Buying Land to Build in Austin: The Complete 2026 Guide
Lot Evaluation Checklist
A step-by-step checklist for finding, evaluating, and buying a lot for your custom home in the Austin area.
Finding and evaluating land for a custom home in Austin requires understanding zoning regulations, environmental restrictions, utility availability, and dozens of technical details that don't appear in real estate listings. Many buyers discover expensive surprises only after closing—protected trees that restrict where homes can sit, impervious cover limits that shrink building footprints, or deed restrictions that override city zoning entirely.
This guide provides the same three-phase evaluation process Mission Home Builders uses when helping clients select buildable lots across Austin, the Hill Country, and surrounding areas. Whether you're searching for land in Tarrytown, evaluating a teardown opportunity in Allandale, or considering acreage in Barton Creek, this checklist helps you identify red flags early and avoid costly mistakes.
How to Use This Guide
Choosing the right lot is one of the most important steps in building a custom home. A property can look perfect on a listing or even during a quick drive by, but behind the scenes there are zoning rules, setbacks, utilities, tree regulations, and dozens of details that determine what you can actually build. This guide gives you a clear, step by step way to find lots, evaluate them, and avoid costly surprises.
The guide is organized into three simple phases, the same method our team uses when helping clients choose the right lot. You can follow the phases on your own, but we will do all of this for you. Complimentary. This is part of what we do for every custom home client.
Phase One helps you find potential lots and build a shortlist.
You will set your budget, estimate the minimum lot size you need, search for properties, and apply simple filters that tell you whether a lot is worth visiting in person.
Phase Two helps you evaluate a lot on site.
This phase covers what to look for when you walk the property, including slope, trees, power lines, and the overall feel of the street. We strongly recommend bringing a builder for this step. We offer complimentary site visits for clients who are considering a lot.
Phase Three is the full due diligence during the option period.
This phase covers zoning, setbacks, impervious cover rules, utilities, overlays, deed restrictions, and the detailed checklist. These items confirm whether the lot is truly buildable and whether it fits the home you want to create. Our team handles this entire phase for you and works directly with agents or sellers to gather all needed documents.
Each phase includes clear checklists, simple explanations, and spaces for notes so you can track everything as you go. You do not need to be an expert to use this guide. You can follow it on your own, or rely on us to take care of the process from beginning to end.
Mission Home Builders evaluates lots regularly and knows exactly what to look for. Our team can:
• Help you find the right lot
• Evaluate any lot you are considering before you make an offer
• Review a lot you already own to confirm what is buildable and what to expect
• Walk the site with you and identify issues that are hard to see online
• Handle all due diligence in the option period
• Work directly with your realtor or connect you with one of ours who specializes in land
Even with this guide, nothing replaces a professional feasibility review. If you are serious about a property, we can walk the lot with you, run the calculations, review documents, and give you a clear picture of what is possible.
Use the guide at your own pace, and when you are ready, we are here to make the process simple, clear, and stress free.
Understanding Cost Per Square Foot
Phase One:
Phase One: How to Find Buildable
Lots and Create Your Shortlist
Phase One helps you find potential lots and narrow them down before ever setting foot on the property. This phase includes setting your budget, determining the minimum lot size you need, searching for options, and running the first round of quick filters to eliminate lots that will not work. Buyers can complete Phase One on their own, and we can also do all of this for you as part of our process.
1. Set your lot budget
Before searching, determine how much you can spend on land.
Here is the general rule of thumb:
• Your lot should cost about 25 to 40 percent of the final home value.
• Aiming for roughly 33 percent or less is ideal.
You do not need to know the exact future market value. Use your total project budget as a placeholder.
Simple formula:
Lot budget = Total project budget × 0.40 (for maximum)
Example:
Total project budget: $1.8 million
Ideal land budget: less than $720k
This does not need to be perfect. This range keeps your build balanced and prevents the land from consuming too much of your budget.
2. Estimate the minimum lot size you need
You do not need to know every zoning detail. Use this simple formula for Austin.
