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How do I select a lot for my new home?
Source: Jim White, General Manager, Primrose Development LLC
Date: 7/26/2006

First decide on a general geographic location, and then focus on specific communities. Your personal preferences will lead you to a certain locale. Perhaps you want to live close to your workplace, or you plan to move near your grandchildren.

Familiarity is another motivator. You may feel tied to an area that includes your favorite places to shop, get a haircut, and dine.

Once you choose a general area, narrow your selection. Consider home prices, tax rates, school district, community amenities, access to transportation and the availability of commercial services. You want the neighborhood to be comfortable and your home to appreciate in value in case you resell.

Ask these questions when selecting the community for your new home:

Which utilities are available?
Are there common areas?
If so, where are they?
When will they be turned over to the association?
What is the annual operating expense for the homeowner’s association?
Is there a reserve fund? If so, what is its balance?
Where can you review the association articles and bylaws?
Who serves on the board of directors?
(The developer often serves as the board until the lots are sold.)
Is there pending litigation involving the community or association?
Is any school redistricting planned?
Are any sites affected by a floodway or floodplain?
Are there any legal drains? (Legal drains lead to special tax assessments.)

Once you choose a community, hone in on a home site. Price will be a factor: The better a site’s position in a community, the higher the price. Water frontage commands a premium price, as do wooded sites and golf course frontage.

Your personal preferences are another key. Your desire for a pool, a certain floor plan or directional orientation (i.e., north-south) will affect your choice. So will privacy, if you prefer a site that doesn’t back up to another residence.

When you find a prospective site, consult your builder to ensure that its buildable area will accommodate your floor plan. Evaluating this footprint is especially important for custom homes.

As you settle on a lot, look at the site’s specifications and requirements. The subdivision plat provides dimensions and easement information. Be sure your proposed house will meet the architectural standards of the community and that you understand all covenants, conditions and restrictions that affect the site.

Finally, address the terms of your purchase agreement. This contract includes the price of the site, any earnest money requirements, closing costs, the date and location of closing, and miscellaneous costs. It may also stipulate how soon construction must begin.

Remember, your sales professional, real estate developer, and builder are pleased to answer questions, so don’t hesitate to ask. 

Building for the future