Bringing Utilities to Vacant Land in 2021? 11 Things You Must Know

Perhaps you have found a parcel of land for an incredible price and are wondering how anyone could “give” away their land.

But if there’s one thing that land developers know, it’s that it’s wise to budget more for developmental costs and fees than for purchasing the land itself.

Depending on the land you purchase, the site development costs can differ drastically.

One cost, in particular, that should never be overlooked is that of bringing utilities to a piece of real estate that has no existing utilities.

Because most people want basic services on their property (power, water, etc.), purchasing land that has no utilities means you’ll need to oversee this development.

Here are 11 things that you should know about the process.

1. You can check beforehand if your vacant land has utilities

How do you know if your land has utilities or not?

First off, you’ll need to know your street address.

Then, you’ll be able to do a search online or make a couple of phone calls.

This is one of the most important steps in your due diligence process because it will help determine how much it is going to cost you to build on the lot.

A few things to keep in mind:

If you’re purchasing rural vacant land, your chances of having public utilities available are not as high as when you’re purchasing land in a more residential area.

If the parcel doesn’t have an address, you can use the county’s GIS maps to figure out the name of the road your lot fronts as well as nearby intersections and addresses.

Please note, you’ll need to know the assessor’s parcel number in order to search for a parcel in the county’s GIS system.

You can use a resource like MapRight to find the boundary coordinates and the assessor’s parcel number for the property.

If you are interested in a Mapright subscription, you can use our referral link.

Once you have the property’s address or assessor’s parcel number and GPS coordinates you can then research whether public utilities are available:

For water and sewer:

You can call the county’s Planning and Zoning Department or the Building Department for information on whether the area is served by the public system.

For power:

You can search on Google Maps for “[county name] power.”

After you find the name of the company, can and ask if they have power lines on the road in front of your lot.

If they don’t provide services to your potential property, then you can ask whether they know if another company serves the area.

You can also give the county Planning and Zoning Department a call to see if they can tell you the right company to call.

2. “Nearby” is a relative term

You may be told while you are looking at parcels of vacant land that there are “nearby utilities” (even if they are not on the property).

However, “nearby utilities” is a relative term, and you should exercise caution when told this.

For one, it’s incredibly vague.

Nearby doesn’t tell you how far the nearest utility lines are.

You may find them right across the street, or they may be miles away.

You should always make sure you know exactly where utility access is before you purchase.

Just knowing that “utilities are nearby” isn’t good enough when buying land.

It can be incredibly expensive and time-consuming to install – you want to make sure you have the full picture before investing.

3. The cost will depend on your location

This is often the most popular question with any type of investment.

How much will bringing utilities to the land cost me?

Well, the short answer is that it depends.

Utility costs can be anywhere from $10,000 to over $30,000 depending on your location and proximity to public utility connections.

Furthermore, some cities and power companies charge more for their services.

This means that the only way to know how much it will cost you is to get an estimate from your local services or a local contractor (if public utilities aren’t available).

That said, if you’re looking for a ballpark estimate, the following may be helpful.

Power

The local utility company should be able to tell you where the nearest power lines are.

Do not depend on the seller of the property or the agent you’re working with to give you a definite answer (although they may have some knowledge).

Again, be wary of “nearby” as this is all relative.

In most cases, utility companies will charge you for every foot they have to extend a line to your property.

For example, the Tierra Grande subdivision in Valencia County, NM quotes $20,000 for every 1/2 mile.

For this reason, it’s wise to know what “nearby” means.

There is a huge difference in cost between having power lines right next to your property and having them miles away.

If you don’t have a few extra thousand dollars to spend if the power lines end up being farther than expected, then this may not be a project that you want to take on.

It’s also wise to know whether or not the lines are on public property or private property.

If the lines are on private property, then you may need to seek permission from whoever owns that property.

Water

The majority of homes in the United States are serviced by a municipal system.

In general, this is the easiest and cheapest way to get your water.

Having said that, even if you do have access to municipal water, it’s not as easy as calling the county and asking them to connect you.

