Building your dream home in Utah begins long before the foundation is poured—it starts with selecting the right land. Whether you are building in Southern Utah, Utah County, or Salt Lake City, choosing land for a custom home requires more than picking a scenic spot. From zoning laws to water rights and construction costs, there are critical details that can make or break your project. Here are five things to know before buying land for a custom home in Utah.
1. Understand Zoning Laws and Land Use Regulations
Before finalizing a land purchase, verify that the property is zoned for residential use and that your plans align with the building code and permit requirements of your local municipality.
Each city—whether it’s Salt Lake, Deer Valley, or a rural area in Southern Utah—has its own rules about:
- What type of home you can build
- Minimum square foot requirements
- Setbacks, lot sizes, and building height limits
If your vision does not match local zoning, you may need a building permit modification or a conditional use application. These delays can affect your construction timeline and total permit costs.
2. Verify Access to Utilities and Infrastructure
Not all undeveloped land includes access to essential services. Check availability and cost of connecting to:
- Electricity
- Sewer or septic
- Internet and cable
- Water service (or plan to drill a well)
Legal road access is also vital—some lots lack public entry points, which can impact property tax assessments and future resale. Connecting remote land to infrastructure may significantly increase your construction costs, especially if you need to bring in building materials from far away or upgrade access roads for heavy machinery.
3. Investigate Water Rights
In Utah, water rights are not automatically included with land ownership. If your lot does not already include irrigation or well access, you will need to apply for rights through the state.
Water is a major concern for custom home builders, especially in drier regions like Southern Utah. Without legal water access, your dream home may remain a dream. Before purchasing, find out:
- If water rights are included and transferrable
- If you can legally drill a well
- What it will cost to connect to municipal water
Understanding this step helps you make an informed decision and avoid construction delays.
4. Conduct a Thorough Site Evaluation
A piece of land might look perfect in a listing—but you must dig deeper. Evaluate the topography, drainage, soil quality, and potential for excavation. Check if the site lies in a floodplain or protected habitat.
If you are working with a general contractor or custom home builder, they can help identify whether:
- The land can support your intended floor plan
- The slope will require extensive grading
- There are issues that could increase material costs or timeline
Also, consider homeowners insurance and natural risks like wildfire zones or erosion, which can affect both construction and long-term ownership.
5. Secure the Right Financing
Financing a land purchase is very different from buying a new home with a mortgage. Most banks treat land loans as riskier, requiring:
- Larger down payments
- Shorter terms
- Higher interest rates
- Separate construction loans for building
Depending on the land’s condition, you may qualify for:
- Raw land loans (no utilities)
- Unimproved land loans (minimal development)
- Improved land loans (utilities and access in place)
Some homeowners use a home equity loan to fund their project, while others bundle their land and build into a single construction loan. Consult a lender or real estate agent familiar with Utah’s real estate market. Tools like a mortgage calculator can also help you budget properly.
Conclusion
Buying vacant land for a custom home in Utah is a big step—but with the right preparation, it can lead to your ideal dream home. By learning about zoning laws, confirming access to utilities, securing water rights, doing a detailed site evaluation, and lining up proper financing, you will avoid costly mistakes and keep your construction process on track.
At Roots Builders, we help Utah families navigate every stage of the home-building journey—from evaluating land to selecting finishes. Whether you are building a luxury home in Deer Valley, a cozy cabin in Southern Utah, or a larger home near Salt Lake City, our team ensures a seamless, stress-free experience.
👉 Contact Roots Builders today to get expert guidance on your land purchase and start building the home you have always wanted.
