Buying Land in Summit County & Park County Colorado: Complete Buyer's Guide

Essential considerations for purchasing land and building a custom home in the mountains

Is It Your Dream to Own Summit County or Park County Land?

The desire to build a custom home on your own piece of land in Summit and nearby Park County can be very enticing. The thought of having a custom mountain home to enjoy with friends and family for years to come is the dream of many. Some find themselves considering a land purchase in the mountains because they cannot find an existing home for sale that meets their needs and budget. Others dream of building their very own perfect mountain home to embrace the process of building an alpine residence from start to finish.

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The draw to buying vacant land and building a custom residence is that you'll have control over the entire process, from creative design to choosing an architect and builder, landscaping, and interior design. However, buying a buildable lot or plot of land can present challenges if you are not familiar with the ins and outs of buying land in Summit or Park County.

Owning land can be a good investment, as long as you take the time to research and become aware of all potential risks and considerations. It's essential to work with an experienced local professional real estate agent familiar with the area in which you are considering a land purchase.

An excellent real estate agent will know the pros and cons of various property types, locations, and neighborhoods in which you are considering buying land and provide you with new listings and price drops notifications. They will walk you through the process of buying land to help make the entire process smooth and predictable, which in the end, will save you time and money.

Research Resale Values & Market Trends

Compare cost per square foot for finished homes in the areas of consideration. Some Summit County neighborhoods in highly sought-after areas command high value per square foot. In contrast, other neighborhoods in more remote areas are less expensive. Typically, land for sale is priced with this location difference in mind; however, it's essential to look at final finished home prices to determine if building a new custom home in that neighborhood will be a good value.

Consider how long you plan to own the property and how important it is to sell at a profit. When considering a land purchase, it's always a good idea to look at the property through the lens of a potential future buyer and look for property features that may be more universally sought after (great views, desirable location, southern exposure, amenities, etc).

Understand Surrounding Land Use & Development

Before making a final decision on a potential land purchase, make sure you know whether the surrounding land is likely to be developed and how it will be developed.

Private Land: Many neighborhoods, towns, and counties have a master development plan which will determine what potential developments are allowed. However, if the land next to yours is privately owned, the land could potentially be built on at any time.

"Open Space": Land set aside by the city or county for parks or open areas. "Open space" designation could change; however, this would likely require a process of public input and voter participation.

Bureau of Land Management (BLM) Land: Summit County's 619 square miles include approximately 80% public land managed by the BLM and the United States Forest Service. BLM land could be exchanged or sold and made available for development; however, detailed guidelines indicate which tracts could be susceptible to this. For more information, visit the BLM Land Sales and Exchanges page.

Master Plans: View the Summit County Master Plan to research potential future changes to Summit County land and how it might affect your surrounding views.

Financing & Costs for Land Purchases

Save as much cash as possible for your land purchase. Land loans are typically riskier for banks, so securing financing can often be more complex than residential property. A sizable down payment is usually required, and land loan interest rates are generally higher than home loans.

Working with Local Lenders: Contact local lenders, as they are often more familiar with the area and thus may be more willing to lend versus national lenders. View our recommended lenders.

Construction Plans: Consider building a primary residence or rental property on the land. Banks are more likely to lend if there is collateral on the land. Talk to the lender about your buildout timeline and discuss combined land/construction loans.

Comparing Terms: Loan terms can vary widely on a land purchase between lenders, so be sure to compare loan terms and rates to secure the best deal.

Zoning, Ordinances & Land Use Restrictions

Zoning, Setbacks, and Building Height: Ensure the vacant land is zoned for your intended use and not subject to additional zoning restrictions. Check with the local city and county planning departments to see any other conditions, such as setbacks (the minimum required distance that any structure on the property must be from property lines).

You can find zoning, setback, and land-use restrictions for any property in Summit County at the Summit County Interactive Property Search and Mapping.

Review Summit County's Land Use & Development Code for comprehensive guidelines.

Mineral Rights: Ensure you understand all mineral rights associated with the property and any associated implications.

HOAs, Covenants & Deed Restrictions

Homeowners Associations (HOA): Check with the HOA in which the lot is located to find out the rules and restrictions regarding new construction. Some subdivisions have regulations regarding square footage of the home, architectural design, landscaping, and other features.

Request the Association's Covenants, Conditions, and Restrictions (CC&Rs) and read through this document thoroughly to understand what's included in your HOA fee. Review the association's financials to ensure the association has necessary funds for future upkeep and repairs. Inquire about any upcoming special assessments which may be planned for homeowners.

HOA Management: Determine if there is a board or if it's professionally managed. It can be helpful to contact an HOA board member to ask questions and get a feel for responsiveness. Ask about HOA restrictions on land use and any deed restrictions on the property.

Environmental Issues & Analysis

Complete or request a thorough environmental analysis to identify potential issues or concerns regarding the property and environment.

Soil Testing: Building permits are generally conditional based on soil test results by a soil engineer. Soil tests determine the feasibility of building on a site and the best location for building. Some soil types may require additional design and slope requirements. Soil engineers can also test for septic design, drainage issues, expansive soils, and landslide risk. Some properties may be deemed unbuildable if underlying concerns cannot be mitigated; soil testing is crucial.

