20 Things to Know before Buying a Lot for your Custom Home in Austin

At Rivendale Homes, we specialize in building luxury customhomes in Austin—and that process always starts with the land. Choosing theright lot is one of the most critical decisions in the entire journey, and itcan make or break your project before construction even begins. Whether you'rea first-time builder or a seasoned investor, here are the most important thingsto know before you buy a lot for your future home:

1.Location

The location of your lot affects more than just your dailycommute—it influences property value, school zoning, neighborhood character,and long-term livability. Consider your proximity to parks, restaurants,shopping centers, and future city development plans. A walkable location or ascenic greenbelt nearby can add significant value. Visit the lot at differenttimes of day and night to get a feel for traffic patterns, noise levels, andgeneral neighborhood energy.

2. Zoning Rules

Zoning governs what you're allowed to build and where. InAustin, this includes setbacks from property lines, maximum building height,floor-to-area ratio (FAR), and impervious cover limits, which restrict how muchof your lot can be covered with hard surfaces like roofs, driveways, andpatios. Many central Austin neighborhoods fall under Subchapter F, commonlyknown as the McMansion Ordinance, which restricts the size and shape of newhomes to preserve neighborhood character. These regulations can significantlyshape your design, so always verify zoning specifics before buying.

3. Neighborhood Planning Areas

In addition to base zoning, many areas in Austin are part ofa Neighborhood Planning Area (NPA) that enforces additional design standards.For example, NPAs like Crestview and Saint Edwards may regulate garageplacement (e.g., discouraging front-facing garages), building scale, and facadearticulation. These requirements are hyper-local and can sometimes conflictwith what zoning otherwise allows. Failing to comply can cause expensive designrevisions and permitting delays.

4. Tree Regulations

Large trees may add beauty and value, but they also comewith restrictions. In Austin, any tree with a trunk diameter of 19 inches ormore is considered protected, meaning it cannot be removed or impacted withoutcity approval. These trees often impose their own setbacks, which limit whereyou can build on the lot. If a protected tree is in the middle of your idealbuild zone, you may need to redesign the home around it—or walk away from thelot altogether.

5. Deed Restrictions

Deed restrictions are private rules tied to a property andare often more restrictive than city code. They may limit your home to onestory, prohibit certain siding materials, or require detached garages. Even ifthe city permits a design, deed restrictions may prevent it—and they're legallyenforceable by other property owners in the same subdivision. Always review therecorded deed restrictions and consult with your builder and attorney beforecommitting to a purchase.

6. Neighborhood Context & Community

Beyond zoning and setbacks, take time to understand thebroader character of the neighborhood you're building in. Walk the block,observe how properties are maintained, and note whether surrounding homes areowner-occupied or rentals. Are there other new homes or renovations nearby, orwill yours be the first? In some communities, new construction is embraced asrevitalization; in others, it can draw resistance during the permittingprocess. Consider how your future home will fit into the streetscape in termsof style, size, and curb appeal. Also, look at nearby amenities—parks, grocerystores, trails, and schools—all of which contribute to livability and long-termproperty value. A great design in the wrong setting can still feel out ofplace.

7. Electric Service Capacity

Modern custom homes typically require more power than olderhomes—especially if you're adding high-efficiency HVAC systems, electric carchargers, or advanced smart home infrastructure. Many older neighborhoods werebuilt for much lower electrical loads and may need transformer upgrades orentirely new service drops. These improvements aren’t always the utilityprovider’s responsibility—sometimes the cost is yours. Have a licensedelectrician evaluate what’s needed before you commit.

8. Water & Sewer Conditions

Many prospective buyers assume water and wastewater servicesare a given, but that’s not always the case—especially on vacant, but this iseven true when you’re tearing down an existing house. You’ll need to verify theavailability and capacity of water, sewer, and electrical service. Some olderneighborhoods can’t support modern power loads, requiring transformer upgradesor trenching. New sewer taps or water meters can cost thousands of dollars.Always request utility service records and engage a builder or civil engineerto assess potential upgrade needs before you buy.

