Episode 7: Due Diligence-Buying Your Custom Home Lot
Your Guide to Smarter Lot Selection and Site Due Diligence
The Insider’s Guide to Custom Homes
Episode 7: Due Diligence—Buying Your Custom Homesite
Episode Summary
In this episode, Rick Bell walks you through one of the most overlooked — and most important — phases of building a custom home: buying the land. From zoning and drainage to soil, utilities, and FEMA flood zones, site due diligence can make or break your build. Rick shares real-world stories and explains what to look for (and what to avoid) before closing on a homesite.
What You’ll Learn
- Why site due diligence is essential before buying your lot
- What tests and inspections you should complete prior to closing
- How FEMA flood zones and elevation reports affect buildability
- The surprising risks of buying in gated communities or equestrian areas
- What easements and setbacks can mean for your dream home design
- Why water, sewer, and electric access might be more complicated than you think
Glossary of Terms
- Survey: A legal drawing that maps the boundaries and physical features of a property, required for title and permitting.
- Topographic Survey: A detailed survey showing elevation changes and land contours used to evaluate drainage and grading.
- Setbacks: Required minimum distances between a structure and property lines, roads, or easements.
- Easement: A legal right for someone else (e.g., utility company or neighbor) to use a portion of your land.
- Soil Test (Percolation Test): An evaluation of how well the soil drains, important for septic systems or structural planning.
- FEMA Flood Zone: A classification system by FEMA that indicates the flood risk of a property, which may require additional design or insurance.
Resources & Links
Connect With Rick
Below is the full transcript of Episode 7 of The Insider’s Guide to Custom Homes, hosted by Rick Bell. In this episode, Rick walks you through the essential due diligence steps before purchasing a lot for your future home. You’ll learn how to avoid costly surprises, understand site conditions, navigate zoning and easements, and make smart decisions before breaking ground.
View Full Transcript – Episode 7: Due Diligence-Buying Your Custom Home Lot
The Insider’s Guide to Custom Homes
Episode 7: Due Diligence—Buying Your Custom Home Lot
Opening
Welcome to The Insider’s Guide to Custom Homes. I’m Rick Bell, founder of Landmark Custom Homes. I’ve spent more than four decades helping people turn their dream homes into reality—building everything from charming retreats to expansive legacy estates. This podcast is your roadmap to building smarter, avoiding costly mistakes, and turning your dream into a lasting reality.
In today’s episode, we’re going to focus on one of the most critical first steps in the custom home journey: due diligence when purchasing your lot.
Why This Episode Matters
Before you break ground or even start designing your home, you need to understand what you’re buying—and that means investigating your lot. There are dozens of details that can derail your build if you overlook them. Today, I’ll walk you through what to look for, what to ask, and how to protect your investment before you close on a piece of land.
Key Due Diligence Areas
- Zoning and Land Use: Is the lot zoned for what you plan to build? Check with the local municipality.
- Easements and Setbacks: These invisible restrictions determine how and where you can build on the lot.
- Topography: Slopes, elevation changes, and drainage can increase costs and require special planning.
- Soil Testing: You may need geotechnical testing to assess load-bearing capacity or find out if there’s muck, rock, or fill beneath the surface.
- Utilities: Is water, sewer, electric, and gas available at the lot line? If not, costs can escalate quickly.
- Environmental Restrictions: Is it a wetland, flood zone, or protected area? That could limit or block your build.
- Access and Roads: Does the lot have legal access? If it’s off a private road, who maintains it?
Pro Tips
- Work with a builder early—even before you buy the lot. A good builder can spot red flags that you might miss.
- Use a due diligence checklist. (We’ve included one in today’s show notes to help you stay organized.)
- Don’t rely solely on what the seller says—get everything verified with surveys, site visits, and professional reports.
Final Thoughts
Buying land for a custom home is exciting, but it’s also one of the places where people make the biggest—and most expensive—mistakes. Doing your due diligence upfront helps you protect your investment and sets you up for a successful build.
Thanks for joining me today. If you found this episode helpful, be sure to follow the show, leave a review, and check out our other episodes to continue learning about the custom home process.