Buying Land for a Custom Home? 11 Things You Must Consider First

The Dallas/Fort Worth real estate market has made it a great time to build a custom home--land prices are at an all-time low in many spectacular communities and some of the best custom builders in the area are hungry enough for business to lower costs without lowering quality. Before the market dropped in 2008, the price per square footage of a quality custom home at Lake Ridge on Joe Pool Lake could easily cost you $140-$160 or more. Now many of these same builders are priced closer to $125. Since the materials and contractors are costing less, the same quality of the pre-2008 custom build jobs is still there.

If you call a custom builder, they will tell you to get your land first. There is no sense in designing the home of your dreams until you see what you're working with as far as the land it's going to be sitting on. Many of my clients have never built a custom home and are unfamiliar with the process; this can lead to fears that may get in the way of making the right decisions, so I've put together a list of the most important considerations in your search for the perfect homesite and how the neighborhood and surrounding community should effect your choices:

Space—do you want a mass-grade subdivision with zero lot lines, homes built close to each other, and minimal lawn space on rectangular block layouts or more of a resort style community with larger acreage, varied property lines, and spacious yards built on winding block layouts?

Location—is it close enough to city amenities like food and shopping but far enough away to avoid traffic noise, congestion, or expanding commercial development? How close is the nearest fire station, hospital, or regular police patrols? How far is the nearest airport? How long is your commute to work?

Safety—what is the crime rate and is anything going to cause it to increase drastically over time? Do police regularly patrol and what is the response time? Is there a hospital or fire station nearby? What is the community like after dark? Is there an effective crime watch or community officer? Are there safe paths for you or your children to walk, jog, or bike?

Education—do you find the local school choices acceptable? What about options on private or college preparatory academies? What do current parents living there have to say?

Preservation—have the neighborhoods consistently preserved qualities like low crime rates, views, friendly neighbors, and the overall way of life? How much of the adjacent land might be developed in such a way as to disrupt views or create noise and congestion?

Restrictions—what is the minimum square footage home allowed? Can you choose your builder or do you have to go with one of their selections? Is there a timeline to build once you buy land? Are the HOA/POA fees reasonable and do the restrictions allow you the home and lifestyle you prefer there?

Diversity—is there diversity in young couples, families, empty nesters, retirees, and seniors? Will various cultures and races feel welcome? Do most of the homes look the same or is there a multitude of architecture represented?

Amenities—are there entertainment and leisure activities convenient to the community such as paved jogging/biking paths, sports fields, parks, swimming, horseback riding, golf, music and festivals?

Views & Terrain—is there anything distinctive about the landscape as you tour the community, such as elevation or views? Is there a good selection of gated and non-gated neighborhoods or lake views or mature hardwood trees? Would the terrain allow unique architecture for the area, such as walk-out basements or infinity pools? Do wooden privacy fences clutter too much of the view?

People—what are the people like overall? Is there a friendly atmosphere where still wave at each other? Do neighbors diligently pay attention to suspicious activity and respond? Does there seem to be an attitude of respect and cleanliness among residents or a sense of pride to live there?

Value—is the property a good value given the views and community? Will it likely gain high equity over time? How much would a custom home cost per square foot on that particular property? Are the HOA/POA fees and property taxes worthwhile? Do other qualities of the community, like those mentioned in this list, justify spending more to live there than somewhere else?

These are all important elements of your decision, but I would also add that you should qualify the credibility of your information as you do your research. For instance, if you speak to a builder who doesn't usually build in the community you are asking about, that builder may give you false information in order to lure you to a community where he gets an incentive to build at (whether it's an official incentive or not). Talk to builders who build there regularly, then get referrals of residents from them.

Finding the homesite to build your dream home should be an exciting experience and your ultimate decision should support your instincts on where you most see yourself living the life you imagine.