9. Floodplain Information

Austin has many creeks, low-lying zones, and flood-proneareas. If a portion of your lot sits within a 100-year or 500-year floodplain,it can trigger serious design restrictions, require elevated foundations, andimpact insurance rates. Always check the City of Austin floodplain maps andhave a civil engineer review the site as needed. In some cases, even minimalencroachment can drastically affect buildability.

10. Erosion Hazard Zones

Some lots fall within Erosion Hazard Zones (EHZ)—areas atrisk of soil instability due to slope or proximity to waterways. These zonesrequire additional engineering, geotechnical studies, and construction measuressuch as retaining walls or specialized foundations. It’s not a deal-breaker,but it can add significant time and cost to your project.

11. Soil Conditions

What’s underneath the ground matters just as much as what’son top. Austin’s soil varies greatly—from expansive clay that swells withmoisture to shallow limestone that requires blasting. A geotechnical soilreport is essential and will inform your foundation design, which is one of themost expensive parts of the home. Problematic soil conditions can add tens ofthousands of dollars to your build.

12. Drainage

Good drainage is critical for long-term home performance.Lots that don’t naturally drain away from the house may require grading, Frenchdrains, or engineered systems. Poor drainage leads to foundation issues,standing water, and landscape erosion. Observe the site after a heavy rain ifpossible—or bring in a drainage expert to assess.

13. Easements & Encumbrances

A lot may appear wide open, but legal easements cansignificantly restrict buildable area. These may include utility easements,drainage easements, shared access easements, or even undergroundinfrastructure. You can’t build within these zones—and in some cases, you can’teven install landscaping. Always review the title commitment and a currentsurvey to identify and understand these encumbrances.

14. Overhead Powerline Clearance

If overhead powerlines cross or run near the lot, you’llneed to meet strict clearance requirements that can limit your roof height,tree placement, or structure location. In some cases, you may need to bury thelines or request relocation from Austin Energy—both of which come with cost andtime considerations.

15. Views

Orientation and views can make or break a luxury home. Willyour future home offer greenbelt, hill country, or skyline views? Or will itlook directly into the neighbor’s yard or a commercial parking lot? Considerboth positive and negative view angles when designing your home. Smart windowplacement and elevation decisions can significantly impact the livability—andvalue—of the finished product.

16. Construction Costs

No two lots are the same, and construction costs can varywildly based on lot-specific conditions. Slopes, tree preservation, utilityupgrades, poor soil, and accessibility challenges all add to the budget. On topof site costs, finish level choices like custom millwork, luxury appliances,and high-end materials can significantly impact your final price. At RivendaleHomes, we help you establish a complete construction budget early so there areno surprises later.

17. Project Timeline

Custom homes take time—especially in Austin. Permittingalone can take 3 to 6 months, and construction typically runs 9 to 18months, depending on scope and complexity. If the lot requires zoningchanges, tree reviews, or utility extensions, add more time. Managing yourexpectations around timeline is crucial for a smooth process, and we’re here toguide you through every step.

18. Latent Site Conditions

Some issues aren’t obvious until later—things like burieddebris, old retaining walls, invasive bamboo, or nearby road noise. These latentconditions may not show up in photos or quick site visits but can introducereal challenges once construction begins. Our team conducts thorough duediligence to identify and address these issues early.

19. Historic Districts

Some lots fall within local or national historicdistricts, which can drastically limit what you can demolish and build.Even if a structure isn't individually landmarked, it may still be subject toHistoric Landmark Commission review. Demolitions and exterior changes in theseareas are often delayed—or denied outright. Before purchasing a teardown lot,verify whether it's within a historic overlay and what limitations apply.

20. Price of the Land

As a rule of thumb, the land should cost roughly 25–40% ofthe total completed home value. If you spend too much on the lot, you may endup compromising on construction quality or design. We help you analyze landvalue in the context of your total project budget to make sure you’re notoverbuilding (or underbuilding) for the area.

Final Thoughts

At Rivendale Homes, we understand that buying a lot is oneof the most important—and most complex—parts of building a custom home. That’swhy we offer a free site consultation as part of our introductoryservices. We’ll walk the property with you, review site constraints, analyzepotential build challenges, and help you determine whether the lot is a smartfit for your goals. With the right guidance from day one, you can avoid costlysurprises and start building with confidence.