Land Mistakes That Could Cost You Big (And How to Dodge Them Like a Pro)

Buying raw land and building from scratch can give you a serious advantage as a real estate investor. Tiny home dreams, off-grid living, more location options—what could go wrong?

So, so much.

So we’re breaking down the most costly mistakes people make when buying land (for cheap). And more importantly, how to sidestep them like a real estate pro. Don't turn into another cautionary tale. Learn from these mistakes and build the right way.

1. Chasing Cheap Land and Ignoring Utility Access

We get it, buying cheap land means more profit. Who cares about utilities? You’ll sort that out later, right?

In reality, the cheapest land usually comes with the most expensive problems. No power, no water, no sewer. Translation: your $5K steal turns into a $100K+ money pit real quick.

Always follow the power lines and check if there are utilities nearby. And by “nearby,” we mean really nearby.

Need a well? Budget generously—you might spend thousands drilling only to hit a dry spot. And without access to city sewer, you’ll need septic—and not every property can handle it.

2. Trusting the Seller Instead of the County

Memorize this: Call the county, not the seller.

Sellers and real estate agents might not disclose critical zoning rules, building restrictions or ugly little surprises like illegal mining operations (true story). These are all things the county will actually know about.

Desperate sellers will say anything to get you to sign on the dotted line. The lesson: Don’t believe everything you hear in the sales pitch.

Get your info straight from the planning and zoning departments. And if you can, go there in person. People are much more helpful when you’re not just a voice on the phone.

3. Buying Sight Unseen (or Only From a Pretty Listing Photo)

Before you buy, drive the last mile yourself. Don’t trust listing photos, no matter how good they look. Those Instagram-worthy pictures could be hiding washed-out mud roads with no legal access.

Ask yourself: Can trucks actually reach the site for construction? Are the access roads in good condition? Nothing kills a 5-star guest experience faster than getting towed out of your Airbnb.

Better yet—get a professional land survey. A survey gives you a clear understanding of the property’s exact size, boundaries and any encroachments. You’ll get a heads-up on access issues and “surprise!” utility gaps long before they sabotage your plans.

4. Ignoring the "Neighbor Factor"

So many hosts forget this one. You could do everything right—research, permits, zoning—and still get blocked by one neighbor who can’t stand your tiny home village.

Meet the NIMBYs (Not In My Backyard-ers). All it takes is one complaint to trigger a county investigation or outright shutdown. Even if you’re playing by the rules.

Talk to the neighbors early. Introduce yourself. Share your plans. Sometimes, a simple “Hey, I’m building something cool” can stop the drama before it starts.

5. Skipping Environmental and Soil Testing

Soil contamination, unstable ground, poor drainage, or protected wetlands can make building a nightmare—or even impossible.

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Before you buy:

• Do a soil test (especially if you’re adding septic or foundations)
• Check for flood zones, wetlands and environmental restrictions
• Factor in cleanup or grading costs if needed

This won’t apply to everyone, but it’s especially critical if you buy in rural or former industrial areas.

6. Forgetting Future Development Plans

You found your slice of heaven in a remote scenic location. But how long will it stay that way? Have you looked into future changes and developments?

Experienced real estate property developers always research:

• Upcoming highways or construction zones
• New schools, parks, or commercial centers
• Zoning changes and long-term development plans

A peaceful property today could be next door to a noisy highway or industrial site tomorrow.

On the flip side, investors can also use these plans to buy early near new parks or hotspot locations. A future equity boost.

7. Failing to Budget for Total Costs

So you’re buying land in Texas and you’re convinced the price of the plot is just the sticker price. Maybe you're planning on trying out prefab homes to lower construction costs too.

It's not that simple. The listed price is only a fraction of the true cost of the land.

You also need to budget for:

• Site prep and grading
• Permits and inspections
• Wells, septic, roads and utilities
• Taxes, insurance, HOA fees

And if you're financing, banks and lenders can get nervous about off-grid properties. No sewer + no power = no loan (most of the time).

Create a full budget with every possible cost—then add a 15–20% buffer. Preparing land will always cost more than you think, especially if it's your first time.

Many dream projects stall indefinitely because of a bad budget. Don't let that be you.

8. Falling for the Steep Land Trap

That $10K cliffside lot with “insane ocean views” looks dreamy…

Until you realize you’ll need a $300K engineered foundation to build on it.

If it’s steep, don’t take the leap. Building on steep land promises expensive foundations, tricky special access roads and stricter permitting rules. Save yourself the stress and stick to flatter land.

9. Rushing the Decision

Enthusiasm is great. But impulse-buying land? Not so much.

Buying raw land is a huge commitment. Don’t let a “limited-time deal” pressure you into skipping your due diligence. Visit the property, talk to professionals and ask lots of questions. Verify the actual value of the land before anyone convinces you it’s a “bargain”.

Need a second opinion before you buy? Post your questions in the FREE Airbnbesties group. You'll get real feedback from fellow hosts and land buyers who’ve been there.

How to Avoid Costly Land-Buying Mistakes Like a Pro

✅ Follow the power lines—Check utilities first, dream second.

✅ Call the county—Get official answers before you commit.

✅ Drive the last mile—See the land with your own eyes.

✅ Vet road access and infrastructure—Make sure trucks (and guests) can get there.

✅ Talk to the neighbors—Build good relationships early.

✅ Test the soil—Look for stability, water and environmental red flags.

✅ Check development plans—Avoid future surprises.

✅ Budget beyond the sale price—Plan for utilities, permits and other sneaky costs.

✅ Avoid steep land—Unless you're loaded (and extremely patient).

Why Raw Land Still Rocks (If You Play It Smart)

Buying land can give you a major edge as a short-term rental host or real estate investor. You have the opportunity to build a one-of-a-kind stay in a location people will beg to visit.

But land isn’t foolproof. It has quirks, pitfalls and legal traps that can cost you serious time and money.

Do your homework. Get the right team. Lean on your community. Then be bold and go for it.

Ready to build something epic?