Buying land to build a house can be a fantastic decision. However, it is one that you’ll want to research a bit before taking the plunge to start working on your dream home. Generally, building a house on land you previously bought involves some basic steps, and Blythe Custom Homes can help you navigate them.
For example, you must purchase the land on which you plan to build. Depending on how developed the land is, we may have to spend time adding utility and road access. We spend time reviewing home plans with clients to ensure they’re satisfied with the final plans before construction begins. This helps construction run smoothly and stay within budget. In the end, what matters is that you have a home you love in the perfect location for you and your family. We’re here to help you find your happily-ever-after home.
Get help navigating building on your own land and visit Blythe Custom Homes online today.
Guide to Navigating Building on Your Own Land
Building a custom house on your own land gives you tons of control over the project, but it also means having to make many more decisions than you would if you bought a home or built a house from our portfolio of base plans. We help clients navigate building on their own land, making the process as smooth, quick, and enjoyable as possible.
Find the Piece of Land You Want to Buy
Before you can even begin thinking about building on your own land, you must find the piece of land you want to buy and build on. You can do so through a trusted, experienced real estate agent, through your home builder, or on your own.
The piece of land you want to buy may affect certain aspects of your home build, so keep that in mind if you want specific outdoor features or landscaping.
Move Forward with the Land Purchase Process
Once you find the piece of land you want to buy, you can move forward with the land purchase process. Unless you purchase the lot in cash or with seller financing, you may get a loan to fund the purchase.
A construction-only loan provides a one-year, higher-interest-rate loan that gives you a short time to build a house and purchase your real estate. You receive advances during the construction process to pay only what you need at that time for the next phase of construction to fund construction materials and labor.
A raw land loan is for completely undeveloped land, which may be more difficult to finance. There are also unimproved land loans, which are for land that may have some utilities but still needs meters for gas or electricity and a phone box. Or, you might get an improved land loan for a lot that has access to a road and utilities.
A construction-to-permanent loan pays for building your home, then the loan converts to a permanent mortgage or end loan (a 15-year or 30-year fixed-rate mortgage) once construction is complete. It is a way to have a single closing with one time to pay closing costs, which reduces your total fees.
Choose Your Custom Home Builder Carefully
Picking your home builder is one of the most important decisions you can make when building on your own land. Our strong relationships with vendors, experience building luxury custom homes, and transparent communication style make Blythe Custom Homes the ideal partner to bring your family’s dream home to life.
Decide on Your Home Design and Floor Plan
Once you’ve decided to trust us to build on your own land, it’s time to decide on the home design and floor plan. Some home buyers work with their own architects initially, while others choose from available house plans in our portfolio. You can also work with our in-house designer to create the ideal floor plan for your family’s needs.
Begin Construction
When the builder-approved blueprints are ready, construction may begin. This happens after pre-construction land improvements are done, which may take some time. Many factors affect a new home’s build time, and we can provide regular updates and work to meet your desired move-in date.
Prepare Your Belongings to Move and Sell Your Old Home
If you sell your old home before construction on your new custom build is complete, you may secure a rental home or apartment if needed.
Switch to a Mortgage Loan When Construction is Complete
Suppose you funded the project with a single-close construction-to-permanent loan. In that case, it will automatically turn into a regular mortgage when construction ceases, and you won’t have to get a separate mortgage loan.
The process is not complicated if you have a trusted realtor, lending company, and home builder helping you navigate it.
What Affects the Cost of Building a House on Your Own Land?
For any new home build, calculating building costs and picking an ideal budget is paramount. We can factor in the cost of land development, land improvement, permits, the house features and size, and the building materials, so you have an accurate estimate of the cost to build on your own land.
Land Development
If you choose to build a home in a subdivision, the land has likely already been prepared. The utilities are already available. The road is already constructed. Of course, these costs impact the price of your lot.
Are you buying land with utilities or without? If it is raw land, consider the cost of hooking up utilities. The expense can easily run from $10,000 to $30,000 or more, depending on the distance from your lot to existing utilities. We can check on the exact distance and pricing for your utility hookup, including electricity, natural gas, water, and sewer lines. Ask your local services or a local contractor for an estimate.
If you aren’t close to water and sewer utilities, investigate the cost of drilling and maintaining a well before purchasing the land, and ensure the lot can support a septic system. A well can cost anywhere from $2,000 to $25,000, depending on the depth required. A septic tank will likely cost less per month to operate than public sewer service fees, but the installation may cost $3,000 to $20,000 due to the land preparation and parts required.
If you are buying developed land, keep in mind that there will still be tap fees for your phone, cable, power, gas, sewer, and water. These are typically one-time charges to connect utilities to the local system. In addition, there will be the cost per square foot of extending the lines from the road to your home.
Land Preparation Work
How much work needs to be done to prepare the land for building? Will you need surveying, tree removal, grading, and drainage solutions? Land preparation is a crucial step, and may involve adding soil to fortify the area, and taking all necessary steps to ensure your home sits level and sturdy on your desired lot.
We can estimate the cost of land preparation and excavation, and build it into the total budget for your new custom build.
House Features and Size
The house’s size and floor plan will also affect the cost to build. Tell us how large you need your custom house to be, and we can estimate the cost based on the square footage.
Other house features will affect the cost to build as well. For example, what size driveway will you need, and what type of driveway do you want? Will you want landscaping done? To what extent? Will you be installing an in-ground pool or other amenities, like an outdoor kitchen? We can help you consider all the features that will make your home unique when creating your budget.
Building Materials
Building materials also affect the cost of building on your own land. When creating a custom home, you have complete control over the materials used. We appreciate that clients often want to use luxury materials like sturdy wooden beams, quartz kitchen countertops, and high-end finishes throughout a house.
If you’re still deciding between some building materials, like the tile to use for the kitchen backsplash, we can make allowances in your budget to avoid any surprises.
For the best estimate about how much your home will cost to build, check with our home builder for a ballpark figure before getting started. Once you know what lot you are using and you have the home design ready, you can get a very precise figure.
What Are Additional Costs to Consider When Building on Your Own Land?
There are other expenses to consider when building on your own land, and our builders can factor that into the total cost to construct your custom home, adjusting your budget accordingly.
Closing Costs
For example, you should consider closing costs, which generally run 2-5% of the total home and land cost. There is also the real estate commission, which is usually 6% of the land price.
Property Taxes
Then there are property taxes. South Carolina has relatively low property taxes compared to other states, about 0.57%, and homeowners pay just over $1,000 on average in property taxes here. But keep in mind that in luxury neighborhoods and highly sought-after school districts, property taxes may be a bit more than average.
Homeowners Insurance
Homeowners insurance costs about $2,350 annually for South Carolina residents in 2025, about $196 per month.
Homeowners Association Fees
Homeowners association fees generally cost between $200 and $400 per month or more, depending on the amenities provided.
Are You Ready to Build a Home on Your Land in the Lexington, SC Area?
At Blythe Custom Homes, we’d love to help you get your dreams off the ground, so reach out on our website to get started.
