When you go to sign your contract to build a house, you will be choosing your location. Most first-time builders never run a check before they buy a lot. They find the one they like, write the offer, and figure out the maths after.
The lot ratio rule
The rule is very simple. In a standard market, the price of your lot should be 10 to 15% of what you’re going to sell the finished house for, anything more, and the deal is compressed before you even start. Most home builders never run this. They find a lot, fall in love, and write the offer to whatever the seller is asking.
How to measure the size of a lot
Measure the rectangle and square lights and multiply the width boundary by the lumen. To find the area of a triangle, simply multiply the height of the triangle by its base, then divide the result by two. Add up the area of each shape in order to find the total size of the property. Use these numbers to find the area of the light.
Building A Home On A New Lot
Common lot types
Your typical lot is your basic, everyday lot, so these are mostly flat lots. They’ll always have a slight slope for drainage. Beyond that, you look into walkout lots.
Walkout lots are going into a hill, so the back wall of your basement, you’ll be able to have doors and windows leading out to the backyard. The majority of walkouts usually end up in a pond, but onto parks, gardens, sometimes even onto roads.
Amenity lots are lots that back onto a pond, a park, a play structure, something of value to the neighborhood, typically with a chain link fence more open to the park.
High visibility is if you’re on a road, whether on the back or on the side, and on a corner lot, you’re allowed to have a lot more windows, a lot more natural light.
Types of premium lots
The premium lot is a special lot that is a little bit different from other lots in the section of the community in which you’re going to live. A premium lot may be found on a cul-de-sac. A cul-de-sac lot has only one way in and one way out.
Another type of premium lot is a part of your lot. There’s not much in terms of views; you may have something like a city view, or more popular in the suburbs, where the new construction is a waterfront type.
Waterfront-type homes in the area look more like local waterways or retention ponds that are built by the developer. Another type of lot where you may experience a lot premium is a gated community. There are several benefits to buying a home in a gated community. A few of those benefits are privacy, less traffic, and upkeep.
How the floor plan affects the lots
The developer is the one who ultimately determines where lights are built in the neighborhood. In many homes in the area, the developer determines the repetition pattern for floor plans in the neighborhood. You will find similar lot sizes grouped for several reasons. A few of those reasons are the uniformity of the neighborhood and to keep the property value.
Zero lot lines
There’s also what’s called a zero lot. Zero lots have gained a lot of popularity. What they’ve done is they’ve narrowed out your lot, so one side of your home will usually sit right on the property line, and you will have five feet between you and the neighbor. This is going to give you that easement on one side versus two, so you’re going to share a lot of line with your neighbor.
The thing with zero lots is that they’re a little bit smaller, still giving you some separation. They do have limitations, though you can’t have windows on the side of your homes now, but you can still have them on the front and back.
Plot plans
A legal plot plan is taking the building plot to the next level. Once you’ve determined your lot and your home, the plot plan is going to show you a bird’s-eye view of exactly how your home sits.
It’s going to give you an exact dimension to your backyard, your sides, the exact grading, and any easements. It will also show you if you have transformers, fire hydrants, or anything on the lot.
Frequently asked questions
What is a premium lot?
The premium lot is a special lot that is a little bit different from other lots in the section of the community in which you’re going to live
What are the benefits of a gated community?
A few of those benefits are privacy, less traffic, and upkeep
Why are similar lot sizes grouped together?
You will find similar lot sizes grouped together. You will find this for several reasons, a few of which are uniformity of the neighborhood and to keep the property value
What is the lot ratio rule?
In a standard market, the price of your lot should be 10 to 15% of what you’re going to sell the finished house for
Conclusion
Consider the size of the home that you’re building by square foot and compare that to homes that have similar square footage and similar lot sizes that you’re considering. That’s how you can determine how much of a lot to buy when building a home.
