The decision to build on your land opens endless possibilities for creating a custom home that perfectly matches your vision. While transforming raw land into a tailor-made sanctuary requires careful planning, the people at Jamestown Estate Homes say that many find that the freedom to build exactly as they wish outweighs the complexities. While clearing land and installing utilities represent major investments, broader flexibility in design and timeline can yield savings, too. Strategic planning makes all the difference.
Upfront Land Purchase and Preparation Costs
Before even consulting architects, acquiring vacant property itself requires major capital. Budget for the base price, closing fees, appraisals, taxes and more. Then factor in land prep: survey fees, permitting, grading for proper drainage, clearing trees and infrastructure if needed. Just readying raw land for building represents a substantial expense that turnkey homes avoid.
Nonetheless, purchased land is a valuable long-term asset that typically accrues value over decades of ownership. Some costs are recouped eventually upon resale, whereas renting provides no equity. If the location is ideal, view land buying as an investment in future stability.
Utility Connection and Installation Expenses
Properties without existing structures also require establishing utilities: water access via well drilling or tying into municipal sources, electricity via grid or solar power, septic tanks or sewer connections. You’ll pay heightened installation and recurring service fees compared to moving into a home where utilities are present.
Though if you’re building a highly energy efficient or off-grid home, you may recoup expenses later through minimized utility usage. Installing renewables like solar power or sophisticated HVAC during construction is cheaper than retrofitting down the road.
Potential Savings from Competitive Bidding
A perk of building from scratch is the chance to implement competitive bidding for all contracting needs. Rather than being stuck with previous renovation choices or whatever systems a resale home includes, you can pit contractors against each other to incentivize best value propositions on all projects.
Send RFPs to multiple electricians outlining the exact scope required and select whoever returns the best fixed-price bid. Repeat for plumbers, roofers and all subs necessary to complete your dwelling. Just ensure all bidders are properly licensed and vetted first.
Ongoing Tax Savings Opportunities
Certain jurisdictions offer lasting tax perks for purchasing vacant land and constructing a primary residence from the ground up. States or counties may offer full or partial property tax exemptions for a set timeframe after completing new home construction. Other areas reduce tax assessments or appraisal rates if properties adhere to certain use classifications. Ask your real estate agent or tax assessor’s office about qualification specifics based on the land type, home style and zone where you plan to build.
No Compromising Based on Resale Market Trends
When constructing new, you gain complete design control without compromising preferences because of resale market unpredictability down the road. You can select finishes based on personal style, not selling to future buyers. Your home needn’t be generically trendy if customization suits your family’s lifestyle and priorities better. Building on land of your choosing lets you ignore resale considerations altogether.
Conclusion
At surface level, building a new custom home requires major upfront investment in land purchase and development those buying move-in ready homes skip. However, constructing your own tailor-made residence from the studs up yields creative freedom and potential cost efficiencies over time that closed properties just don’t offer. If you secure financing and plan strategically, personalizing every detail based on your exact wish list, budget and functional needs is truly priceless and makes building on land of your choosing wholly worthwhile. Soon enough, you’ll have the keys to your perfect rural retreat.