Buying raw land or a lot with the goal of building a custom home requires more than liking the view — utility availability will determine feasibility, cost, and schedule. At RKM Homes, a Denver-based custom home builder that designs and constructs on clients’ lots, we’ve seen budget-busting surprises like expensive powerline extensions, septic soil failures, and large municipal tap fees derail otherwise perfect sites. Before putting an offer in, know whether the property is served by municipal water and sewer or if you’ll need a well and a septic system, where the nearest utility mains are located, and what local building and fire codes require for water supply and hydrant access.
Be specific when you investigate each utility. For water: confirm municipal service vs. private well, meter size and location, available pressure, tap fees, and any irrigation district or water-rights issues—wells in Colorado can require depth and yield tests. For wastewater: find out if a sewer main is nearby or if a perc (percolation) test is required for a septic system, and identify suitable drainfield area and required setbacks. For electricity and gas: check distance to the nearest transformer or gas main, whether three-phase power is available (important for shops, EV chargers, or certain HVAC systems), expected trenching or boring costs to bring lines to the house, and meter/service capacity limits. Don’t forget broadband and cell coverage—verify fiber, cable, or fixed wireless options if remote work or streaming are important. Also assess stormwater drainage, culverts or ditch easements, and trash/recycling service availability through the county or HOA.
Take practical steps early: request utility maps and tap fee schedules from providers, order a soil/perc test before contract contingencies expire, and speak with the county planning office about easements, right-of-way, and any required fire-flow or hydrant distances. We regularly coordinate these checks for clients—obtaining utility locate information, soliciting extension cost estimates from providers, and factoring utility work into site plan and foundation design—so potential extra costs and permitting timelines are clear before you close on the land.
Is there a reliable potable water supply on the lot — public water hookup or a viable well?
From my experience building custom homes around Denver, the very first call I make is to the local water provider or district to get a written “will-serve” or availability letter before you sign anything. That letter should state whether a public main is adjacent to the property, the main size, typical static pressure and available fire flow (GPM), meter size options, and exact tap and impact fees. If the main isn’t at the property line, get a budgetary cost to extend the main and install a service lateral — extension projects can run tens of thousands of dollars and add months to your schedule — and confirm any easement or engineering requirements up front.
If the lot relies on a well, treat it like a fundamental site-condition test: obtain the well driller’s log, the State/County permit, and a certified pump test showing sustained yield (GPM) and drawdown over 24–72 hours. Have the water tested by a certified lab for bacteria (total coliform/E. coli), nitrate, pH, hardness, iron/manganese, and arsenic before closing; poor quality may mandate whole‑house filtration, softening, or treatment systems that add thousands to build costs. Also verify power availability and location for the pump, the setback distance from any septic system, and whether local groundwater rules or augmentation plans limit new well use — in many Colorado jurisdictions you can’t assume drilling a new well is allowed without permits.
Plan and protect your purchase: insist on written documentation of water availability as a contingency in the purchase agreement, and ask your builder to price both public-connection costs and a worst‑case well solution so you can compare total costs and timelines. Remember practical follow‑ups: request recent water system maps, ask the district for a recent flow test or hydrant test if you need a fire sprinkler, and budget for annual well maintenance and periodic water testing if you take a private supply. If there’s any doubt about yield or quality, delaying closing until you have test results will save you from surprises that can derail construction budgets and schedules.
Wastewater disposal (public sewer vs. septic system)
How will wastewater be handled on this lot — is there a public sewer I can tie into or will I need a septic system? As a custom home builder I always advise buyers to get a sewer-availability letter from the local municipality or sanitation district before closing. That letter (or utility map/profile) shows where the main runs, the invert elevations, and whether a gravity run is possible or if a pump/grinder station will be required; those details determine whether underground piping is straightforward or will need a pump and electrical supply at additional cost. If the property sits above the sewer main or across a street with no easement, the cost and permitting to extend service can be significant, so don’t assume “close” means inexpensive.
If public sewer isn’t available, will the lot pass a perc/soil test and is there adequate room for a drainfield and its setbacks? I insist on a professional percolation/soil report and a site evaluation by a licensed septic designer before finalizing any lot purchase. Septic systems must meet county health setbacks from wells, springs, property lines, and structures and are sized by bedrooms and soil type — clay or high water table often forces an engineered or mound system that can triple installation costs compared with a conventional gravel drainfield. Make sure the proposed house footprint leaves a designated reserve area for future replacement drainfields and that tree roots, steep slopes, or rock won’t block installation.
What will this decision actually cost me and how should I protect myself in the purchase process? Typical cost drivers are tapping/impact fees, the length and depth of the lateral, whether a grinder pump or lift station is needed, rock excavation or extensive trenching, required easements, and permit/design fees; for septic, add perc tests, engineered designs, and potentially higher long-term maintenance. I recommend conditioning land offers on receiving sewer-availability documentation and a passing perc/site feasibility, budgeting a contingency for unexpected hookup or system upgrades, and engaging the builder or a septic engineer early so the utility strategy is baked into the site plan rather than discovered during foundation work.
Is electrical service available at this lot, what service size will I actually need, and how much will it cost to connect?
