Things To Consider When Buying Land for Building A Home



When you’re ready to build your dream home, you must consider all the factors that go into buying land for building. The location and budget of your future home are two key considerations, but other factors could also impact your decision. From zoning and taxes to planning and permits, here are some things to consider when purchasing land to build a home.


Location is an essential consideration for many reasons. You want your new home close to shopping, entertainment, and schools. If you work in a city or near a major highway, the location of the land you buy may not matter as much because you can commute to and from work most days. 

But suppose you’re working at a small company in the middle of nowhere and have no other options but public transportation or driving yourself. In that case, it’s probably more important that your house be located near your workplace.

You also need to consider how far away from friends and family members you’ll want your new house to be located. If they live nearby, this isn’t much of an issue. Otherwise, think about how far away from them the land should be before making any decisions about purchasing it for those reasons alone or else plan on spending tons of money on gas every month just so that everyone can visit each other.

The location also plays a vital role in economic growth. According to an article published in the ScienceDirect journal, location is key to urban economic development. While this may not be relevant for residential apartments, you can still make the land to generate income for you. 

For example, you can purchase land for sale spread across hundreds of acres and start an occupation there. You can buy property ranches and farms and start raising your livestock or farming.

Your Budget

You should know how much you can afford to spend on land, building materials, and taxes.

 – How much do you want to spend on land?
 – Will it be worth buying the smallest lot available in your area, or will you need to purchase more than one parcel for your house?
 – Do you have enough room for a garage and parking space for visitors?
 – Can your family afford new homes, or do they prefer older houses with character? Is there any history behind these older homes that makes them more attractive than newer ones?

When crafting the budget, you must also consider the potential returns on the land you purchase. If the returns are high, you can make your budget flexible and increase it by taking a mortgage. For example, according to Redfin, Tennessee house prices have increased 7.8% year-over-year in October 2022.

This means the returns are high, and you can probably stretch a little to buy land in Tennessee. You can look for land for sale in Tennessee – buy property acreage, ranches, farms, or anything else you want. This will prove to be an excellent investment as your land prices will grow in value over time.


Local or Federal governments can set zoning laws. The process of determining what can be built on a property is called zoning. Zoning determines what home you can build, how many people will live there, and what kind of activity can take place on the property.

Some examples of zoning restrictions include:

 – Restricting the number of unrelated individuals who can reside in one home
 – Denying permits for commercial activities that don’t comply with municipal codes
 – Setting minimum square footage requirements for structures

The zoning laws can be established by the governments considering several other Acts. For instance, a state may have a zoning law restricting industrialization in a particular area to prevent violation of the Clean Air Act and Clean Water Act.

Hence, you must buy land for sale that does not have zoning restrictions that can affect your vision of the property. For instance, if you want to build a residential home, buy a property that does not restrict its construction.

Plans and Permits

You need to know that building a home involves more than just the house itself. Many other things must be done before you can move in. For example, permits are required for plumbing, electrical wiring, and other infrastructures like roads and septic systems. Overall, the building permit can cost roughly around $1,424. However, the cost can vary widely based on various factors.

If you’re building a single-family home on your land, your local government can usually obtain these permits. But suppose you’re purchasing a property with the infrastructure built into it. In that case, permits will likely have been obtained by someone else already, and they might not be willing to give up their rights over those assets just because they no longer want them on their deed anymore.

Property Taxes

Property taxes are a part of owning property. They are usually a percentage of the market value of your home, and they vary depending on the county you live in. For example, if the tax rate is 0.70%, you will pay $700 if you own a house worth $100,000.

The tax rates vary from state to state. For example, the property tax rate for houses in Alabama is 0.4%, and that in Tennessee is 0.73%. On the other hand, tax rates in New Jersey and Illinois are 2.21% and 2.05%, respectively. Hence, it is wise to get land in a state with no high property tax.

You can purchase land for sale in Tennessee because the state has a low property value while the prices are increasing. This means that you will get better returns on your investment.


If you’re thinking about building a home on land you own or buying land to build a house, there are many things to consider. Consider everything mentioned in this article, from location to permits and from zoning to budget. We hope this article has helped with some of those considerations and given you some ideas for starting your search for the perfect property.

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