Simple formula:
Minimum lot size = Desired home size ÷ 0.4
This uses a 0.4 FAR assumption, which is conservative enough for most Austin neighborhoods.
Example:
3,000 ÷ 0.4 = 7,500 sq ft minimum lot size
• For a 3,000 square foot home, look for lots that are 7,500 sq ft minimum.
• Ideal size: 8,000 to 9,500 sq ft for more flexibility.
• Outside Austin city limits you may need a larger lot if septic is required.
Remember this one formula and you will avoid wasting time on lots that are too small.
3. Start your search
Once you know your target lot budget and minimum lot size, begin searching for properties on Zillow, Redfin, Realtor.com, etc.
Filter for:
• Preferred locations
• Lot price within your budget
• Minimum lot size based on your formula
Important:
It does not matter whether the listing is:
• a vacant lot
• a newer home
• an older home that looks outdated
Many of the best buildable lots in Austin have old homes on them. You are buying the land, not the existing structure.
If you want more accurate results:
We can run an MLS search for you, including off market opportunities
4. Create your shortlist
After filtering for location, budget, and minimum lot size, start browsing the results and looking for properties that appeal to you. This is where you take a closer look at the listing photos, lot layout, street view, and overall feel.
Before adding a lot to your shortlist, run the three Phase One checks:
Phase One Quick Checks
1. Is the lot big enough? Based on your minimum lot size formula.
2. Is the price within budget? Close to or below your ideal target.
3. Is the lot outside the floodplain?
To check the floodplain use one of the following:
• FEMA Flood Map
• City of Austin Floodplain Viewer
• Travis County GIS
If a lot passes all three checks, add it to your shortlist.
This list becomes the group of properties you will actually drive by in the next step.
Phase Two:
Phase Two: On Site Evaluation
(Before making an offer)
Phase Two happens once a lot has passed the basic filters in Phase One and you are ready to see it in person. This is where you walk the property and evaluate the physical characteristics that affect cost, layout, safety, and overall feasibility. Many issues that do not show up online become obvious the moment you are standing on the lot.
We strongly recommend bringing a builder for this step. Mission Home Builders offers complimentary site visits and can walk the property with you to identify potential challenges, early red flags, and realistic build opportunities. This phase helps you decide whether the lot is worth writing an offer on before you enter the option period.
Below is the Phase Two checklist based on what truly matters during an in-person evaluation
1. Topography and slope
[ ] Looks good [ ] Needs more info [ ] Deal breaker
Walk the lot and note whether it’s flat, gently sloped, or steep. Steeper lots often require retaining walls, stepped foundations, or expensive earthwork to level the pad. Driveways on steep slopes can create safety issues in rain, so slope affects both cost and daily usability.
Notes: ____________________________________________________________________________________________
2. Trees and protected tree rules
[ ] Looks good [ ] Needs more info [ ] Deal breaker
Identify large trees on the lot, especially those with trunks 19 inches in diameter or more, which are considered Protected Trees under Austin rules. Heritage Trees are even larger and require special approval to remove or impact. Trees can reduce your buildable area, change your layout, and add cost for arborist oversight and root protection.
Notes: ____________________________________________________________________________________________
3. Overhead lines, clearance, and obstructions
[ ] Looks good [ ] Needs more info [ ] Deal breaker
Look for overhead power lines running across the lot or along lot edges. Austin Energy requires specific clearances from roofs, windows, pools, and trees, which may limit home placement or height. In some situations, lines may need to be buried or relocated at the homeowner’s expense.
Notes: ____________________________________________________________________________________________
4. Drainage and water flow
[ ] Looks good [ ] Needs more info [ ] Deal breaker
Observe the lot after a rain if possible, or look for signs of erosion, low spots, standing water, or water flowing from neighboring properties. Proper drainage is critical for long term foundation health and may require grading, swales, French drains, or engineered drainage solutions. Lots that naturally shed water away from the home footprint are ideal and reduce future maintenance.
