Factors to Think About When Considering Lot Cost vs. Lot Price

A recently started Zbranek &Holt Custom Homes project in Vineyard Bay overlooking beautiful Lake Travis,

One of the many informational sessions presented by Steve Zbranek, the 2011 & 2010 National Master Builder of the Year, to Realtors and prospective home buyers is called “Lot Cost vs. Lot Price”.  When selecting a site for a new home, price and location are always the drivers.  However, the ultimate consideration is the targeted cost of the completed home project.  The agreed upon price of a home site doesn’t tell the whole story.  Items such as topography, vegetation, water and sewer, soil conditions and regulatory requirements for construction are just a few examples of costs that vary from location to location and have significant impact on the final completed home cost.

A good rule of thumb is that the land “Cost” (sales price plus the above expenses to get the site ready to build) should not exceed 25% of the total project cost.  There are obvious exceptions such as high end lots and smaller home sizes but the 25% rule is a nationally accepted starting point.  The best way to know the “Cost” of a site is to consult with a building professional before agreeing to a final price and closing date. 

At Zbranek & Holt Custom Homes, Ltd. our team of highly skilled Master Builders in the greater Austin Texas area offers this service for Lot Assessment, at no charge to our clients.     For more information or to discuss your custom home ideas contact us at 512-261-0344.

Initial lot preparation and cutting prior to pouring of foundation for the custom home to be built on this lake front property.

Posted on Tuesday, June 21st, 2011 | Categories: Articles, In the Press, News Updates, Steve Zbranek, Tony Holt