Sometimes the house on the lot is the least valuable part of the deal. Builders and investors look for older homes on good lots to tear down and replace, and for vacant land to build on. The profit is in the lot, the zoning and the cost of construction. Miss one of those and the numbers fall apart.

What decides the value of a lot

• Zoning and use: what can legally be built, how big, and how many units
• Setbacks, lot coverage and height limits, which shape the house you can fit
• Utilities: public water and sewer, or septic and well, and the cost to connect
• Topography, drainage and flood zones, which affect foundation and site costs
• Tree, stormwater and erosion rules, which vary by city and county
• Easements, covenants and access, which can limit or block what you plan

Questions to answer before you offer

• What will the finished home be worth, based on recent sales of new construction nearby?
• What will it cost to demolish, grade, build, connect utilities and pay permit and impact fees?
• How long will permitting and construction take, and what do you owe in carrying costs while you wait?
• Is a survey, soil test or environmental review needed?

Financing

Land loans and construction loans usually have different terms from a standard home mortgage. Many builders use cash, private money or a construction loan. Talk to Nil about approved lenders.

How we help

We have bought, torn down and rebuilt houses in Metro Atlanta, so we know how to read a lot and what to ask the city before you commit. We can help you find candidates, check the numbers and connect you with an attorney, surveyor and builders from our network. We work across Atlanta, Brookhaven, Decatur, Duluth, Ellenwood, Griffin, Hampton, Lawrenceville, Lilburn, Locust Grove, McDonough, Norcross, Snellville, Stockbridge, Stone Mountain and Tucker.

Nil Patel is a licensed Georgia real estate salesperson with Keller Williams Realty Atlanta Partners. This page is general information, not legal, tax or financial advice, and nothing here is a commitment to lend. Talk to a lender and a real estate attorney about your own situation. Investing involves risk, and past results do not guarantee future results. If Nil, a team member or an affiliate wants to buy a property directly, that buyer will say so in writing before you sign.