Thinking of Building a New Custom Home in Colorado?
Here a some things to consider before for buying land for your new home in Larkspur, Sedalia, Parker, Castle Rock or Monument, Colorado.
Sometimes, buying an existing, outdated home just won’t work for you. You might be tired of competing for highly desired homes in the neighborhood you want, you are a Denver urban dweller that wants to live on acreage outside city limits, you don't like the idea of living in an older house, or you just want to put your personal touches on your new home.
Regardless of your reason, if you’re starting from scratch, the first thing you need to do is buy a suitable piece of Colorado land, which can be a simple process – or prove problematic if you, your Agent, and your Advisors fail to do your due diligence.
Whether you decide to buy in Castle Rock, Sedalia, Larkspur, Parker, Monument or the Black Forest, be sure to follow and add to these steps when you purchase your plot of land.
[ ] Important: First, understand what type of home you can afford to build. The price of your land is only one part of your new home’s cost. The land you buy might require extensive infrastructure costs prior to the construction of your home. These might include retaining walls, municipal tap fees, long driveways, architectural controls, expansive soils, engineered septic’s and more. You could eat up much of your investment in the land before you start building.
[ ] Make sure you are approved for a loan and are being represented by a professional real estate agent. For more information read: Checklist - Submitting a Real Estate Offer in Colorado.
[ ] If possible, add a local home builder or architect to your team that understands local construction costs AND how the lands topography impacts a home’s design. In Douglas County, very rarely will a specific home design fit on all parcels of land.
[ ] Review the following with your Agent, Counsel, and Advisors to determine potential risks and costs associated with each task:
1. Property Taxes
2. Zoning of current and surrounding property
3. Architectural Guidelines and Covenants (minimum size home, specific roof, etc)
4. Topographical and Boundary Surveys
5. Driveway length and grade
6. Utility Availability & Costs
7. Utility laterals to home
8. Municipal Tap Fees
9. Well Permit, Drilling and Pump Fees (if applicable)
10. Soils Report (Foundation) & Percolation Tests (for septic)
11. Septic Design
12. Retaining Walls
13. Tree Clearing and Grub-Out
14. Required Cut and Fill Dirt
15. Potential Rock Blasting
16. Federal, State and Local Laws
17. Environmental Concerns
In summary, work with professionals, pay close attention to potential construction costs associated with a piece of land, and save some of your investment for your home.