Amid the strong residential construction market, developers are struggling to keep pace with demand for developed properties. But some owners aren’t waiting for new batches to come online. Eager to build their dream home, they are considering bypassing traditional residential development and building on larger parcels of undeveloped land in rural or semi-rural locations.
In the simplest sense, developed land has been fully prepared for housing construction, while undeveloped land has not; each has advantages and disadvantages. If you’re considering building your home on undeveloped land, be sure to consider additional labor and expenses.
Are we there yet?
One of the most important things a developer does with virgin land is to bring roads onto the site and connect those roads to the public right-of-way. The lots are generally located adjacent to the new road and have direct access to it. If the subdivision remains private, the roads will be maintained by the owners, but they are often deeded to the city and maintained by the municipal services department.
Vehicular access to undeveloped land may be more difficult, although seclusion may be one of your primary goals when choosing a rural location. You’ll almost certainly spend a lot more to build an access road back to the site (I remember several “drives” that are over 1/3 mile long) and you won’t have city snowplows to clear it for you.
Bureaucracy and Green Paper
Buying a lot in a subdivision means buying additional levels of government regulation, including building departments and homeowners associations. Both groups will have input on the size, location, layout, types of exterior finishes, and upkeep of your home. Municipal building departments generally hold builders to a higher standard of construction quality than rural departments, a definite benefit to the owner, but that can also mean higher construction costs. Subdivisions also often have minimum house size requirements, so your house could even end up being bigger than you want.
In a rural property you will have much more freedom to decide how your house looks, what it is made of and how it is distributed on the land. And with that design freedom comes greater control over construction costs. Because the options are so much less limited, undeveloped land is where the most truly unique custom home designs are built.
power to the people
Developing a lot in a new subdivision typically includes bringing all utilities to the site, where the new home easily connects to them. Electricity, gas, water and sanitary sewer services are available at the edge of the property, ready to be used.
The undeveloped property will not have on-site water and sewer faucets. In fact, there may not be any utilities anywhere nearby. Building on undeveloped land usually means providing your own private septic system and water well; install a propane storage tank for gas appliances; and bring in power lines from a distance, perhaps a very long distance.
Can you dig it?
When a subdivision is ready for construction, the developer’s engineers have tested the soil and graded the land for proper drainage. You will have access to information about the possibility that subsurface conditions could affect your construction plans and, in many cases, the developer will assume some responsibility for the suitability of the site for construction.
If you want the same information on your rural property, you will have to order and pay for it yourself. Your county Extension Service can provide some of this information, but it may not be current or specific to your site. If you discover poor soil or underground rock in the area of your building, you will have no other avenue of repair than your own pocket.
More than one type of value
A home in a subdivision may have a temporary price advantage over a “detached” home, since its value will be tied to the sales prices of other homes in the area. If you value predictable price appreciation, closest neighbors, and want a less “hands on” involvement in the creation of your home, you’ll probably find your dream home in a development. Most American homebuyers do just that.
Building on undeveloped land will require more from you, your Architect, and your builder. But if you’re willing to take the risks of undeveloped land; If you are interested in a truly custom home design; and if you want to get more involved in creating your home, you can find your piece of paradise somewhere a little further out of town.
