Subject

Land selection and acquisition

How to evaluate a parcel before you buy it

In short

Evaluating land in Colorado means answering four questions before the offer: is water legally and physically available, what will the site cost to make buildable, what will the jurisdiction approve and how long will it take, and what can the finished product sell for.

Land is where the irreversible decisions get made, and it is where buyers spend the least analytical effort.

The four questions, in order

Is water legally and physically available? In much of Colorado water sets the density ceiling before zoning ever does. A tap from a district, a well permit with adequate allowed use, or nothing.

What will the site cost to make buildable? Grading, drainage, utility runs, and foundation type driven by soils. This is the largest source of unbudgeted cost in Colorado land.

What will the jurisdiction approve, and how long will it take? Setbacks, height, coverage, and the review timeline, which varies enormously by county and municipality.

What can the finished product sell for? For a developer this determines yield. For a homeowner it determines whether you are building something you can eventually leave.

The order matters

Each question can end the conversation. Establishing water first avoids paying for a soils report on a parcel that will never support the density you need.

The seasonal argument

Visit twice, in different seasons. Summer shows you the site. Winter shows you the access, the wind, the sun angle, and what the drive is like. Buyers who visited once, in July, are overrepresented among owners who regret the purchase.

Getting help

Site feasibility is a technical question and it deserves a technical answer. Our team includes a licensed professional engineer, which means a parcel can be assessed for what it will demand while a client is still deciding whether to make an offer. Our land acquisition work is built around that sequence.

References

Where writing in this subject rests on an outside authority, it is one of these.

Written and reviewed by Jason August, President and Employing Broker, Colorado license ER.040029060.ยท

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