Congratulations! You're thinking of building a new home! But before you jump into hiring sub-contractors and biting your nails, you're best advised to do some home work to select the best site. Not only will you be convinced that it's the best location for your new home, but you'll also know how geographically sound the site is and what to expect after the home is constructed.

When evaluating home sites, you'll be considering things like location, personal tastes, as well as price. And if it's been a while since you've built your own home (or you're a novice at it), you'll find that building lots are becoming more and more scarce. This is due in part to developers and builders (often large building companies) purchasing substantial blocks of land to develop. But don't get discouraged. Use contrary thinking to search for available parcels on the fringe of large developments (“hold-out” sellers who might now have changed their mind!) and/or approach the developers in an area you like to purchase one lot from their holdings.

Properties you find should not only look good, but drain well. This means that the home shouldn't be placed in a low spot on the lot or at the bottom of a hill where runoff is likely to head. It's interesting to note that ground water damage to a home is NOT covered under most standard home insurance policies. Only flood insurance covers this type of risk---and at a very premium cost!

Be sure to check with both the county assessor's office as well as a local title company to find out where easements lie on the property. Too many easements (such as for power, telephone, or high-voltage poles) can limit the amount of usable land available for building the house. And don't forget to find out how much of a set-back from the street or road is required by the building municipality (county or city.) There could also be a similar side-lot and rear-lot requirement so that homes built in the area will be an equal minimum distance away from both sides of the lot as well as from the rear lot line.

It helps to have a finalized floor plan before choosing a lot. The heavily treed lot you're considering is beautiful; but should you later decide that your dream home is a tri-level, your view may be blocked and trees might need to be destroyed. In reality, the lot you've chosen and the home style you require may not mesh. By choosing the lot to fit the home style, you're less likely to encounter this problem.

Here's where knowledgeable architects and/or construction consultants come into the picture. Even if you have decided to be a “lone wolf” in building your own home, don't scrimp on getting expert advice up front about how the floor plan will fit on the lot, whether or not the soil is stable, as well as an outside expert source of answers to problems that crop up during the construction process. (And believe me, troubles can arise!) The construction consultant you use is likely to become an invaluable player on your team---one who's available for consultation, one who knows other players in the construction industry to help you out of tough fixes you may find yourself in. Consultants are often paid using an hourly fee structure, or a flat fee payment. Whichever method of payment you choose, it's good to set a fee limit cap (at least in your mind) so you can plug this figure into your overall construction budget.

Follow these guidelines when making site decisions for your new castle and you should find your home investment on solid and profitable ground.

Published: May 1, 2000

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Julie Garton-Good, DREI “The Frugal HomeOwner™” As a syndicated newspaper columnist, author and international speaker, Julie Garton-Good DREI, C-CREC™, is called “America’s Home Affordability Expert”, addressing more than 25,000 persons annually on topics of real estate industry trends and home affordability. She is the author of five real estate books and is the sole two-time recipient of the international "Real Estate Educator of the Year" award from the Real Estate Educators Association. In 1997, The National Association of Realtors® nominated Julie as one of the fifty most influential people in the real estate industry. She shared the list with only three other women.