From my experience as a custom home builder, the first practical step is to get a written “service availability” or line-extension estimate from the local utility using the parcel number and proposed build location. Ask them where the nearest feed, pole, or transformer is, whether the area is served overhead or underground, and the exact point-of-service location on your property — that determines trench length, need for easements, and whether the utility or the property owner pays for the extension. Don’t rely on visual inspection alone; utilities will provide maps and formal letters that lenders and permitting offices accept, and those letters often include conditions (e.g., easement requirements or transformer upgrades) that can change cost and timeline.
Plan service capacity around realistic loads, not just current needs. For most modern single-family homes I recommend designing for at least a 200‑amp single‑phase main service; larger homes with EV charging, whole‑house heat pumps, or shops often need 400‑amp or three‑phase service. Have a licensed electrician perform a load calculation early so you know if the existing nearby transformer can handle your demand or if the utility must upgrade capacity — transformer upgrades are a common, costly item. Also consider futureproofing: conduit from the meter to the house for an EV or battery system, provision for a generator transfer switch, and space in the service panel for anticipated circuits; these small design decisions save thousands later.
Budget and schedule are where buyers get surprised, so get multiple written estimates and clarify responsibilities up front. Typical small service drops and meter installs may be a few thousand dollars, but line extensions, long trenching runs, and transformer installs can range from mid‑five figures to substantially more on remote lots; expect wide variability based on distance, terrain, and whether you choose underground which is more expensive than overhead. Ask the utility who pays for what, whether permit fees, easements, and transformer ownership/maintenance fall to you or the utility, and whether temporary construction power is available and what that costs. Coordinate these items with your builder and electrician early so connection work can be scheduled to align with foundation and rough‑in phases, and include a contingency in your budget and timeline for unforeseen upgrades.
Is natural gas or propane available at this property, and what heating fuel options should I plan for?
As a custom home builder, the first thing I tell clients is to get a gas availability letter and a line-extension cost estimate from the utility before you sign anything. Ask the utility for the nearest main location, maximum deliverable pressure (and allowable BTU per meter), estimated trench length, and any easement or right-of-way requirements — these all drive whether a gas service is practical and how much it will add to your site costs. Have your HVAC designer provide a preliminary gas load so the utility can size the meter and give an accurate quote; a mismatch here can mean expensive upsizing later.
If a gas main isn’t nearby, evaluate propane as the default backup. Practical questions to answer with local suppliers: what tank sizes they recommend (commonly 500–1,000 gallons for whole‑house heating in our climate), whether tanks can be buried or must be aboveground, setback/clearance rules, installation and permitting costs, and typical delivery intervals and emergency service. Get estimates for annual gallons burned based on your projected heating system and water heater types so you can compare operating cost and delivery logistics; also decide whether you will buy or lease the tank, as leases can reduce upfront cost but add ongoing fees and restrictions.
Don’t forget alternative and hybrid strategies when gas or propane are costly or unavailable. Cold‑climate heat pumps now perform well in Denver-area winters and dramatically simplify fuel logistics (but you’ll need to size for peak load and consider a small backup heat source or dual‑fuel setup). Geothermal is another low‑operating‑cost option if your lot and budget allow the drilling/loop field. From a build standpoint, confirm mechanical room layout, combustion air and venting clearances (or electrical service capacity for electric systems), and site access for tank delivery or drilling rigs. Before purchasing land, get ballpark quotes for each option and add a contingency for unexpected line‑extension, trenching, or site‑preparation costs so you won’t be surprised during construction.
What broadband, phone, and cellular coverage should I check before buying land?
As a custom home builder, the first thing I tell clients is to get a written serviceability confirmation from every provider that could serve the property — fiber, cable, DSL, fixed wireless, and cellular carriers. Ask each provider: exactly where their nearest network handoff is, whether a pole extension or fiber splice is required, who pays for the drop/extension and any make‑ready work, and what the estimated install timeline will be. Don’t accept verbal assurances: request a written quote that lists drop length fees, trenching or boring requirements, and any easement or right‑of‑way the provider will need recorded on the deed.
Cellular coverage and fixed‑wireless line‑of‑sight are site‑specific, so test actual signal strength from all major carriers at different spots and times on the lot; phone‑map snapshots or a simple live call test are far more reliable than generic coverage maps. If coverage is weak, plan for alternatives (external roof or pole antennas, directional fixed‑wireless receivers, or satellite/low‑earth‑orbit providers) and check HOA and county rules for antenna installations. Also account for reliability needs — if you depend on smart systems or home security, ask providers about backup options, and plan for a cellular or battery failover for the router and ONT.
From a construction perspective, we include dedicated conduit runs from the road to the home’s telecom demarcation point and reserve a small network closet near the main electrical panel for the ONT, router, and structured cabling termination. I recommend specifying at least one continuous 1.5–2″ conduit (or an innerduct where local code dictates) with pull tape during site work so future upgrades are easy and inexpensive; plan for multiple conduits if you want separate fiber and copper drops. Before closing, verify easements are recorded, agree on who will coordinate trenching and pole work, and budget for provider fees in your site‑development costs so telecom doesn’t become a surprise during construction.