It does take some time and effort to get the water you need since you will be required to install a hookup to the water main (unless this has already been done).

Between all the procedures, permits, and requirements, it could be a few hundred to $5,000 before you get water on your land.

Why?

Because, simply put, nothing in life is free.

Also, if you are looking at a property outside of the area serviced by the municipal water system, you will likely be drilling your own well.

And well installation can be expensive.

You may invest anywhere from $2,000 to $25,000, depending on how deep you need to go.

So, it is probably a good idea to discuss the potential cost of a well with a well installer or general contractor before purchasing the property.

It is also important to note that some states require that you own water rights to the property before you can install a well.

Worst case scenario, there are options for getting water without a well.

Sewer or septic tank

Depending on your location, you will either need to connect to a municipal sewer main or install a septic system.

As with public water, when you hook-up your lot to a municipal sewer main, you will need to pay for the connection.

So, it’s not free.

The alternative is septic should your property not be served by a public sewer system.

It’s worth noting that the costs of operating an independent septic system are often low compared to the monthly fee you’d pay for a sewer connection.

That said, the cost of installing a septic system can vary widely.

For more advanced septic systems, you can pay as much as $20,000.

For a simple, basic tank system, you can pay as little as $3,000.

The exact system you will need depends on the results of a perc test and local regulations.

Thus, there are often a lot of decisions to be made based on what you want and what’s most appropriate for your land.

Other utilities

Satellite television, internet, and cell phones are so necessary these days that these services are available in even the most remote areas.

You’ll likely find there is a company available in your area, and they may even be bundling the cost of all three together.

In this case, you may be best off finding out what others in your area are using and find reliable and price effective.

This way, you’re sure to have a service that is affordable and accessible in your given area.

4. Municipal water may not be an option

As mentioned above, municipal water and sewer isn’t an option for every single property.

City and residential properties are much more likely to have municipal water hookups.

This means that if the thought of installing a septic tank or digging a well just isn’t up your alley, then you may want to avoid those incredibly rural parcels of land.

5. You may need approval from your neighbors

You’ve likely heard about easements and done your due diligence to see if you need one for access to the lot.

If you don’t know what an easement is, you can watch our video below to learn about them.

Well, bringing utilities to vacant land may also require an easement.

Sometimes you need permission from your neighbors to install power poles and lines or other elements in the utility process.

Knowing that someone else could be a barrier to your ability to do what you want with your property may make it difficult

6. Don’t forget to check the quality of your water source

If you choose to install a well, you must check the quality of your water source.

The CDC recommends that all well water be tested regularly, so you can make this an annual occurrence in the spring.

This is often a good time because you can check whether there are any mechanical problems or other issues that have developed over winter.

Check to see whether your water tests positive for total coliform bacteria, nitrates, total dissolved solids, and pH levels.

It’s necessary to check continuously as water can be impacted by the soil composition, surrounding land use activities, and overall rain and groundwater quality.

If your water source is determined to be unsafe for any reason, be sure to treat it in a timely manner so that you can continue to use it in a safe manner. 

7. Look at all of your options for electricity

Just like municipal water is often the most convenient option, so is connecting the local power company’s grid.

However, while it may be the simplest and most convenient option, it isn’t always the best.

Or the least expensive.

When you look at your specific property, you may discover that it’s not the right option for you.

You may also decide that you need a back-up system if you are in an area prone to blackouts.

Remember to keep the following questions in mind…

Will power lines run overhead or underground? In either scenario, you may need to discuss this with neighbors if lines cross over into their property.

How far will the power company need to run lines to connect my parcel to power? How much will this cost?

Is this area prone to brown or blackouts?

How many transformers will you need?

Will you require a backup generator?

What do local building regulations require? Am I allowed to use off-grid power?

It may also be worth considering whether you should look into alternative power like wind and solar.

Just because a local power company is available doesn’t mean they are the best option for your land.

Do the research before purchasing to ensure you know what will be best when bringing utilities to the vacant land.

8. A septic system requires space

In addition to money, a septic system requires a decent amount of space.

