Choosing the Best Lot to Build Your Custom Home

  • By Jeremy Thompson
  • 15 Sep, 2016
Choosing the best lot to build your custom house on plays a major role in the enjoyment of your home, as well as affects what the lot and house costs you both upfront and over the long term. Here’s a list of what to consider when selecting a lot. The Commute Unless you work at home, you […] The post Choosing the Best Lot to Build Your Custom Home appeared first on J. Thompson Builders.
Here’s a list of what to consider when selecting a lot.

The Commute

Unless you work at home, you want to factor in the commute time to work. When testing out the commute, drive during the week at times you’ll normally drive to work, but also drive to stores you frequently visit as well as other places you drive often such as to your child’s school or to church.

The Community

The place you choose to live is where you will spend the majority of your time. It should be a community you want to support. Consider the quality of the school system particularly if you plan to or already have children. It’s also pertinent to consider the school system even if you don’t as school reputation affects resale value.

Resale Value

Speaking of resale value, place this on the list of important considerations. It’s not only the quality of the school system that affects resale value, but also how far the land is away from major cities, shopping and attractions, and if the city has quality parks and other recreational facilities. If you live further out in the country, the land may cost less but have a lower resale value and you may face difficulty selling it.

Future Development

Consider what areas nearby are slotted for future commercial and residential development. The growth outlook may appeal to you, or you may be dissuaded by too much commercial growth infringing on your lifestyle. To find out more information about the plan for areas of undeveloped land near your lot, contact your local planning and zoning departments, where you can also find out about any upcoming meetings related to development.

Real Estate Taxes

Research real estate taxes, including any potential increases expected, particularly relevant if you are building your house in a fast-growing area with the need to build new schools.

Traffic

Lots located in more secluded areas, or on a cul-de-sac have less traffic and noise, but lots located on corners offer easier, quicker access on a daily basis.

Landscaping and Snow Removal

When it comes to the debate between corner lot vs interior lot, snow removal and landscaping are considerations. With a corner lot you have two sides which means more yard maintenance and snow removal, if there are sidewalks on both the front and side. Yet with a cul-de-sac lot, the front yard may be narrow, requiring the house to be set back farther so you have a long driveway that also requires more snow removal, and you lose much of your backyard and have to invest more money in landscaping the front yard since it’s more visible. You also lose the option to install a pool or other structure in the backyard if your space is more limited in the back of the house.

Your House Plan

A critical factor in deciding on a lot is if the house you plan to build fits within the buildable area of the lot. If the land has rock outcroppings or utility easements, it affects the buildable area. Your builder or the developer can help you determine the buildable area.

The Sun

Most of a house’s windows sit at the back of the house where most of the living spaces are – the kitchen, living room, etc. – and this is where you want sunlight to come in. If the windows are on the south side of the house, you’ll enjoy sunlight for most of the day. But if they are on the north side, you won’t get any direct sunlight at all. And if those windows face west, the hot afternoon sun will pour in and make the house extra hot and likely fade your furniture and carpeting. Also consider that the orientation of the house along with proper positioning of doors and windows maximizes the use of the sun’s heat, and helps you to save on energy bills.

Slope

A house placed on a slope costs more to build than one placed on flat land, and it may limit the amount of backyard space. However, a sloping lot is ideal for a walk-out basement. Analyze the pros and cons the sloped lot has in terms of your design, and determine if you can build on the lot without incurring a much greater expense.

Soil

Soil type can greatly affect the construction cost. The varying types of soils drain differently and retain water in different ways, and this affects how they support a building. You can have the soil analyzed by the local county extension service and the developer or builder should be able to tell you how the soil type has impacted other construction projects nearby.

Developed vs Undeveloped

If you purchase a lot outside of a developed area, you may have to pay to run electricity, phone lines and water to the house. You may even have to drill a well or install a septic system. Purchasing a lot in a developed area that has the utilities already installed will save you money.

Zoning Ordinances

Check with the local government about zoning ordinances that may permit you from building on the land, or that may restrict you from building the house you want. A subdivision also may have restrictions on what type of home you can build on their lots. Additionally, consider the other rules the subdivision imposes (e.g. where you can park your vehicle, if you can have a pool, etc.) in selecting your lot.
All lots have their pros and cons, but using these considerations can help you to select the right lot for your custom home needs.

