Things you need to know BEFORE buying land.

Henderson Home Builders • 17 November 2020

Land…. Dirt… Acreage. The desire to build a home on an undeveloped piece of land can be incredibly enticing. Perhaps you have searched for your ‘dream home’ and came up empty-handed. The idea of building a custom home on YOUR piece of land may seem like a great idea. You’ll have control over the design, architect, builder, and every subsequent design/build decision. 

A view of a mountain range through a forest with trees in the foreground.

Financing  Land loans are considered riskier investments than homes and if you require financing, you may need to put a substantial percentage down on the purchase, and usually at a higher interest rate than a typical home mortgage. Work with a qualified, knowledgable, lender, preferably local to the area. Loan terms can vary widely between lenders on a land purchase, so you may want to talk to a few lenders so you can compare terms and rates. Be sure to ask the lender about the timing of your potential build so you can look at a combined land/construction loan.


Water quality. Be aware of the possibility of groundwater contamination, especially in mountain towns with heritage of mining. While this will likely not be an issue, it would be wise to investigate the possibility.


Soils. A building permit is generally conditioned on a soils test by a soil engineer. Soil types (including wetland areas), the slope of the building site, and other factors (e.g., areas susceptible to flooding) may require additional design considerations. And there are parcels which may be deemed unbuildable due to the possibility that the underlying concerns can simply not be mitigated. A good soils engineer will be able to weigh in on a possible septic design (if not able to hook into a municipal waste system), drainage issues, possible foundation design, and the potential for additional site remediation. 


Survey A new survey is critical when considering a land purchase. A survey may turn up issues that are once again not visible to the naked eye.


HOA Covenants When buying land in a subdivision in which there is a Homeowner’s Association (HOA) it is critical to read through all the governing documents.


Access Make sure the property is accessible. In most cases, a legal parcel in Colorado cannot be denied accessibility, but it may require negotiations of an easement with one more more bordering landowners, or at worst, if the landowner(s) are unwilling, you may need to sue for access. 

by Sasha Henderson 16 September 2025
Every city or town you drive through seems to have orange cones lining the road. Construction . Whether it’s new roads to optimize traffic flow or new home development that squeezes as many homes they can on a few acres of land to create the next ‘up and coming’ neighborhood, it’s happening all around us. In a state that’s experiencing ever-evolving growth, purchasing a new home serves as not only an exciting milestone for your family, but as an opportunity to amplify your wealth. Beyond that, purchasing a custom home built from the ground up with a trusted developer is a move that could put you ahead in the long run. In this blog, we’ll talk through what to expect in the custom home building process , map out timelines, and point you in the right direction as you dial in on how to move forward. By the end, you’ll know how to plan, budget and choose the right builder to make your dream home a reality. Understanding the Custom Home Process in Colorado It all starts with the land. Ideally, you’ll have a team behind you that’s asking you the right questions to identify the need for you and your family. With that information, your realtor and developer team will research the best lots available in the distinct areas of preference until you find the right land. The average acre price statewide across Colorado is between $11,000 and $12,000. With that said, this number can be misleading due to the fact that there are certain areas that will be much more, and others that will be much less. Once the land has been secured. You move onto the design process. When building a custom home, it is important to have the right team in place , especially when it comes to this piece of the puzzle. Designing the layout, understanding the type of rocks and clay that make up the land beneath the home, and even finalizing the architectural elements of the home to make sure everything is sound is not something you should trust to just anyone. Ideally, you will have a collaborative team that walks you through this entire design process, providing guidance and solutions for your family’s unique needs along the way. Once the design has been agreed upon, you move to the permitting and construction process. Having a professional team pull the permits for you relieves you of all the headaches that come with city and town communications. That also ensures that nothing is missed, and when the home is completed, every piece has been accounted for and approved by the city you are building in. As construction begin and the excavators break ground, your construction team provided by your developer will step in to take the reins. This is the part tat you want to ensure you vet properly when finding the right developer to work with. Many developers hire out a rotating slew of contractors, putting the consistency of their work in question. The last thing you want is a contractor who offers subpar work working on your forever home. Make sure to ask your developer how long they have been working with their contractors, and ask to see new homes that they have recently built with those specific contractors to ensure they are the right fit. This entire process takes 6 to 9 months If you are considering a custom home, it’s important to understand that to make it what you truly wish for, you must allow enough time for design and construction.
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