What Should I Ask Before Buying a Lot in Utah?
The questions to ask split into two very different scenarios, depending on how you’re buying the lot.
If you’re buying a lot from a builder — especially a large tract builder — most of the groundwork is already done. Utilities are typically stubbed, perk tests are already done, and it’s ready to build. Your main job is checking what’s going to be built around your lot, not the lot itself. Micah has a real cautionary example: a medium-size, high-end development by Century Homes in Elk Ridge, Utah, sat next to an empty lot between the development and a major road. About a year ago, that empty lot was sold to an investor who got city approval for storage units. Now roughly ten homes that backed to that lot — homes purchased at $800,000 and up — back onto a mini-storage construction site, with real potential to hurt their property value. The lesson: understand the current zoning around a lot, and what it could become, not just what’s there today.
If you’re buying raw land to bring in your own custom or semi-custom builder, there’s a lot more work. Check the slope of the property for sewer connection and flow. Check the proximity of utilities — power, gas lines, sewer. You’ll likely need a perk test for drainage and a soil test for expansion. If public sewer is available with proper flow, that’s good; if not, you’ll need perk tests plus a trip to the county health department for septic permits. If public water is available, that’s good; if not, you’ll need to find water shares and check the cost of drilling a well, including whether nearby wells have been drilled successfully. Check for an HOA and any architectural review guidelines you’d have to follow when building, and check whether there’s a timeline requirement — some purchases require you to start construction within a certain window. Get a lot line survey to confirm corners and rule out any encroachment from neighbors. Check your financing options — some loans cover the lot purchase tied into the construction loan, while otherwise you’ll buy the lot with 20% down and get a separate construction loan, with that 20% often counting toward the construction loan’s own down payment. And check any animal or secondary-building restrictions — sheds, pool houses, RV storage — before you assume you can add them later.
Full breakdown: What Is a Lot Premium in Utah New Construction, and Is It Worth Paying? · New Construction in Utah