following deal-killers can easily turn your dream into a nightmare:
1. The Property Won't Perc (Septic Failure)
If the lot is not served by public sewer, the soil must pass a percolation test to support a septic system.
Problems include:
- Soil drains too slowly (clay)
- Soil drains too quickly (sand)
- High groundwater
- Shallow bedrock
Without an approved drain field, the property may not be buildable at all.
Even worse, some jurisdictions require a reserve drain field, doubling the required area.
2. No Legal Access To The Property
A surprising number of rural properties lack legal access.
You may need:
- Recorded access easements
- Adequate road frontage
- Emergency vehicle access
If the parcel is landlocked, lenders may refuse financing, and permits may be denied.
3. The Lot Is Mostly Wetlands
Wetlands often come with strict protection buffers.
Typical restrictions include:
- 25-100 foot no-build buffer
- Environmental permits
- Limited clearing
If wetlands occupy most of the parcel, there may be no buildable area left.
4. The House Site Is Inside the Floodplain
Properties inside a 100-year floodplain can be extremely difficult to build on.
Restrictions may include:
- Elevated foundations
- Flood-resistant construction
- Prohibited basements
- Insurance costs can be extremely high under the flood insurance program.
There is another category called the ‘flood-way’, where you have to design for the current, with the house up on stilts. You locate break-away panels perpendicular to the flow. These sites are much more difficult. If you are near a floodplain/way, I would recommend talking to the local government for direction.
5. Steep Slopes That Can Not Be Engineered Economically
Many jurisdictions restrict construction on slopes above 25-30%.
Even if building is technically allowed, costs can explode due to:
- Retaining walls
- Engineered foundations
- Complex drainage systems
Sometimes, the buildable pad simply doesn’t exist.
Note: Almost anything is possible. If you’re building in the mountains, drive around and see how your neighbors did it. You will see a lot of expensive retaining walls and complicated foundation systems, but you will also see some beautiful homes.
6. The Lot is Within The Watershed Protection Zone
This is an issue that can easily slip past your initial investigation, because it could be a federal program your county offices aren’t familiar with. Be careful.
Under the wetland protection rules, many properties contain Resource Protection Areas (RPAs) that require:
- 100-foot buffers along waterways
- Strict limits on clearing
- Stormwater controls.
Some areas may require water retention ponds on your property, or special pits to detail water flow. If the lot is narrow or heavily wooded near water, the RPA buffer can eliminate the buildable area completely.
7. Setbacks Eliminate The Buildable Envelope
Some parcels look large but have restrictive setbacks, such as:
- Large front setbacks along scenic roads
- Side setbacks in rural zoning
- Shoreline setbacks
When all setbacks are applied, the remaining buildable area can become tiny or oddly shaped.
8. Utility Easements Running Through Building Area
Utility easements can prevent construction over:
- Power lines
- Sewer lines
- Drainage channels or easements
- Gas lines
Sometimes, the ideal house site sits directly inside a major easement corridor
9. HOA, Historical Committee or Architectural Restrictions
Subdivision covenants sometimes impose restrictions that make your plan impossible.
Examples:
- Minimum home size
- Specific architectural style
- Garage placement rules
- Roof pitch requirements
I have mixed emotions about these restrictions. On one hand, you want new construction to somewhat match the neighborhood or subdivision where it’s being built. On the other hand, it can be frustrating to have your neighbors be in charge of designing your home.
10. Lack of Utilities
Extending utilities can become extremely expensive.
Examples:
- Power extension: $20++k
- Long driveways that make utility connections $$
- Off-site sewer connections
Sometimes, utility providers refuse extension due to distance or terrain. Other times, they charge you an excessive amount. It pays to ask around before starting your home. I have horror stories about exorbitant sewer tap fees that almost sank projects.
11. Soil Conditions That Require Extreme Foundations
Certain soil conditions can make construction prohibitively expensive:
- Expansive clays
- Peat soils
- Uncontrolled fill
- Sinkhole risk
Solutions might require:
- Deep piers
- Structural slabs
- Soil stabilization
Costs can add tens of thousands of dollars
12. Driveway Access Cannot Meet Code
Local codes often limit driveway slope to 10-15%.
Steep terrain can create problems such as:
- Emergency vehicle access issues
- Sight-distance problems
- Excessive grading
If you cannot construct a legal driveway, the lot may not receive a building permit.
The Most Important Lesson for Buyers
A piece of land may be:
- Beautiful
- Affordable
- In a great location
…but still be unbuildable. This is why experienced builders perform a site feasibility study before purchasing land.
FINAL THOUGHTS:
The 4 Questions That Determine If A Lot Is Buildable
- Can you reach it? (legal access)
- Can you place a house? (setbacks and slopes)
- Can you support utilities? (septic, well, power)
- Can you get permits? (environmental and zoning)
If any of these fails, the project often stops!
