The Process Of Building On Vacant Land

Tammy Emineth
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Considering vacant land to build a property, house or commercial building on? This can be such an exciting process and something that many people dream of. There are a lot of steps involved in this process, which can make it feel daunting but if you walk through the process with the right agent and developer you can end up loving the process and the result. Whether it is your dream home or a home you plan to use as an investment, watching something build from the ground up can be satisfying.

The Process Of Building On Vacant Land

Buying vacant or raw land is extremely valuable. If you are interested in doing this then you want to educate yourself as much as you possibly can. You need to consider construction fundamentals, real estate financing, investing, and project management. Once you have found the land you want to build on, you need to follow some steps to ensure you have a successful project. This means you will want to hire reputable, licensed, contractors that you trust.


Before you start the process you want to understand what the return on your investment is. This means you take into account the cost of your project and then what you will make in return for what you invested when you decide to sell. The whole reason you want to develop any kind of real estate is to build wealth so you want to understand what all of the costs are to determine your potential profit so you can have a successful outcome.

Research Your Zoning

Zoning is what determines your land use. You need to know that the land you are purchasing allows you to build a house on it. Zoning laws impact the type of property that can be built on a piece of land and directly affects what you can do. This means that your land can be zoned to build single-family, multi-family, condominiums, commercial property, or a combination of any of these.

Decide Who Your Contractor Is

If you have purchased land and made sure it is zoned appropriately for your project you are now on the hunt for a contractor. A professional contractor will help you decide what home style will be best on your land as well as offer any warranties and the service plans they use. You want to make sure you take a look at any previous work a contractor has done and interview at least three companies.


Before anything can start you will need to secure financing. Financing options are depended on how you plan to use the property. You will need to get a construction loan with a reputable lender. The construction loan is what you use to build the house. A land loan is what you use to purchase the land. Construction loans are typically paid out in phases throughout the process as the build is checked upon.

Construction Begins

Once you have your contractor and your approved loan, you need your permit and you are ready to get started.  To get your permit you will have to submit several items to have the build apprised. After your entire build process is complete, you will want to perform a detailed walk-through alongside your contractor to make sure all of the finished touches are there and that everything was built according to the plan you agreed upon.

It always helps to have an expert guide you through this process. Whether it's the builders agent or your own, having someone on your side can make the process much easier and understandable.

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I am a former real estate agent turned content marketer. I love to write about real estate, blog about home improvement and optimize real estate and other business websites for our customers. SEO Tips, real estate advice and more.

Frenchtown, MT

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