Buying Residential Land: What I Wish I Knew Sooner

I didn’t always think of land as a smart investment. Most people I know were all about ready-made homes. But after a frustrating year of house hunting, I gave up on bidding wars and decided to buy residential land instead—and honestly, it was one of the best decisions I’ve made.

The process wasn’t glamorous. There were weeds taller than me and no clear path to anything. But what I saw was potential. I didn’t want someone else’s kitchen layout or poorly placed windows. I wanted to build a place that actually made sense for me.

That said, I learned pretty quickly that you don’t just go out and pick a lot. The first few I looked at seemed fine on paper—good price, “residential” zoning, nice enough area. But then I’d visit in person, and suddenly things changed. One was next to a water treatment plant. Another didn’t have access to city sewage. One was technically in a flood zone. That’s when I started to realize that buying land is part instinct, part detective work.

One thing that helped? Looking into neighborhoods to buy property that had growth, but not hype. I found a few spots where new schools were being built, and small businesses were slowly popping up. It wasn’t trendy, but it felt real—like a place people actually lived, not just passed through. That’s where I focused.

Before I made an offer, I spoke to neighbors. I asked what the winters were like, if they liked the area, and if anything weird ever happened with the land. You’d be surprised how much you can learn just by asking.

And here’s something no one tells you: soil matters. One of the lots I nearly bought had soft, unstable ground. If I’d gone through with it, I would’ve spent thousands just to prep the foundation. I had someone test the soil on the lot I finally chose—best $300 I ever spent.

Also, utilities. I can’t stress this enough. Check if the land has access to water, power, internet—even if the listing says it does. Call the city. I almost bought a piece of land thinking it was “ready,” only to find out I’d have to pay to bring in a utility line from two blocks away.

I didn’t build right away. I held onto the land for a bit while I figured out my budget and design. During that time, property values in the area started rising. A few new homes went up nearby, and suddenly I had equity in something I hadn’t even built on yet.

If you’re thinking about it—truly thinking about making a move—don’t let the fear of the unknown stop you. But also, don’t rush. Walk the land more than once. Visit the neighborhood in the morning and again at night. Trust your gut.

To buy residential land is to invest in possibility. It won’t give you instant curb appeal, but it gives you space to build something that’s actually yours.

I don’t regret passing on those bidding wars. I don’t miss the stress of trying to “win” a house. I just look at the plot I own now and think: yeah, this was the right call.