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.