Before Buying Land
Before Buying Land: Check For Hidden Costs
Before Buying Land: Check For Hidden Costs
Before Buying Land, the purchasing of land is an exciting step, whether you’re planning to build a home, start a business, or hold the property as an investment. But before signing any contract, it’s essential to check the “hidden” costs that go beyond the land price. Utilities and preparation expenses can dramatically affect your budget and the overall feasibility of the property.
1. Water Access and Cost – Before Buying Land
Public Water Connection: If municipal water is nearby, ask the utility provider for connection fees and whether lines need to be extended. These typically range from $1,500 to $15,000.
Well Installation: In rural areas, you may need to drill a well. Costs vary depending on depth and terrain, often running $5,000 to $15,000, though deep wells can exceed $20,000.
Water Testing: Even if a well exists, testing for safety and flow is crucial. Expect $150 to $500 for reliable testing.
2. Power Source Availability – Before Buying Land
Electric Grid Access: Contact the utility company for the nearest hookup point. Extending power lines can be expensive—around $1,000 to $30,000, with each utility pole averaging $10,000.
Alternative Power: Off-grid solutions like solar systems range from $15,000 to $40,000 for a home-ready setup with battery storage. A backup generator may add $2,000 to $10,000.
3. Sewer and Waste Management – Check For Hidden Costs
Public Sewer Connection: Connection fees vary but often run $2,500 to $25,000, depending on how far the property is from the nearest line.
Septic Systems: When sewer isn’t available, septic tanks are the alternative. Installation ranges from $5,000 to $20,000, though challenging soil conditions may cost more.
Soil Percolation Test: A required step before septic installation, typically $300 to $1,500.
4. Survey Costs – Check For Hidden Costs
Boundary Survey: Ensures accurate property lines, usually $500 to $2,000.
Topographical Survey: Required for construction projects to map slopes and drainage, costing $1,000 to $5,000.
Before Buying Land – Why These Costs Matter
Skipping these checks can lead to unexpected expenses that exceed the purchase price of the land itself. For example, a $30,000 parcel could easily require another $20,000–$50,000 in utility and survey costs before you can even begin construction.
Our Take – Before Buying Land
Before buying land, think beyond the asking price. Verify water, power, sewer, and survey costs early, and factor them into your total budget. Doing this due diligence will help you avoid surprises, negotiate better terms, and ensure the property meets your needs without breaking the bank.
Checklist Of Lands Hidden Cost: Take Picture, For Contract Review
✅ Step 1: Water Access
Public Water Connection: Check if city water is nearby. Connection fees usually run $1,500–$15,000.
Well Installation: In rural areas, drilling costs average $5,000–$15,000, but deep wells can exceed $20,000.
Water Testing: Always test for safety and flow. Expect $150–$500.
📌 Tip: No water = no deal. Confirm availability before purchase.
✅ Step 2: Power Source
Grid Hookup: Utility companies may charge $1,000–$30,000, with poles averaging $10,000 each.
Off-Grid Options: A solar setup with storage costs $15,000–$40,000; backup generators add $2,000–$10,000.
📌 Tip: Remote properties can look cheap but may cost more in utilities than the land itself.
✅ Step 3: Sewer & Waste
Municipal Sewer Connection: Expect $2,500–$25,000 depending on distance.
Septic System: Most rural buyers spend $5,000–$20,000 on installation.
Percolation Test: Required for septic approval, typically $300–$1,500.
📌 Tip: Failing soil tests can make land unbuildable—do this before closing.
✅ Step 4: Land Survey
Boundary Survey: Protects against disputes. Cost: $500–$2,000.
Topographical Survey: Needed for building on slopes or uneven land. Cost: $1,000–$5,000.
📌 Tip: Don’t skip—surveys save thousands in legal headaches later.
The Reality Check
A parcel listed at $30,000 may require another $20,000–$50,000 in preparation costs. These expenses can make or break your project.
Our Thinking
Before buying land, treat this checklist as a non-negotiable. Factor water, power, sewer, and survey costs into your budget upfront. Doing the homework now helps you avoid nasty surprises later and ensures your land is truly ready for the dream you’re building.
