What Does a Lot Cost in Raleigh, NC?

Finding Land to Build a Home On in the Raleigh Area

If you're considering building a home in the Raleigh, NC area, you're probably wondering what kind of lots and homesites are available, and how much those lots might cost.

For July 2008, here's an idea of what you might pay for a lot in Raleigh, NC - and how big that lot might be. 

This information reflects lots and pieces of land currently available on the Research Park Triangle area(RTP) MLS.  The lot price and lot size columns represent data points for each category - the two numbers do not necessarily reference the same lot.

Is this all the lots or land that are available?

Not all available Raleigh homesites are listed on the MLS.  There are also many neighborhoods that offer lots which either require the use of a specific custom homes builder team, or allow a homebuyer to bring their own builder. 

In either case, the proposed homeplan and exterior may need to be approved by the developers, and may need to fit certain standards (some communities require brick homes, for example).

What kind of lot or land I might find to build custom new homes in Raleigh, NC?

According to the MLS, here are a sample of some lots currently available:

A 1/3 acre lot in Lakestone Place for $350,000  (Inside the Beltline, city sewer and water)

A 1 acre lot in Estates/Brooks Crossing for $229,000 (septic and well, 1 mile to Cary city limits)

A 1.5 acre lot in the Woodspring neighborhood for $125,000 (hillside lot appropriate for daylight basement, city sewer and water, North Raleigh)

A 1/4 acre lot in Taylors Creek/The Neuse for $49,500 (Northeast Raleigh, city water and sewer)

How much should I spend on my lot or land? 

It depends on your total budget.  How much do you want your total mortgage to be when the construction is complete?  The cost of land generally represents 17-25% of the total value of your home.  

 Suppose your total budget is $400,000.   Let's look at a typical breakdown:

Land - $80,000

Real Estate Commissions - $24,000

Carrying Costs on Construction Loan - $12,500

Total Construction Costs - $283,500

Total Cost of Home: $400,000

In this example, land cost is 20% of the full cost of the home.   Remember, construction costs must include permits and fees, clearing and preparing the land, and all steps of construction from laying the foundation to laying carpet and paint.  Most experts recommend that land costs represent 17-20% of the total value of the home, but that can be stretched to 25% occasionally, if land costs in the general area are high.  Some include the cost of septic and well into the land cost calculation. 

 You may also be interested in:

Additional Raleigh New Homes, Lots, and Land

5 Easy Steps to Buying a Lot or Land in the Raleigh Area

Other Available Land and Lots in Communities

Subscribe to this blog!