Purchasing land and building a house is one of the most exciting—and honestly, sometimes overwhelming—parts of the custom home journey. It’s where your dreams start taking real shape, but it’s also where so many homeowners feel a little uncertain. What kind of land is actually best? How do you know what to look for? And how on earth do you prepare financially for all of it?
We’re sharing a glimpse into what we cover inside our Complete Homebuilding Guidebook—everything from land types and financing options to those small details that can dramatically impact your build. Whether you’re in those early dreaming stages or ready to actually take the next step, these insights will help you approach the whole process with real confidence.
Understanding the Types of Land
Before you can really begin purchasing land and building a house, it helps so much to understand what kind of property actually fits your goals. Not all lots are created equal, and the type of land you choose affects both your budget and your timeline in big ways.
Raw Land is completely untouched—no utilities, no road access, and often no grading at all. It’s less expensive upfront and comes with lower taxes, but developing it requires significant investment to make it build-ready.
Unimproved Land sits somewhere in the middle. It may have partial utility access or some cleared areas, but it still needs quite a bit of work before a home can be built.
Improved Land, on the other hand, is ready for construction. Utilities are already in place, the lot is leveled, and roads are accessible. It’s definitely the most expensive option, but also the most straightforward when it comes to starting your build.
Each option has its advantages. The key is really understanding how much time, money, and effort you’re prepared to invest before construction even begins.
What to Look for When Buying Land
When it comes to how to buy land and build a house, those small details make such a big difference. Beyond the beautiful view or perfect location, it’s essential to evaluate how the property actually functions.
Start with utilities. Does the lot have access to electricity, water, sewer, or internet? If not, you’ll need to consider what it will cost to connect them—or start planning for alternatives like wells, septic systems, or propane.
Next, take a close look at soil and topography. Flat land is often easier and less expensive to build on, while sloped lots may require additional foundation work or retaining walls. A soil test from a geotechnical engineer is absolutely worth every penny. Poor soil conditions can increase your construction costs significantly, and it’s so much better to know upfront.
Finally, make sure to review zoning and taxes carefully. Confirm that the property is zoned for residential use and that the size and style of your future home are actually allowed. Research nearby developments too, so you can anticipate how the area might grow or change in the coming years.
These are just a few highlights from the Lot Selection Checklist inside our Complete Homebuilding Guidebook, which walks homeowners through every single question to ask before purchasing.
Financial Planning and Land Loans
One of the biggest questions homeowners ask about building a custom home is how to actually handle financing. Land loans are different from traditional mortgages—they can carry higher interest rates and require larger down payments, especially for raw or unimproved properties.
If you’re exploring how to finance buying land and building a house, you have a few main options to consider.
Local bank or credit union loans are often the most flexible, since local lenders understand the area and its land values much better.
USDA loans can be ideal for eligible rural areas, often offering lower down payments and interest rates that really help.
Home equity loans are another route. If you already own a home, tapping into existing equity can be a really cost-effective way to purchase land.
Whichever route you take, it’s so important to account for all the related expenses—closing costs, permits, site prep, and utilities. Land ownership can come with hidden costs that add up quickly, so having a detailed budget is absolutely essential.
Inside the Complete Homebuilding Guidebook, we break down these financing options step-by-step, including what to expect when working with lenders and how to prepare financially for construction.
Location, Lifestyle, and Long-Term Value
When purchasing land and building a house, you really need to think beyond just the property lines. The right lot is more than acreage on paper—it’s about how the location fits your lifestyle and your future plans.
Ask yourself these questions:
- How close is the property to grocery stores, schools, and hospitals?
- Who maintains the roads and handles snow removal?
- Are there HOA guidelines or fees to consider?
- What future development is planned nearby?
These questions may seem minor at first, but they really shape how your home feels—and what it’s worth—for years to come. A scenic, remote property might sound absolutely ideal until you realize it lacks internet access or you’re an hour from the nearest store.
The process for buying land and building a house is really about balance. You’re trying to find a property that supports your lifestyle today and holds its value for the future.
Expert Tips for First-Time Land Buyers
Over the years, we’ve seen how the smallest decisions can honestly make the biggest difference. Here are a few lessons from our experience:
- Always review the soil report with your builder before closing on a property.
- Invest in a professional land survey to confirm boundaries and setbacks.
- Partner with a real estate agent who specializes in land sales.
- Plan your utilities early — extending power or water later can be costly.
- Think through your topography. If you want a walkout basement or outdoor living area, choose land that naturally allows for it.
Each of these steps can save you thousands in the long run and ensure your build starts off smoothly.
Why the Right Lot Matters
The land you choose really sets the tone for everything that follows. It impacts your budget, your timeline, and even the way your finished home feels when you finally walk through the door. Taking the time to research, plan, and prepare ensures your foundation—both literal and figurative—is strong.
If you’re preparing to begin your own custom home build process or exploring how to custom build a home, we created the Complete Homebuilding Guidebook to make it so much easier. It includes detailed checklists like our buying land to build a house checklist, financing tips, and builder-approved insights to help you move forward with real confidence. You can also download our Free Custom Home Building Checklist as a first step toward your dream home.
A Foundation for Something Timeless
Purchasing land and building a house is about so much more than just finding dirt to build on—it’s about envisioning the life you’ll create there. With thoughtful planning, patience, and the right guidance, the lot you choose becomes the foundation of something truly timeless.
At Wiersma Homes, we believe the best homes start long before construction begins—they start with understanding, intention, and care
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Welcome to The Cottage Journal - our corner of the internet where we share the heart behind Wiersma Homes. Here you'll find stories from the job sites, design ideas we're loving, behind-the-scenes decisions from our own builds, and the lessons we've learned helping families create homes that feel timeless and deeply personal. Whether you're dreaming, planning, or already building, we hope these notes inspire and equip you to create a home you love living in.
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