2019 Idaho Real Estate Blog

How much does the lot cost relative to the cost of your new home? Main Idaho Real Estate Insights
Lot costs vary subdivision to subdivision and premium lot amenities can the building lot price but generally speaking the price of the lot to the overall construction costs are the same.

If you are considering building a new home how much should you pay for a lot? You can expect the lot to be 25% of the overall  construction costs. Obviously, lot costs vary but this is a good rule of thumb. You can also use this to reverse engnieer how much a home costs? This is a question I get regularly.

Some variables that add to lot costs are lot premiums-

  • Lots by water
  • Lots on Golf Course
  • Lot on cul de sac
  • View lot
  • Access to BLM

Many times a lot can be presented as having more value due to the developer's reputation, specific area it is located in and other random variables. Although these may be a bonus, they are not amenititeis that add value. Banks do care who built the lot nor do they care where it is, unless it adds risk to the loan, ie near a proposed nuclear plant.

Dream big in 2009

Trey Langford
Founder

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Posted by tlangford at 7/27/2009 4:59:00 PM
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