The Real Guide to Buying Land and Building a Custom Home in Arizona.

(Gilbert, Chandler, Queen Creek, Mesa)

So, you’re thinking about buying land and building your dream home? That’s awesome—but let me be straight with you: it’s NOT as simple as picking a plot, hiring a builder, and moving in.

Most people get caught off guard by zoning laws, utility hookups, surprise costs, and financing restrictions. I’ve seen buyers jump in without knowing the full picture and get stuck with land they can’t even build on.

This guide is here to help you avoid those mistakes, make the process smoother, and save you time, money, and stress.

Step 1: Know the Zoning Laws Before You Buy Land

Not all land is created equal. Just because you can buy a piece of land doesn’t mean you can actually build what you want on it.

🔹 What You NEED to Check Before You Buy:

✔ Zoning Type: Is it zoned for residential use (R1, R2, etc.), or is it agricultural/commercial? Some land isn't even buildable without rezoning.
✔ Minimum Lot Size: Some areas require at least 1 acre per home. Make sure the land meets size rules for single-family builds.
✔ Setback Rules: These determine how far your home must be from the road, neighbors, and property lines.
✔ Height Restrictions: Thinking about a two-story home with a balcony? Some areas might not allow it.
✔ HOA Rules: If the land is in a master-planned community, there could be strict design guidelines, extra fees, or limits on what you can do.
✔ Flood Zones & Drainage Requirements: Some areas (especially in Queen Creek and parts of Mesa) have flood restrictions that require costly drainage solutions.

🚩 Common Myth: “If I buy land, I can build whatever I want.”
✔ Reality: Nope. The city/county decides what you can build. Always check zoning laws first—don’t rely on what the seller tells you.

💡 PRO TIP: Call the city zoning office before making an offer. They’ll tell you exactly what’s allowed (and what’s not).

Step 2: Utilities—The Hidden Costs That Can Kill Your Budget

If the land doesn’t already have water, power, sewer, and gas access, expect hefty bills to bring those in.

🔹 Utility Checklist (What You Need to Ask About!):

✅ Water Supply: Is there city water, or do you need a well? Drilling a well can cost $10,000 - $50,000+.
✅ Sewer or Septic: If there’s no sewer, you’ll need a septic system ($5,000 - $20,000). Some lots won’t pass septic inspections.
✅ Electricity: If power lines aren’t nearby, you could pay $10,000+ per utility pole to get connected.
✅ Gas or Propane: If there’s no natural gas, you’ll need propane tanks, which means higher heating costs.
✅ Internet & Cable: Some rural areas don’t have high-speed internet—which is a deal-breaker for many buyers.

🚩 Common Myth: “If a road is nearby, utilities must be too.”
✔ Reality: Not true! Some lots look ready to build but have zero utility connections. Call the utility companies and get estimates before buying.

💡 PRO TIP: Ask the seller for a recent utility bill (if available) to see what’s already connected. If they can’t provide one, assume you’ll need to pay for hookups.

Step 3: Financing Land (It’s Different From a Home Loan!)

Buying land is not like getting a regular mortgage. Lenders treat land loans as riskier, meaning you’ll face higher interest rates and stricter requirements.

🔹 Your Loan Options:

✔ Land Loan: Just for purchasing land. Requires 20-50% down and comes with higher interest rates than a home loan.
✔ Construction Loan: Covers both land and building costs. Typically converts into a mortgage once the home is finished.
✔ HELOC (Home Equity Line of Credit): If you own a home, this can be a great way to buy land with lower interest rates.

🚩 Common Myth: “I’ll get a regular mortgage for land.”
✔ Reality: Nope! Land loans require higher down payments, higher interest rates, and more upfront cash.

💡 PRO TIP: Some banks won’t finance land that doesn’t have utilities. Make sure the land is “developed” or be ready to pay cash.

Step 4: Finding the Right Builder (And When to Bring Them In!)

Once you own land, you need a licensed home builder to design and construct your house.

🔹 Choosing the Right Builder:

✔ Custom Home Experience: Some builders only do tract homes—you need one who specializes in custom builds.
✔ Transparent Pricing: Always ask for a detailed cost breakdown to avoid surprise charges.
✔ Knows Local Permits: The builder should be familiar with Gilbert, Chandler, Queen Creek, and Mesa regulations.

💡 PRO TIP: Talk to a builder BEFORE you buy land. They can evaluate if the lot is actually buildable and save you from making a bad purchase.

🚩 Common Myth: “I’ll buy the land first, then figure out the builder later.”
✔ Reality: Some lots are expensive or difficult to build on. It’s better to have a builder review the land before you buy.

Step 5: Permits & The Approval Process (This Can Slow You Down!)

Building a home in Arizona requires multiple permits and approvals.

🔹 Required Permits:

✅ Building Permit: Approves the home’s design and structure.
✅ Grading & Drainage Permit: Required if altering land elevation.
✅ Septic Permit: If installing a septic system.
✅ Driveway Permit: If adding or modifying road access.

⏳ Timeline for Permit Approvals:
✔ Standard home build: 3-6 months
✔ Complex or rural projects: 6-12 months

💡 PRO TIP: Expect delays! Some Arizona cities have backlogged permit approvals.

🚩 Common Myth: “I can start building right after buying land.”
✔ Reality: Permits can take months! Plan ahead to avoid delays.

Step 6: The Final Costs You Might Not Expect

Even after buying land, expect more costs before you can build.

🔹 Surprise Expenses:

✔ Soil Testing & Land Prep: $3,000 - $10,000 (some land needs extra grading).
✔ Utility Hookups: $10,000 - $50,000+ depending on location.
✔ Architectural & Engineering Plans: $5,000 - $25,000.
✔ HOA Review Fees: Some communities charge fees just to approve your home design.

💡 PRO TIP: Most people underestimate their total budget by 20-30%. Get a detailed cost estimate before you commit!

Final Thoughts: How to Buy Land the Smart Way

🚀 DO THIS:
✅ Verify zoning and buildability before buying.
✅ Get utility cost estimates in writing.
✅ Work with a local lender who understands land financing.
✅ Bring in a builder before making an offer.

🚨 AVOID THIS:
❌ Don’t assume land is “ready to build.”
❌ Don’t skip the soil test—bad land can ruin your plans.
❌ Don’t rely on the seller’s info—do your own research!

Need Expert Help Buying Land?

If you're serious about building in Gilbert, Chandler, Queen Creek, or Mesa, let’s talk! I can help you avoid costly mistakes and find the perfect lot.