Understanding Utility Costs Before Buying Land
AUTHOR Mike Hollaway
DATE Mar 24, 2026
SHARE

In my 40+ years of custom home building, I’ve seen utility costs make or break a project budget. Land with utilities ready at the street is a different ballgame than land where extensions are required. In rural areas, it’s vital to consider the costs of drilling wells and installing septic systems, which can significantly impact your bottom line.
When evaluating land, consider the costs of extending water, sewer, electric, and gas service. Running utilities from where they stop to your property can entail substantial expenses. Drilling wells in limestone-heavy Texas terrain, such as the Hill Country, requires specific expertise and equipment, driving up costs. Septic systems, too, are a necessity in non-sewered areas, and their installation can vary in price based on soil type and system choice. Reliable internet and communication services may be limited in remote locales, requiring satellite or other solutions.
By understanding these factors well in advance, you can ensure your project budget aligns with reality. I work closely with clients to provide realistic cost estimates for bringing utilities to raw land, eliminating surprises as we move forward with their dream home.
Accurate planning around utilities is key to a successful project. If you’re considering purchasing land for development, let’s discuss how I can help you evaluate utility costs. Give me a call at (210) 490-0069 and we can work through the details together.
Frequently Asked Questions
Why are utility costs important when buying land? ▼
Utility costs can significantly affect overall project budgets. Evaluating these costs upfront ensures you understand the full financial scope before purchasing.
What should I consider regarding utilities for rural properties? ▼
In rural areas, consider the costs of drilling wells, septic systems, and possibly limited internet services. These can greatly impact your budget.
How can Mike Hollaway Custom Homes help with utility planning? ▼
We provide realistic cost estimates and guidance on extending utilities, ensuring your project's budget remains on track.
