The housing market has been scorching in Colorado for the past few years. The state has experienced significant population growth, impacting its real estate inventory. As of the end of 2021, the median home prices have increased by 16%
compared with the prior year. While the number of Vail luxury homes and Avon houses sales may decrease when mortgage rates increase later this year, the demand for Colorado homes will remain high. Considering this, it’s easy to see why people are buying land in Colorado and commissioning their own homes built.
Investing in land has its considerable advantages as the buyer has the freedom to decide exactly the type of home they want to build. Whether you intend to develop your land into a primary residence, rental property, or vacation home, an empty plot of land bursts with potential.
While some are certain buying land is the right path for them, others are hesitant to get involved. Let’s take a look at some of the factors to consider when buying land in Colorado for residential construction.
There are some essential things to know before buying land. Avon houses and Vail luxury homes don’t appear overnight — constructing a home takes time and money, so make sure you’re ready to commit to both before making this investment.
Additionally, be sure to familiarize yourself with local zoning laws
. These laws can restrict what you can do with the property, including building there. In some cases, you can build a structure that wouldn’t usually be allowed under conditional use provisions, but it’s wise to confirm beforehand.
It’s also essential to assess the land’s terrain — if it’s rugged, anticipate more work and time to build the home’s foundation. Take note of the closest water and electricity
sources, as it’s much easier to hook up these utilities than to pay to have them run to your property.
Where to buy land in Colorado
Colorado is full of beautiful locations, so it can be challenging to choose where to buy land. From the mountains of Vail to the valleys of Avon, the Centennial state offers residents stunning scenery and plenty of fresh air.
If luxury homes in Vail are your style, take inspiration from their Swiss-inspired or contemporary styles when you build your own home. Homes in Edwards showcase sprawling, luxurious designs which you can put your twist on when you buy land and build your home.
You can buy plots of land in all sizes, from under one acre to upward of seventy in Edwards, so the sky’s the limit on the size of your home. You can also build Avon houses upon large parcels of land, and the town offers trails, festivals, and water sports on the lake in addition to views of its signature mountains.
Price of land in Colorado
Depending on the size and location of the lot, land prices in Colorado have a wide range. Areas with sloped land and rugged terrain tend to sell at lower prices as more work needs to be done before a home can be built.
In Edwards, you can purchase about one reasonably flat acre of land for less than a million dollars. In Avon, a flat two-acre parcel sells for just under two million. The more acres of land you’d like to buy, the more it will cost. If you’re taken with a particular location and are willing to put the time and money into resurfacing rugged terrain, you can score a great deal on a parcel with some slope to it. Many homes in Avon and Edwards all had their start on empty plots of land, so it’s clear that it’s worth the work.
Property taxes on land
While homeowners are no strangers to property taxes, the land is specially taxed. In the state of Colorado, empty land carries a 28% tax. Once you’ve built your home, that tax rate will decrease, but keep in mind the longer you hold out on construction, the longer you’ll pay this hefty tax.
Luckily for homeowners, Colorado is home to some of the lowest property taxes in the nation. Once your home is built on the land, you’ll likely pay less than one percent of your home’s value in property tax each year. Before you choose and buy a piece of land, make sure you have a plan to build so you can rid yourself of the 28% tax as soon as possible and settle in at a much more reasonable rate.
If you’re looking to buy property in Colorado, land can be an exciting alternative to buying a pre-built home. Many Vail luxury homes and Avon houses started as a parcel of land — with capital, time, and effort, your piece of land can become one of them as well.
Whether you’re looking to construct your own home or consider pre-built homes for sale in Vail Valley, contact Caroline Wagner
today for expert assistance. Caroline and her team are well versed in the sale of local properties and parcels of land
and can help you through each step of the process to ensure your acquisition is as smooth and easy as possible. Contact Caroline
today to get started!