I am in the process of doing the same. I will wait to see what comments are made. Glad you posted this.

I hired a local attorney. In the area forever, knew everyone, lots of real estate and construction experience. His firm did research, discovered a zoning issue, and we put a contingency in the contract based on receiving a zoning confirmation letter from the city. Was that all necessary? I don't know, but it gave me a lot of piece of mind, and now I have a relationship with a great attorney to consult with during construction. And he gave me lots of great advice that I wouldn't have thought of.

When you look at the plat, there should be the name of the engineering company that did the work. See if you can contact them and get any extra info.

Then look at the comps, the sales price (not asking price) of up to date homes in the neighborhood. Take that price, back out the ballpark land and site development costs, and see what you are left with. Divide that number by a very generous cost per square foot, maybe $150 - $200. That gives you a very rough idea of the size of the house the market might bear. If that house size is significantly smaller than the typical size in the neighborhood, it's not a good financial move-- which may be why the lot is vacant.

That's the kind of mental process a developer or builder goes through, at any rate. If you are getting a loan through a bank, they will look at the project in terms of reasonable collateral, for the time that they own the loan at least, until they sell it to Wall Street. Typically, from a finance POV, the project must "pencil out," as they say, or the lot sits vacant.

Almost every type of problem can be overcome, clay soils, flooding, earthquake, what have you. But if the finances don't work, you should think twice.

Thank you all very much for helpful tips, many I hadn't thought of!

Couple questions:

1) what does a soil test normally run (cost wise)?

2) The lot is a side yard next to a big, old house that is also for sale but has been sitting empty (it's a big project). Inside architecturally it's beautiful, but it's been neglected. Should I factor this into the price in any way? What drawbacks could the lot experience from sitting next to empty house? It's in the northeast, with 4 distinct seasons and weather swings.

3) Of big importance to me is that the adjacent house for sale will block much of my southern exposure in winter. The lot is wide, but I'm worried what shadows it will cast (it's very tall - nearly 3 stories).. Natural light is incredibly important to me. Is there a way to calculate what kind of shadow I can expect in winter months?

1. Impossible to say. If the lot is being sold as "buildable," then you may be able to get the seller to do a simple permeable test. Make it a contingency.

2. If the house becomes a rental squat full of drug addicts, that certainly factors in. Look at the price-- if it's too expensive for a rental, then it might be rehabbed. Look at the whole neighborhood. Look at the comps.

3. Yes. IIRC you need the height of the house and the degree of latitude. Then you just sketch it and see where the shadow falls.

HTH.

I just looked back and our soils report was $1,091 -- breakdown was $100.00 for track hoe rental and mobilization; $220.00 for project engineer; $4.00 for mileage; $55.00 for Classification Testing; $50.00 for Gradation Test; $12.00 for Moisture/Density test; and $650.00 for Senior Project Engineer. I don't know if that's the norm or not. The soils report contained detailed foundation recommendations.

GIS may have exact soil type.

When it comes to land and water, there are always several common things to check:

1. Surface drainage and runoff: how does water from off site and on site drain off the site? Is there an area on site where water collects? Sites where surface water collects and remains is always problematic.

2. Permability: If the site is located in an area where septic disposal systems and well water for domestic supply are located, is the site large enough for the code-required seperations of these two important, but competing systems? Will the site successfully meet perculation standards for "normal" septic systems? Is the site large enough to meet the regulatory jurisdiction's requirements for fresh water drilling?

3. Expansive soils and foundation design: Are the soils expansive? Has a soils test with foundation recommendations been performed? What types of foundations are recommended to counteract the soils conditions?

4. Site improvements: Are utility and access improvements on site or at the property lines? What will be required to: a) access the house by vehicle; b) provide normal utilities to the building site; 3) respond to any special regulatory requirements for the property?

Site analysis is really the first place for investigation and for design of a house. The more isolated the site, the more the importance. But it's important in every design and building situation. It's amazing how many folks don't do this and focus instead on granite countertops and enlarged laundry rooms.

Hope this helps.

One (of many) reasons we are building and moving is our neighbors house blocks the south sun. Their trees were small when be bought and now block so much sun. If light is important, I'd think hard on that.

virgil, rain water is remaining/collecting in a large puddle and takes several days to dry. The lot is a side yard to a large (think 1920s mansion) house. It doesn't look like they've unkept the property (and house not empty). Sellers agent says it needs a French drain, and I think it needs to be leveled. It is in a very established neighborhood (so not isolated), with most houses on the street built between the 1920s - 1950s. The area has some clay soil that people sometimes complain about in terms of gardening, but it is not marked as an area with a big risk for expansive soil. Am I right (or wrong) to think if there are rows of houses all with basements built into generally the same soil, the soil probably isn't unbuildable. I will of course have the soil tested to be sure. what I AM also concerned about is that there could be some kind of heating tanker, as the big house next door even has a coal shoot out by the detached garage. I can't imagine how they must have tried to heat thousands of sq ft back in the 20's. Realtor said they could do some sort of metal detection. That would be a deal killer if there was something buried under there. Any thought helpful...

Sorry, meant house IS now empty/vacant.

Btw, town building inspector and local architect both tell me not to worry too much about the soil...

I personally would go for the big, old house next door. If it has sat empty, you could make a lowball offer and perhaps get the deal of a lifetime. But then, that's me!

Is there a way you could check with neighbors to see if any have had soils or movement problems with their basements? That would be good info to know. As for any buried subsurface items you could make that a contingency to your offer for removal and remediation at seller's expense. Have there been similar examples in the neighborhood which are the cause for concern?

LOL sbkh. I'm with you.

The thing is, even if you do all manner of due diligence, you can take the first scoop with the backhoe and find something horrible. Like a dead body, God forbid. It's just part of the risk. So ultimately the question becomes, do you have enough of a war chest to deal with any conceivable problem that comes up, or will something like that really hit your finances more than you can bear? And do you want to deal with the stress?

If the lot is utterly amazing, and you love it, truly, madly, deeply, and you have the cash, then go for it and don't look back. Just deal. Otherwise, walk away, and find something you have more confidence in. There will be other lots, or other homes, and when you find it, you will know.

Due diligence is a great thing. But if you're unsure, poking around, heming and hawing, and just plain waffling, it's not The One. Trust me on this. :)