Notes: ____________________________________________________________________________________________
5. Existing structures, debris, or hidden conditions
[ ] Looks good [ ] Needs more info [ ] Deal breaker
Check for old slabs, sheds, wells, septic tanks, retaining walls, or buried debris that could complicate the build. These items can require demolition, removal, or special engineering, all of which add cost and time. Even if the lot looks empty, a survey or metal scan may reveal hidden obstructions.
Notes: ____________________________________________________________________________________________
6. Utility Check
[ ] Looks good [ ] Needs more info [ ] Deal breaker
Do a quick visual scan for basic utility access. Look for a water meter box near the street, a sewer cleanout in the yard, an electric meter on the house (for teardowns), nearby transformer boxes, overhead power lines, and a gas meter or shutoff valve. These clues help you understand whether utilities appear accessible before full confirmation in Phase Three. Missing or unclear items are not always a problem but should be noted for deeper review.
Notes: ____________________________________________________________________________________________
7. Street feel and neighborhood comfort check
[ ] Looks good [ ] Needs more info [ ] Deal breaker
Stand on the lot and take in the street. Notice neighboring homes, maintenance levels, traffic frequency, and general feel. The street must work for your long-term comfort, not just the technical feasibility of the lot.
Notes: ____________________________________________________________________________________________
8. Noise levels
[ ] Looks good [ ] Needs more info [ ] Deal breaker
Stand on the lot with everything quiet and just listen. Notice noise from traffic, trains, nearby businesses, schools, dogs, or frequent construction. Remember that what feels “a little noisy” during one short visit may feel very different when you live with it every day.
Notes: ____________________________________________________________________________________________
9. Nighttime lighting and headlight sweep
[ ] Looks good [ ] Needs more info [ ] Deal breaker
Visit the street after dark to see how bright it really is at night. Look for streetlights shining directly into bedroom windows or headlights sweeping across the front of the house as cars turn corners or drive down hills. Good lighting can feel safe, while harsh or poorly aimed lighting can be very annoying.
Notes: ____________________________________________________________________________________________
10. Smells and air quality
[ ] Looks good [ ] Needs more info [ ] Deal breaker
Walk the area and notice any recurring smells such as restaurants, breweries, livestock, water treatment, or standing water. Some smells may be pleasant or only occasional, while others can be constant and frustrating, especially in hot Austin summers. Talk to neighbors about whether any odors are seasonal or tied to specific wind directions.
Notes: ____________________________________________________________________________________________
11. Cell reception
[ ] Looks good [ ] Needs more info [ ] Deal breaker
Check your phone reception in several spots on the lot, inside any existing structure, and in the street.
Notes: ____________________________________________________________________________________________
Phase Three:
Phase Three: Full Due Diligence
During the Option Period
Phase Three begins once you have the lot under contract. This is the most important step in confirming whether the property is truly buildable. During the option period, you will review documents, verify utilities, analyze zoning and overlays, check setbacks and impervious cover, run buildability math, and conduct any needed site studies. This is where the detailed feasibility work happens.
Mission Home Builders handles this entire phase for clients. We contact the seller or agent, gather the documents, run calculations, check utilities, analyze overlays, and confirm everything required to ensure the lot works for your home and budget.
Use the following checklist to track each item during your option period.
1. Jurisdiction and zoning
[ ] Looks good [ ] Needs more info [ ] Deal breaker
Start by confirming whether the lot is inside the City of Austin, in the ETJ (extraterritorial jurisdiction), or in a county-only area. Your jurisdiction affects permitting requirements, utilities, inspections, and rules that apply to your build. Also check the zoning type (SF-1, SF-2, SF-3, etc.), which determines what you can build and what limits apply.
Notes: ____________________________________________________________________________________________
2. Setbacks and build area
[ ] Looks good [ ] Needs more info [ ] Deal breaker
Setbacks are minimum distances you must keep between your structure and the property lines. The plat or zoning code will list front, side, and rear setbacks, which define the buildable footprint. A quick sketch using these setbacks will show you the actual space where a house can legally sit, which is critical for narrow or irregular lots. Setbacks can come from the plat, city zoning, or deed restrictions, and the most restrictive rule always applies.
