The Ultimate Lot Evaluation Checklist
How does Atmos evaluate a lot?
Finding a buildable lot for your preferred floor plan can be more complicated than it seems at first glance. While it may look like finding a lot should be as easy as narrowing down your location and choosing a lot in your price range, there are various nuanced factors at play. In order to evaluate what size of home footprint will fit on a lot — and whether a lot can be built on at all — professionals must drill down on a long list of details to get the full picture. We talked with Tracy Delgado, Senior Manager of Land Acquisition at Atmos, to compile a list of the most important details for lot evaluation.
Client Preferences
Geography
One of the first criteria for narrowing down a lot search is geography or location. This is entirely up to the client, and it can be helpful to look at lots in the most-preferred area as well as any other potential compromises. For example, finding a lot within Chapel Hill may be challenging at certain price points, but having other potential locations like Durham or Hillsborough on the list can help in finding more potential targets.
Price Point
Price point can also help to quickly narrow down a lot search. It’s helpful to have a target price as well as guidance on how much wiggle room there is, i.e. $150,000 plus or minus 20%, depending on how ready the lot is. It’s important to note that not all lots will come out the same in terms of additional costs, so a lot that costs more up-front but doesn’t need additional clearing or a septic system installed might end up actually being cheaper than a lot that appears more affordable in the listing.
Size, Shape, and Zoning
One of the most obvious deciding factors when evaluating a lot is size. Often, clients have already pre-selected their desired floorplan or narrowed down their preferences to a few options. Ensuring that the lot search only includes lots that are large enough to fit the desired floor plan is crucial.
It’s important to keep in mind that this isn’t only about sheer square footage. The shape of the lot makes a difference as well. Lots can be very narrow, making it difficult to fit a selected footprint on the shape even if the total square footage seems to align. Floor plan features like side-entry garages, for example, can raise issues since they require a wider lot.
In addition to the overall size and shape of the lot, it’s important to take zoning into account. Some zoning rules, such as required setbacks, can drastically change the actual buildable square footage of a lot. Every district will have different zoning considerations. For example, some areas may require more road frontage than others. Evaluating these details in advance will allow clients to accurately narrow down their lot search.
Neighborhood Feel
Aside from the quantitative aspects like price and square footage, an equally important part of the evaluation process is determining what sort of neighborhood feel a client is hoping for. Do they want to be in a true neighborhood? Do they want to be part of an HOA? Do they want the whole neighborhood to be newer construction?
Each of these aspects require input from the client so that Atmos can efficiently assist with finding an ideal lot that matches their needs and preferences.
Lot Details
In addition to the needs and preferences of the client, Atmos professionals also take the following aspects into account in order to thoroughly evaluate a lot.
Topography and Slope
One often-overlooked detail when evaluating a lot is topography. The slope of a lot will play a large role in determining what type of home can be built there and whether it will need to use a slab, basement, or crawlspace foundation. Atmos also evaluates whether the lot slopes front to back or side to side, and whether additional grading costs will come into play.
Often, clients may browse lots and see that one is listed for $100,000 less than other seemingly comparable ones. Without a thorough understanding of these logistics, it’s easy to assume that purchasing that cheaper lot could be a great investment. However, upon considering the foundation constraints and the potential grading costs, there’s often no money saved in the end.
Clearing
If a lot is full of trees or other natural items, it will likely need to be cleared, meaning the client will need to pay for the service of clearing that land.
Public Utilities and Sewer
One of the less glamorous steps to evaluating a lot? Determining the details of the public utilities and sewer system. Some lots have public sewer, which is the easiest to build on. However, other lots don’t have the public sewer option and will need to have a septic study done. If the septic study comes back saying that you can’t have a septic system on that lot, this often deems a lot unsuitable for residential building.
Otherwise, the lot may be approved for a septic system supporting a three-bedroom home, for example. If the client has a larger floor plan picked out, that would also eliminate that lot. Some lots will require an upgrade and incur additional costs to get a conventional system or an alternative drip distribution system, which can greatly vary in pricing.
Covenants and Deed Restrictions
Some lots have covenants or deed restrictions that restrict what can be built there. For example, some covenants might specify that any home built on the lot needs to be all brick, whereas a client wants to build with fiber cement. Looking into these details before purchasing a lot is crucial to ensure that the home the client wants to build will be possible in that neighborhood and on that lot.
Wetland Impacts
Wetland impacts and water considerations can reduce the buildable area on some lots. For example, if a lake or a stream runs through or near a lot, the required stream buffer can drastically reduce the possible footprint size for floor plans built on that lot.
With so many moving parts involved in finding the perfect lot for a selected floor plan, it’s crucial to have the right team on your side. Atmos is here to help clients find and thoroughly evaluate lots in order to find the right match. Get started building the home of your dreams with Atmos today!
