---
title: "Buying Land to Build a Home in Richmond VA: What You Need to Know"
url: https://www.danielyoonrealty.com/blog/buying-land-build-home-richmond-va/
date: 2026-04-27
modified: 2026-04-28
author: "Daniel Yoon"
description: "by Daniel Yoon | eXp Realty | Richmond, Virginia Buying land and building a custom home in the Richmond, Virginia area is a real option if you cannot find what..."
categories:
  - "Buyer Resources"
  - "Guides"
tags:
  - "Land"
  - "new construction"
image: https://www.danielyoonrealty.com/wp-content/uploads/2026/04/featured-1249-1024x536.jpg
word_count: 541
---

# Buying Land to Build a Home in Richmond VA: What You Need to Know

*by Daniel Yoon | eXp Realty | Richmond, Virginia*

Buying land and building a custom home in the Richmond, Virginia area is a real option if you cannot find what you want in existing inventory. Buildable lots are available in Hanover, outer Chesterfield, Goochland, and parts of western Henrico. Prices range from $50,000 for a rural lot to $300,000+ for premium locations. Here is how the process works and what most people get wrong.

## Where to Find Buildable Lots

- **Hanover County:** Most available lots. 1 to 5+ acre parcels from $75,000 to $200,000. Good for custom builds with space.
- **Goochland County:** West of Richmond. Larger lots, rural setting. $100,000 to $250,000.
- **Outer Chesterfield:** South and west. Developing areas with lots from $60,000 to $150,000.
- **Western Henrico:** Very limited. Infill lots when available: $150,000 to $300,000+.

## What to Check Before Buying Land

- **Zoning:** Confirm the lot is zoned for residential construction. Some rural lots are zoned agricultural.
- **Utilities:** Is public water and sewer available? If not, you need well and septic, adding $15,000 to $30,000 to your costs.
- **Soil test (perc test):** Required for septic system approval. If the soil does not perc, you cannot build with conventional septic.
- **Topography and drainage:** Steep lots cost more to build on. Poor drainage creates foundation risks.
- **Easements and restrictions:** Check for utility easements, right-of-way access, and deed restrictions that limit what you can build.

## Cost to Build in Richmond

- **Standard construction:** $150 to $200 per square foot
- **Mid-range custom:** $200 to $275 per square foot
- **High-end custom:** $275 to $400+ per square foot

A 2,500 square foot custom home at $200/sq ft = $500,000 construction cost plus land. Total project: $575,000 to $700,000 depending on lot and finishes.

## Financing Land and Construction

You cannot use a standard mortgage to buy land. Options include:

- **Land loan:** 20% to 50% down, higher interest rates, shorter terms
- **Construction-to-permanent loan:** Covers land purchase and construction in one loan. Converts to a standard mortgage when the home is complete. This is the most common approach.
- **VA Construction Loan: **The most common version is the **VA One-Time Close (OTC) Construction Loan**, also known as a **VA construction-to-permanent loan**. The biggest hurdle for the VA Construction loan isnt borrower qualification. Its lender availability. many VA lenders only do the permanent mortgage side and don’t handle the construction phase.

a workaround for most veterans that use is getting a conventional short-term construction loan to buy the lot and build, then refinance into a standard VA loan once the home is complete (2-close-path).

## FAQs

### How much does land cost in the Richmond VA area?

$50,000 to $300,000+ depending on location, size, and utilities. Hanover and outer Chesterfield offer the most affordable buildable lots. Western Henrico lots are scarce and premium-priced.

### How long does it take to build a custom home in Richmond?

9 to 14 months from permit to completion for a standard custom build. Add 2 to 4 months for design and permitting before construction begins. Plan for 12 to 18 months total from land purchase to move-in.

**Want to build custom?** Call Daniel Yoon at (804) 896-2694. I help buyers find the right lot and connect with trusted local builders and lenders.

## Related Articles
- [Church Hill Guide](/church-hill-richmond-va-neighborhood-guide)- [Insurance Guide](/richmond-va-homeowner-insurance-guide)- [Buying Land Guide](/buying-land-build-home-richmond-va)- [Agent vs iBuyer](/real-estate-agent-vs-ibuyer-richmond-va)- [Closing Costs](/closing-costs-virginia-explained)