Depending on how much land you purchase, this may be a factor in the decision of whether or not you opt to connect to a local sewer system (if you have the option).

Once you install a septic tank, you won’t be able to build or drive in this area.

It’s also worth noting that almost all land is subject to state and local laws governing the installation and maintenance of septic systems.

This is because failing septic systems are a major source of water pollution.

You want to make sure that your water remains clear of any bacteria infiltrating nearby water supplies and does not impact water supplies for those around you.

If you want to know how much land you need for a septic system, you can check out our post on whether an acre is big enough.

9. Remember, it will take quite a while

Utilities can take more time than you think to install, and you won’t necessarily be in charge of the timeline.

You should expect that your utility connections will take months at the very least.

You’ll need to go through the process of getting permits, which can take weeks and months on their own.

When you’re thinking about the timeline of this process, factor in delays.

By doing this, you’ll avoid disappointment.

You should also look at how different approaches may impact the timeline.

For example, depending on your property, you may have to run underground lines instead of overhead lines.

This will both cost more and take longer.

This means it could be months before you have power on your property.

If you do not have to go this route and can run the lines overhead, you still may need to get permission from your neighbors to add power poles on their property.

Add weeks for this agreement to take place.

Either way, you’ll want to be realistic about how long bringing utilities to a parcel of vacant land can take.

Those who think that adding utilities can be done on their own personal timeline often don’t understand how the process works.

10. Bringing utilities to vacant land can be a major expense

You’ve heard it, you’ve read it, but it never hurts to read it again.

If you don’t have extra time or money (upwards of $30,000) to invest in utilities for your new parcel of land, then this likely isn’t the right lot for you.

And that’s okay!

You don’t have to commit to bringing utilities to vacant land if it’s an expense that won’t be worth it in the end.

However, many vacant landowners have found a perfect parcel of land that just happens to be lacking utilities.

If they’re given the land for free or get an otherwise great deal on it, then investing money in it may be the right move.

You may also just want to use the property for recreational purposes.

It ultimately depends on you and your specific set of circumstances.

You can find more ways to get cheap land in our video below:

11. You’ll have a lot of decisions to make

One of the most important things to know when buying vacant land with no utilities is that it’s not a quick and easy process.

You’ll need to spend all of the normal time doing due diligence and then spend additional time and effort with the property as the utilities are being installed.

You’ll also need to make a lot of decisions, including:

Should you connect to the local sewer system or install a septic system?

Is there municipal water?

Should you dig a well?

How far are the power lines?

Will your neighbors let you put a power pole in their yard?

How can you best utilize your land if you need a well or septic system to be in a certain spot?

What laws do you need to keep in mind?

How will you ensure that you maintain a water testing schedule?

The list of questions goes on!

Ask yourself, “Is this the perfect plot of land?”

“Do I need utilities?”

“Do I have the time and money to invest in a project of this size?”

If the answer is an unequivocal yes, then go for it!

Final thoughts

Bringing utilities to vacant land is no small task.

You’ll start the process by doing a lot of due diligence.

At that point, you’ll survey what exactly your property needs.

Are you close enough to a city that you have access to sewage and municipal water?

Or is your vacant land rural enough that you’re looking at a septic system and digging for a well?

Unfortunately, there’s no “one-size-fits-all” solution when it comes to bringing utilities to vacant land.

It requires a lot of time, effort, research, and money.

Yet, if you’re equipped to take it on, it can be what transforms your property from a “great” parcel of land into the “perfect” parcel of land. 

For more information on buying, selling, or investing in vacant land, check out our other resources below.

We’re here to help throughout the entire land buying and selling process!

If you are looking to buy affordable land, you can check out our Listings page.

one-dollar-buy-landIf reading this article got you interested in land investing, you can check out our article on How to Get Started in Land Investing.

learn-land-investingAnd if you are looking to sell land, visit our page on how to Sell Your Land.

If you are looking for Free Land, check out our free land giveaway.