Notes: ____________________________________________________________________________________________
3. Impervious cover limits
[ ] Looks good [ ] Needs more info [ ] Deal breaker
Impervious cover is the percentage of your lot that can be covered by hard surfaces such as the home, driveway, walkways, patios, and pool deck. In Austin, these limits vary by zoning and location, ranging from as low as 25 percent in sensitive environmental zones up to 45 or 50 percent in standard areas. If you exceed the limit, you may have to shrink your footprint or redesign outdoor elements.
Notes: ____________________________________________________________________________________________
4. Neighborhood overlays or special districts
[ ] Looks good [ ] Needs more info [ ] Deal breaker
Austin has many unique overlays like Neighborhood Planning Areas, NCCDs, Transit Oriented Districts, and the McMansion/Subchapter F rules in central neighborhoods. These can add extra requirements for design, massing, height, or compatibility with surrounding homes. Some overlays even override what zoning would normally allow, so it’s important to verify which apply to your lot.
Notes: ____________________________________________________________________________________________
5. Deed restrictions and HOA rules
[ ] Looks good [ ] Needs more info [ ] Deal breaker
Deed restrictions are private rules that may limit height, exterior materials, minimum home size, garage orientation, or even whether you can build an ADU. If there is an HOA or POA, they may also require architectural approval before you submit to the city. Deed restrictions override city allowances, so you cannot rely on zoning alone.
Notes: ____________________________________________________________________________________________
6. Floodplain status
[ ] Looks good [ ] Needs more info [ ] Deal breaker
Check whether any part of the lot sits in the 100-year or 500-year floodplain using Austin’s floodplain maps or FEMA data. Building in a floodplain may require elevated foundations, special engineering, and higher insurance premiums. If the lot is in the floodway (the highest risk category), building may not be allowed at all.
Notes: ____________________________________________________________________________________________
7. Easements (utility, drainage, access)
[ ] Looks good [ ] Needs more info [ ] Deal breaker
Easements are areas of your lot you cannot build on because they are reserved for utilities, drainage, or shared access. These will show up on the plat, survey, or title commitment, and they can significantly reduce your buildable area. It’s important to understand exactly where they are and how wide they are before designing anything.
Notes: ____________________________________________________________________________________________
8. Water, wastewater, and septic feasibility
[ ] Looks good [ ] Needs more info [ ] Deal breaker
Confirm whether the lot has city water and wastewater available at the street, and whether existing taps or meters are present. If wastewater is not available, you’ll need a septic system, which requires specific soils, setbacks, and an approved design. Septic feasibility can be a deal breaker on small or restricted lots.
Notes: ____________________________________________________________________________________________
9. Electrical and gas service availability
[ ] Looks good [ ] Needs more info [ ] Deal breaker
Determine whether overhead or underground electric service is available and whether the nearest transformer has enough capacity for a modern home. Older areas often need transformer upgrades or new service drops, which can delay construction or add cost. If you plan to use natural gas, confirm whether a gas line exists in the street.
Notes: ____________________________________________________________________________________________
10. Tree Survey and CRZ Impact
[ ] Looks good [ ] Needs more info [ ] Deal breaker
Use the tree survey to identify protected and heritage trees, and calculate CRZ (Critical Root Zone). CRZ overlaps with the potential build area may require redesign or special mitigation.
Notes: ____________________________________________________________________________________________
11. Soil and rock conditions
[ ] Looks good [ ] Needs more info [ ] Deal breaker
Austin soils vary widely, from expansive clay in some central areas to shallow limestone in West Austin and the Hill Country. A geotechnical soil report is required before building and determines the foundation type and cost. Lots with significant clay movement or deep rock can add tens of thousands to the foundation budget.
