One of the most important parts of building your dream home is the land it’s built on. Often we get asked by clients who are starting their search for a parcel of land to build their dream home in Northern Colorado: “What are some things I should be looking for in a piece of land?”
There are a lot of answers to this question, depending on exactly what each buyer is looking for. How many acres do you need? Are you looking for land you can have horses or livestock on? Are you looking for outbuildings such as carriage houses, horse barns or shops? How about a walk out basement? Do you want a view? While many of these may seem like personal preferences, most of these factors play a significant role in the land you choose.
In this guide, we cover the top 5 considerations you should think about as you buy land in Colorado. By helping you understand these ins and outs, we hope to help you make an informed decision and choose the perfect setting for your new home build.
Water Accessibility
When building in Colorado, water is king. You shouldn’t make an offer on your land without knowing about the water first. The first question you’ll need answered is: What is the water situation on the piece of land you are considering? Is a water share included or not? If not, are there water shares available? How much does the water share cost? Water shares can run $90,000 to $160,000, and larger tap sizes can run a lot more.
If no water shares are available, you’ll need to know if wells are allowed. Will the well permit allow for irrigation, watering livestock (how many) or is just potable water (house water)? How deep you will have to drill a well will in large part determine how much it will cost. Typically, the local well drilling companies can answer that if they have been around for a while. We have even built homes where there was no water available, and the house was fed off a cistern we installed underground. Water had to be delivered from off site on a consistent basis.
Soil Type
The second thing we usually tell people to consider is what type or types of soil are on the building site you are considering.
Colorado is known for its expansive soils. Expansive soils are certain soil types that expand or swell when in contact with water, and shrink when dry. If in contact with a traditional footing foundation, these expansive soils would continuously shrink and swell, causing the foundation itself to shift and crack.
Your house can be built on expansive soils, however, it typically adds a significant amount to your building costs. In order to mitigate the effects of expansive soils, the engineer will require either a caisson foundation or what is often called over excavation (over ex).
Caisson Foundations
Caissons are concrete piers used to support homes that are built on soils that are weak, expansive, or unable to bear the load of the house. These piers go deep beneath the unstable soils and transfer the load of the home directly to the underlying bedrock. In a caisson construction, the walls “float” between these piers and do not bear directly on the soil, resulting in better stability and reduced risk of settling or shifting.
This foundation type is very common for homes built on expansive soils, especially here along the Front Range where other foundation types aren’t compatible.
Over Excavation (Over Ex)
Over excavation requires that the building site under the house be dug down deeper than normal. Commonly, this looks like around five extra feet, but that number can vary. The soil then has to be wetted and packed back in to engineer specs and tested in one foot intervals.
Both of these systems of dealing with expansive soil will add costs that you might not realize on your appraisal. If you discover a lot of rock under your building site, blasting may also be necessary which can also add up!
Different soil types will also require different size and types of septic systems. A natural flow septic system with good draining soil is the most desired, but that also requires enough slope away from your house in order for that to work. As soon as pressurized pump systems are required or poor draining soils are present the price of the septic system can double.
Development Potential: What Are You Looking to Build?
When buying land to build a house, assess its development potential based on what you plan to build. A land survey is often the first step, helping you to identify property boundaries, topography, and any restrictions that may affect construction.
What is Allowed on the Land: How is the Land Zoned?
Zoning laws dictate how land can be used, and understanding these regulations will help determine whether your plans align with county requirements. Most rural properties in Weld, Larimer, and Boulder counties are zoned as either residential or agricultural, each with different allowances and restrictions.
- Residential zoning typically allows for single-family homes, though setbacks (minimum distances from property lines) will determine how large of a house can be built.
- Agricultural zoning often permits larger homesteads, barns, and additional outbuildings but may come with specific restrictions on land use, livestock, and future subdivision potential.
Property Access
Before purchasing land in Northern Colorado, you should consider how accessible the property is year-round. Some parcels may have well-maintained paved roads leading directly to the site, while others rely on dirt roads that can become difficult to navigate in heavy snow or rain. If a road isn’t maintained by the county or a homeowners’ association, you may be responsible for upkeep, including snow removal and repairs.
For more remote properties, access may be limited or nonexistent. Some landowners assume they can build a road wherever they want, but this isn’t always the case. If a property lacks direct road access, you may need an easement—a legal agreement granting the right to cross another person’s land. You will need to verify that any existing easements are properly recorded and provide sufficient access for construction vehicles and emergency services. Without legal access, securing building permits may not be possible.
Before committing to a piece of land, check county regulations and property records to confirm that access is both legal and practical. This brings to mind one couple that contacted us after already purchasing a large parcel of land and completing extensive architecture drawings. In order to access their desired building site they had to cross a creek that ran through the property. The cost of getting a permit to build a bridge and the cost of the bridge itself was a deal breaker—leading them to seriously consider reselling the property.
Climate & Weather
Much of Northern Colorado, particularly in Larimer and Boulder counties, is within a designated wildfire zone. If you’re building in these areas, local regulations may require fire-resistant materials, like metal roofing, fire rated windows, and more, which will impact your building costs.
Historic Sites
If there are existing structures on the property, it’s important to check if they are designated as historic sites. Historic preservation laws may restrict any modifications to the exteriors of these structures, requiring special approvals for any changes.
Build on Your Lot or Acreage with Homestead Homes
Building a custom home in the country comes with its own set of challenges, but with the right planning and expertise, it can be an incredibly rewarding experience. We appreciate you taking the time to read our insights from our experience in custom home building.
If you have any questions or need guidance, feel free to call us at 970-775-3796 or send us a message—we’re happy to help. And don’t worry, we’re not here to scare you away from country living. When done right, it’s absolutely worth it!
Homestead Home Builders is a home builder specializing in custom homes in Weld County, Larimer County, Boulder County, and throughout Northern Colorado. For more information on a new build, or advice on a lot you’re looking to build on, call 970-775-3796.