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Today, I want to talk about lots and land in the Wasatch Front area. People tend to think of land just like they think of residential homes. They look at the information online, feel excited, and call us to build a house! However, it’s not that simple. There are a lot of factors involved with buying a lot, including if the property has been improved or approved.
When we ask if a lot is approved, we ask if the city has approved building on the lot. Does the zoning for the area fit the lot? Is the lot meant for a residential property? There is much to consider to ensure a home can be built on a lot.
Most of the lots for sale in Salt Lake County may be buildable but they haven’t been approved yet. It’s quite rare to buy a lot that has already been approved. You have to check in with the city because there’s a laundry list of things that have to happen before the home can be approved. You need house plans, paid permits, utilities, and so much more.
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You should also check to see if the lot is improved, which means the lot has had physical improvements added to make the property buildable. Some of these signs are not visible to the naked eye. However, if you see a green power box on or near the property, or if there is piping coming straight out of the dirt, those are signs that improvements have been made because you can tell that utilities have been brought to the property.
Not all lots are approved to build on.
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Subdivisions that are newly improved with roads, curbs, gutters, and sidewalks have lots that are most likely improved and approved. Some house plans might not have been approved yet, but most of them should be buildable. These subdivisions will be in rapidly growing areas, like South Jordan and Daybreak.
We often handle eastside Salt Lake projects and many lots purchased in that area are not improved or approved. Clients call all the time asking for a number, but the costs for improving a lot can vary wildly. We’ve had lots that cost more than $175,000 to improve, and that’s before you even build a house.
For example, there’s a lot right now on Kennedy Drive that’s listed for $160,000. That sounds like an amazing deal, but this lot has been for sale for years because $160,000 is a fake price. It’s going to cost hundreds of thousands of dollars to improve that lot. You will probably be half a million dollars in before you can even build on that lot.
If you have any questions about lots and land or about real estate in general, give me a call or send me an email. I would be happy to help you!