For a look at home plans for a range of lots, visit our Custom Home Gallery

J. Thompson Builders Blog

By 7052540976 15 Nov, 2017
Some of these considerations may not be in the forefront of your mind, but there is a long list of aspects you need to consider when building a new home. These should help to get you started thinking about some of the most important pieces of the home building process.
By 7052540976 15 Oct, 2017
This home is being built with our client’s specific wants and needs in mind. The homeowner
requested a single family home with a modern contemporary house design. Previously, he lived
in a townhome and desired a more private, spacious residence. A main floor living with a large
space to entertain and big volume ceilings were a must on the client’s list.

The client decided building as opposed to finding a pre-existing home was a better solution for
him because he wants something specific to his needs. He already had the perfect location in
mind and it was time for him to own his dream home.

The area is ideal for this client because it allows him to live in close proximity to his hobbies and
interests and it also allows him the ability to walk to nearby restaurants or bike to the
surrounding shops. This homeowner will be close to everything. He truly loves the location!
The design concept picked is pictured below. In sticking with a contemporary influence, the
design has clean, simple lines that will result in an extraordinary modern home. We combined
elements of residential and commercial materials and design to bring our client’s unique requests to life.
By 7052540976 15 Sep, 2017

You decide that you are ready to build a custom home for you and your family. Now it is time to figure out how to finance your dreams!

Let’s start with the basics. As with any loan process, do your research. Talk to several mortgage companies that specialize or have a strong understanding/history of working with construction loans. Ask questions and voice your concerns. Companies of course want your business, but they also want to make sure they are a good fit for you and what you are wanting to accomplish. Reviews and referrals are strongly regarded these days. They want to make sure you have the best experience possible.

There are several main differences between a construction loan and a regular existing home loan. An individual construction loan may require a longer credit history  or a higher credit score as well as more money down and along the way. It is more of a process, but it is most certainly worth it. With the right builder, the more involved process becomes a piece of cake; but, that is an article for another time.

Home loans can have a 30 year term whereas a construction loan typically has a max of 1 year. “The rates on this type of loan are higher than rates on permanent mortgage loans. To gain approval, the lender will need to see a construction timetable, detailed plans and a realistic budget, sometimes called the “story” behind the loan,” as reported by  bankrate . While your home is being built, it is typical to make interest-only payments. 

If you are thinking, “I don’t have enough money to pay off a newly built home in 1 year!” Don’t panic.

A popular option is the construction-to- permanent financing sometimes called “one-time close,” a “single close,” or an "all-in-one" loan. Upon completion of construction, the remaining loan balance is converted into a permanent mortgage with terms up to 30 years. Like most loans, “the rate and other terms of the permanent mortgage are set up-front when the entire loan package is closed” according to the  National Association of Home Builders .  Construction/permanent loans are offered by many different lenders, including banks and mortgage companies and are a great option for those of us wanting to finance their home purchase over an extended period of time.

Another option is a stand-alone construction loan. This type of loan can be beneficial if you currently own your home and want a smaller down payment option.   Read more about stand alone construction loans.

There are many different loan options. What makes sense for one person doesn’t make sense for everyone. Make sure you find the right product for you and your particular project. If you want to talk over some options, contact us! We would love to hear your ideas and figure out how we can build your dream home.

View our work , read our reviews on Houzz.com , and visit our Facebook page to get inspired!
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We’ve offered you lots of advice over the years about building a custom home. Here is a condensed version of some of the most important tips to follow. Get on the fast track to planning your new custom home! 7 Tips for Building a Custom Home Pay attention to your subdivision covenants. Yes, these are […] The post Building a Custom Home: 7 Quick Tips appeared first on J. Thompson Builders.
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By Jeremy Thompson 15 May, 2017
Building a new home is an exciting time, filled with anticipation and satisfaction as you watch your vision come to life. However, it can also be a little overwhelming when you’re unfamiliar with some of the technical terms. To help remedy this we’ve defined a few of the custom home building terms you may hear […] The post 5 Key Terms to Understand in Custom Home Building appeared first on J. Thompson Builders.
By Jeremy Thompson 01 May, 2017
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