What to Know Before Buying Land for a Custom Home
Buying land may seem like a straightforward first step toward building your dream home—but the reality is far more complex. There’s a lot that can go wrong if you buy a property without knowing what it will take to build on it.
This guide walks you through everything you need to know about buying land for a custom home so you can make confident, informed decisions from day one.
Start With the End in Mind
Before you fall in love with a piece of land, you need to be clear on your end goal. What kind of home do you want to build? How big? What style? What features matter most?
Every decision you make after buying will need to work with the land you choose. That’s why it’s essential to reverse-engineer your land purchase based on the type of home you want—not the other way around.
10 Questions to Ask Before You Buy Land
- Is the lot buildable as-is, or does it require major prep?
- What’s the slope, soil condition, and drainage like?
- Are utilities available, or will you need to install septic, well, or electric poles?
- What are the zoning laws, setbacks, and HOA requirements?
- Are there any easements, floodplains, or conservation restrictions?
- How accessible is the lot by road or driveway?
- Can your desired floor plan fit within the buildable area?
- Will your view, sunlight, and privacy be what you expect?
- How much will site prep, excavation, and permitting cost?
- Has the land been surveyed, or will you need a boundary study?
For a deeper list, see 10 Questions to Ask Before You Start a Custom Home Build.
Work With a Builder Before You Buy
The biggest mistake people make? Buying land without consulting a builder first. You might fall in love with a 5-acre property—only to discover later that it’s too sloped, too rocky, or too costly to run utilities.
At Hewn Custom Homes, we offer pre-purchase lot evaluations to help you:
- Identify hidden costs or construction challenges
- Understand whether your desired home fits the lot
- Estimate realistic site prep and development costs
- Avoid zoning, permit, or access issues
We covered more of this process in How to Find the Perfect Lot for Your Dream Home in Middle Tennessee.
Understand What “Improved” vs. “Raw” Land Means
Improved land usually has roads, water, sewer, electric, and zoning approvals in place. Raw land may have none of those—and puts the burden of development entirely on you.
If you’re trying to compare different paths, read Should I Build in a Community or On My Own Land?.
Financing Land Can Be Tricky
Land loans are harder to secure than mortgages, and typically come with higher interest rates, shorter terms, and stricter credit requirements. You may also need a larger down payment (20–50%) and face limitations depending on whether you plan to build soon or hold long-term.
Talk to your lender—and your builder—before you start shopping. There may be better options, including construction-to-permanent loans that roll land and home financing into one streamlined package.
Permitting, Engineering, and Surveys
Once you buy land, there’s a checklist of work that may be required before construction can begin:
- Boundary and topographic surveys
- Soil testing and perc tests for septic
- Geotechnical reports for foundation engineering
- Driveway and utility easements
- Water management plans or retention basins
Buying land that looks simple doesn’t mean you’ll avoid these steps. That’s why pre-buying diligence is essential.
Want an Easier Option?
If the idea of navigating all this alone feels overwhelming, you’re not alone. That’s why many buyers prefer a full-service builder like Hewn. We offer:
- Land procurement assistance
- Builder-led feasibility analysis
- Site prep coordination and permitting management
- Fully custom or semi-custom home design
We take care of the details—so you can focus on the dream.
Before You Buy Land, Talk to Hewn
Even experienced buyers can get tripped up when buying land. Our advice? Don’t go it alone. Bring in your builder early, and you’ll save time, money, and stress down the road.
Contact Hewn today to schedule a land consultation before you buy.