Disclaimer: we are not lawyers, accountants or financial advisors and the information in this article is for informational purposes only. This article is based on our own research and experience and we do our best to keep it accurate and up-to-date, but it may contain errors. Please be sure to consult a legal or financial professional before making any investment decisions.

 

 

 

10 thoughts on “Bringing Utilities to Vacant Land in 2021? 11 Things You Must Know”

  1. I’m so glad i found this website!! this article was very easy to read and understand. i hate long articles that have a small amount of relevant information at the end of the article. this is very informational and has helped me understand the steps and the questions i need to start looking for land. this is my first time purchasing and i had no clue where to start. utilities are the biggest concern i have because of budget. i’m terrified of buying something that will require too high of an investment and being unable to continue my project. do you have any advise on choosing the type of land that can serve the purpose of a vacation home as well as being able to rent it when i’m not there? i’ve been struggling to figure out what to look for as far as zoning. any information will tremendously appreciated!

    Reply
    • Hello Melissa, I’m very glad that our article was helpful! Unfortunately, I can’t offer any concrete advice, but I do always recommend giving the county/city building and/or zoning department a call to go over their land use and building regulations. I would also pay attention to any HOA regulations, especially if you are looking to rent the house out while you are away.

      Reply
  2. My HUSBAND had been ill, since his thirties. We haD one child & adopted 4 more, one having cerebral Palsy. Im trying to provide her with a permit home, sinCe we haD to move a lot. I was looking at land to put a new manufacturer home. My husband passed away at 54. I grieved for years & loss my job. My daughter & I had to move in with my Oldest son. I want to give my family a senSe of security, by having a home to come to & see mE & my daughtEr. I thought i could do it, but After reading the article, it would be more than i could affoRD. I was devastated, when i saw the dream vanIsh, since i COULDN’T afford the laNd & GETTING the Utilities connected. I have noT been well & i really wanted this for my daughter.

    Reply
    • I’m so sorry to hear about your losses, Donna. I do hope that you are able to find a home for you and your daughter.

      Reply
  3. Hi I am a RECENTLY widowed 44 mother of six and when my husband passed away i was left with taking on the work of our property that we own in california we have been living in our property for years now and getting electricity from a friend but we can No longer do that anymore as they have sold Their property so i have been doing research on how much it is going to cost me to get the electricity coming to my place and i have found out that it is not cheap i am on disability and I use medical equipment that requires electricity i was wondering if there is any kind of recourses that might help with the cost of getting the electricity to our property?

    Reply
    • Hello Denise, I’m afraid that I am not enough of an expert to be able to point you toward specific resources. Have you tried giving the county or local utility company a call to see if they have any assistance programs available?

      Reply
  4. Dear Erika It’s going to cost me around anywhere from $10.000 to $30.000 to get electricity coming to my property i live here with my son and daughter and my three grandkids age’s 8,6,5 my son is 24 and my daughter 16 i am disabled and recently widowed my husband passed away in August of 2020 i have nowhere else to go and no family members to help me out i am in fear of being without electricity and losing my daughter and grandkids i am so desperate right now i wish i knew of somewhere to get help maybe with financing to get electricity on a payment plan or some kind of organization with fund’s available to the low income. My husband was seriously ill for many years and we spent our time caring for him and was unable to put money aside now that we’re just trying to get back on our feet we are putting money on the side to save up for electricity but i am in constant fear that today will be the day that they cut off the lights

    Reply
    • Hello Denise, I’m very sorry, but I do not know of any loan programs off the top of my head. You may want to check with your local county and/or utility company to see if they have programs for low-income families. It’s possible there may also be a nonprofit in your area that could help you install solar or another alternative system. I’m sorry I could not be of more help, but I do hope that you are able to find the resources you need.

      Reply
  5. I am in the preliminary stages of my research for buying a lot in AZ. I have called the county planning & zoning department already, but that was just dipping my toes in the water. Now that I have the knowledge from this article, I know what questions to ask! So glad I found this. Thank you for the guidance.

    Reply
    • I’m so glad our article was helpful, Stacey. Best of luck with your research!

      Reply

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