Notes: ____________________________________________________________________________________________
12. Lot size, shape, and orientation
[ ] Looks good [ ] Needs more info [ ] Deal breaker
Confirm the lot is large enough to support your target home size plus outdoor space such as a yard, pool, or ADU if desired. Irregular or narrow lots can restrict where rooms, windows, and garages can go. Orientation also affects natural light, privacy from neighbors, and which parts of the home get morning or afternoon sun. See the formula in the calculations section.
Notes: ____________________________________________________________________________________________
13. Legal road access
[ ] Looks good [ ] Needs more info [ ] Deal breaker
Make sure the property has legal access to a public right-of-way or a properly recorded easement. An unrecorded driveway, shared road, or “informal” access route can cause major issues with financing, permitting, and future resale. Without proper legal ingress and egress, many lenders will not fund construction.
Notes: ____________________________________________________________________________________________
14. Height limits and stories allowed
[ ] Looks good [ ] Needs more info [ ] Deal breaker
Every zoning type has maximum height rules, and many Austin neighborhoods also have “compatibility standards” that restrict height near property lines or adjacent single story homes. Power lines, view corridors, and tree canopies can also influence what height is realistically buildable. Verify the max height, the number of stories allowed, and whether any step-back rules apply.
Notes: ____________________________________________________________________________________________
15. Historic or conservation restrictions
[ ] Looks good [ ] Needs more info [ ] Deal breaker
If the property is inside a historic district or near a landmarked structure, demolition and new construction may require approval from the Historic Landmark Commission. These areas often limit architectural styles, materials, or changes to the façade. Before planning a teardown, confirm whether a historic overlay applies, because denials and delays are common.
Notes: ____________________________________________________________________________________________
16. Buildability Math Review
[ ] Looks good [ ] Needs more info [ ] Deal breaker
Run calculations for impervious cover, FAR if applicable, the buildable envelope, any tree CRZ overlaps, and driveway placement to confirm the home you want will truly fit the lot.
Notes: ____________________________________________________________________________________________
17. New Construction Activity on Adjacent Lots
[ ] Looks good [ ] Needs more info [ ] Deal breaker
Check city permit records for any new building permits on neighboring or nearby lots. This reveals whether adjacent properties are being developed as single homes, duplexes, or multi unit projects. Understanding what is planned next door helps you avoid unexpected density, height, or privacy issues that could affect long term comfort.
Notes: ____________________________________________________________________________________________
Before You Move Forward
Finding the right lot is exciting, but it can also feel overwhelming when you’re trying to make the best decision for your future home. This guide gives you a clear, thorough framework so you can spot red flags early, understand what matters most, and avoid surprises that many buyers never see coming.
But remember: you do not have to do this alone.
Our team at Mission Home Builders evaluates lots like this across Austin, the Hill Country, and surrounding communities. We know how to quickly identify opportunities, catch hidden issues, and determine what a lot can truly support — long before you invest your time, money, or emotions.
Whether you:
• are still searching for the right lot,
• already have a few options you’re comparing,
• or own land and want to confirm what’s possible,
We can walk the property with you, review the documents, run the calculations, and give you a clear go-or-no-go recommendation.
If you’re working with a realtor, we’ll collaborate directly with them.
If you don’t have one yet, we can connect you with trusted agents who specialize in finding great buildable lots.
Building a custom home starts with choosing the right foundation — literally. With the right guidance from day one, you can avoid costly surprises and start your project with confidence.
If you’d like our team to help you evaluate a lot or guide you through the land search, reach out anytime. We’re here to make this process simple, clear, and exciting.
Next Steps
If you’re reading this guide, chances are you’re serious about building a home that’s truly yours. The next step is simple: reach out to our team and let’s talk about your project.
Whether you already own land or are still exploring your options, we can help you understand what’s possible for your location, budget, and goals. From your first questions to your final walkthrough, our team will guide you through every step of the process.
Fill out the contact form to start the conversation.
We’d love to help bring your custom home in Austin to life.
