4 Things You Should Know About Building on Raw Land in New Jersey

4 Things You Should Know About Building on Raw Land in New Jersey

If you just can’t find your dream, maybe building it on raw land is the best option. It is for many people because there are several benefits. But along with those benefits come not a few challenges and hurdles to be overcome that can transform an exciting adventure into something more like a nightmare. But if you’re forearmed with some knowledge of what to expect, you can navigate the land-buying and building process smoothly. To that end, we offer these 4 things you should know about building on raw land in New Jersey.

1. It Can Cost More Than You Think

Many people think the only costs involved in building on raw land in New Jersey ate the cost of the land and the construction costs. But, in most cases, the costs and potential costs go far beyond that.

Just some of the additional costs of building on raw land in New Jersey are for . . . 

  • “Clearing and grading the land”
  • “Building an access road”
  • “Environmental testing”
  • “Additional permits”
  • “Building access to utilities like water, natural gas, and sewage’

So, experts recommend that when you’re “deciding what piece of land to purchase for your new home, consider the other costs to build a house on undeveloped land.” To discover more about these costs, contact a New Jersey agent at 855-966-DEAL.

2. There May Be More Cons Than You Expect

The pros of building on raw land in New Jersey are numerous (of which you’re likely aware), but there are definite cons that you may not be aware of. These include . . . 

A Larger Down Payment

The down payment to purchase developed land is typically around 15% – 25%. However, this average doesn’t hold when it comes to raw land because there’s more of a risk to the lender. . . . Raw land is more of a ‘TBD’ investment – to be determined. Because of this, you can expect to pay a higher down payment on the loan, up to about 50%.”

Zoning Restrictions

The local zoning laws dictate how you can use your land. “They can vary by location and could end up limiting or ruining your intended purpose for the land.”

Costs for Permitting

Permits are basically official permission and evidence of that from the local government that will allow you to build on your raw land in New Jersey. You may have to obtain and pay for several permits, including for a septic system and a well.


“An easement allows another person or organization the right to use the property for a specific purpose. You’ll want to make sure the property doesn’t have any easements and, if it does, that you’re OK with the access that’s granted and that it won’t impede on your plans for the property. You’ll also want to make sure the undeveloped land you’re thinking of buying isn’t landlocked, meaning it’s surrounded by property owned by others and doesn’t have access to things like a main road or utilities.”

3. The Land Search Can Take a Lot of Time and Effort

Finding the right parcel of raw land in New Jersey to build on can eat up a lot of time and effort, more than many people are prepared for. It’s just not as easy to find the right raw land on listing sites as it is to find a home.

The search will include, among many other tasks . . . 

  • Asking around about potential properties
  • Digging through expired listings
  • Driving around to look at potential properties
  • Researching potential lots/parcels and culling the ones that aren’t a good fit

You can, of course, expedite the process and make it much easier by working closely with an experienced New Jersey agent. To discover more about how an agent can assist you in your search, just call 855-966-DEAL.

4. You’ll Need to Research and Vet the Land

Searching for raw land in New Jersey to build on also means that you will have to research and vet potential properties. According to industry prose, “[j]ust finding a plot of land in a desirable area isn’t enough. You’ll want to do plenty of research to ensure the land will allow you to build what you want in a cost-effective manner.”

Here are the four main things you’ll need to carefully look into . . . 

  • How the land is zoned
  • Availability of utility hookups, including water, power, cell service, and sewage/septic
  • How much land preparation will be needed and what it will cost
  • How much time you have for the necessary work

So Get the Assistance of an New Jersey Agent

Despite the many challenges involved in finding and building on raw land, it remains the best course for many people – if they have the professional assistance they need. Finding and buying raw land is a very different animal from buying an existing home. And that’s why you can benefit from the services of an experienced New Jersey agent. So if you’re considering building on raw land in New Jersey, be sure to contact us 855-966-DEAL.

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