Buying Land To Build A Home On: Zoning, Utilities And Other Must-Knows

Last Updated: February 17, 2026 by Michael Kahn. Published: February 17, 2026.

Buying your own plot of land and building a home on it is a big, exciting move. But unlike buying an existing house, purchasing undeveloped land comes with extra layers of complexity: zoning rules, utility access, surveys, soil and more. Skip the homework and your dream lot could quickly become a money pit.

In this guide, we’ll walk you through all the necessary considerations when shopping for a plot of land to build on. 

Find a location suitable for your lifestyle

Before you start viewing any pieces of land, you need to step back and think about your day-to-day life. How long are you willing to commute? Do you want a home nestled in the quiet countryside or would you like to be close to shops, schools and healthcare services? Some people may enjoy the remote life and may not have much need to travel around, whereas others may feel they need to be close to civilization for the sake of work, kids or socialising. 

There are other things to consider too such as noise, light pollution and future developments. You may not mind putting up with disturbances like traffic or construction if you’re coming from a chaotic city, however those used to peace and quiet may find it a nightmare.

Consider access to roads and utility lines

A lot can look perfect on paper, but can become very expensive once you realize what it takes to reach it and service it. 

Start by checking whether the property has legal and physical access via a public road or easement. Some plots of land are landlocked – meaning that you cannot access them by car without getting permission to build a road on someone else’s land (which won’t be easy). 

When it comes to utilities, check that there are nearby power lines that you can easily link up to, or consider an off-grid solar system. If you’re unable to connect to mains plumbing for water access and wastewater removal, you might have to consider drilling a well and building a septic tank. All of this can cost thousands of dollars to set up – looking for plots of land that already have utility connections from a previous development could save you a lot of money. 

Look into zoning and building restrictions

Zoning determines what you can legally do with your land. You need to first make sure that your chosen plot is classed as ‘residential’. Then look into things like setback requirements (how far structures must be from the boundaries) and height limits. 

In some cases, there may be restrictions when it comes to removing certain trees. Some areas may even have building design restrictions in place and you may have to get permission for a certain style of building. A home builder will usually be able to carry out inspections and permit applications on your behalf, helping you to make sure your vision is feasible.

Verify plot boundaries with a survey

The boundaries of your piece of land may not always be obvious. Don’t assume that fences and hedges are the borders – it’s possible that the boundary may fall short or extend beyond this. There may also be cases where a path running through your plot of land is technically owned by someone else.

An official land survey will be able to clear things up and prevent any future land disputes. Such surveys are often necessary when applying for a land loan, however you should still get them done if you’re buying with cash. 

Factor in the soil quality and topography

Soil conditions are often overlooked but are hugely important in determining what kind of home you can build on the land. Soft soils like clay and peat are notoriously hard to build upon – you’ll need to invest in special (expensive) foundations and there will be limits as to how heavy the building can be. Run a soil test to get an idea as to what type of soil you will be working with. A perc test will also be necessary if you plan to install a septic system. 

Topography can be important to consider too. This is the slope and shape of the land and it can impact things like drainage, as well determining whether you need to look into excavation/elevation solutions. Sometimes uneven land can be a chance to get creative with a home’s design, however it may ultimately cost you more. 

Be wary of local natural disasters

Don’t forget to look into the risk of local natural disasters. This can include flooding, earthquakes, wildfires, landslides and hurricanes. While it’s possible to still build properties in high-risk areas, you will need to design them to withstand potential disasters and you may have to deal with higher insurance rates. Getting a self-build loan may even be harder if there’s a high risk of damage to any building on the land.

The best way to determine whether disasters are likely is to talk to neighbors and local officials. Sometimes a property near a river or lake might be deemed high-risk, but neighbors may tell you that they’ve never experienced a problem.

Assess your budget and explore financing options

Finally, you need to consider the money side of things. Plots of land can often cost many thousands of dollars and there will be extra costs you need to budget for on top of this including site prep, permits and surveys – all before you think about the cost of constructing your home. Make sure that you can afford all of these costs.

It’s likely you will need to take out a land loan. These are similar to a mortgage, but often require a larger down payment and can carry higher interest rates. You may then need to get a construction loan to cover the cost of building your home. All-in-one land-and-construction loans do exist and home builder companies may be able to help you apply for these, while also helping to provide an accurate bill of all the costs to give to the lender.