Water Quality: Evaluate water quality. It may be a concern if previous mining has occurred on or near the property.

Wetlands: Wetland regulations are complex and exist at the local, state, and federal level. Wetland regulations may affect whether you can safely and legally build on the property. A survey map should indicate the boundaries of any wetlands. A preliminary search on the National Wetlands Inventory or the US Fish and Wildlife Wetlands mapper is beneficial. However, the only accurate way to ensure a property is or isn't in designated wetlands is to order a Wetlands Delineation inspection and report. If there are known wetlands on or near the property, consultation with a knowledgeable real estate attorney well-versed in wetlands may be advisable.

Flood Zones: Flood zones can occur depending on the land's topography and proximity to rivers or streams. It's essential to identify if the property is located within a flood zone and what type of flood zone it is (100-year, 500-year, etc.). If the property is in a flood zone, flood insurance may be required. Flood insurance can be expensive, and financing land in the flood zone can be difficult. FEMA's flood risk map allows individuals to look up property addresses to identify flood risk.

Property Survey Requirements

A current survey may be available to review; however, you will probably be required to get a new survey. New land surveys are essential when purchasing a property, as they identify issues and areas of concern that may not be visible to the naked eye. Problems which may be identified in a survey include encroachments, easements, and property boundaries.

The cost of the survey can often be negotiated with the seller in the purchase agreement. Contact a knowledgeable real estate attorney if you need assistance in understanding or interpreting the property survey.

Utilities & Services

Septic System vs. Municipal Sewer: Septic requires a permit and perc test to determine how well the soil can absorb water (can only be done in summer months). Perc samples could already be on file for some lands for sale. However, they are generally suitable for a limited time (often only two years). If the property you're looking at doesn't have a site plan, soil test, or perc test, consider making these checks contingencies of the purchasing contract.

Water Systems: Consider water rights and well permits if you'll need a well. Determine if municipal water is available.

Other Utilities: Evaluate natural gas vs. propane availability, cable TV, satellite, internet, and cell phone service quality. How close are the nearest utilities to the property?

Accessing the Property Year-Round

Location Considerations: How close to stores, shopping, and services do you need to be? Are roads to and on the property maintained year-round? Who is responsible for maintaining local roadways and snow removal?

Access & Easements: Ensure you have year-round, permanent access on roadways to your property. Is there a graded driveway on the property? Surrounded or land-locked properties should have a proper easement in place to ensure permanent access to the property.

Real Estate Transfer Taxes

A real estate transfer tax is a one-time payment made at closing, usually paid by the buyer. Every time the property changes owners, the Summit County real estate transfer tax is collected. These taxes fund community improvements and enhancements, such as sidewalks, street lighting, roads, recreational facilities, and special events.

The amount of the real estate transfer tax in Summit County depends on the property's location but ranges from 0% to 2% of the total purchase price. Real estate transfer fees are collected and remitted to the county by the title company at closing.

Town-Specific Transfer Taxes:

Breckenridge: 1% within town limits (except newer developments on Peaks 7 & 8 with 2% transfer tax)

Frisco: 1% within town limits

Keystone: Typically 0%, except for specific subdivisions like Settlers' Creek with 2% resort transfer fee

Copper Mountain: Areawide 0%, except select newer condos with 1.5% resort transfer fee

Blue River, Dillon: 0%

Silverthorne/Wildernest: Typically 0%; however, some new properties may have a transfer tax

Some affordable housing and deed-restricted developments may waive the transfer tax. New developments may have a transfer tax specific to that subdivision. It's crucial to evaluate each property independently and verify current transfer tax rates with your real estate agent.

Impact Fees for New Construction

Impact fees are collected by Summit County and benefit affordable housing efforts in the region. Fees are calculated based on finished square feet and range from $0 to $2 per square foot. These costs should be factored into your overall development budget.

Additional Costs of Mountain Home Ownership

Costs associated with owning mountain land in Summit County may include snowplowing expenses, snow tires, and an all-wheel-drive vehicle to access the property during inclement weather. Fences, driveways, window coverings, furnishings, and landscaping are additional expenses required to make your newly constructed home a place you can live in and enjoy.

You may decide it makes sense to wait for an existing perfect mountain home to come on the market rather than buy a new plot of land and build a custom home. Whether you decide to purchase land and build or buy an existing home, be sure to work with a local real estate agent who can help you navigate the process so you can achieve your dream of living in Summit County or Park County.

→ CONTACT US TODAY or call Perfect Mountain Home realtor George Friou at (970) 368-2799 for more information or if you have any questions about buying land in Summit or Park County. We are here to help!

Copyright © 2020 SAR MLS. The information displayed herein was derived from sources believed to be accurate, but has not been verified by SAR MLS or Perfect Mountain Home. Buyers are cautioned to verify all information to their own satisfaction. This information is exclusively for viewers' personal, non-commercial use. Any republication or reproduction of the information herein without the express permission of the SAR MLS is strictly prohibited.