Choosing the right homesite is one of the most important decisions you’ll make when building a new home. To choose a lot for your new home, you’ll need to consider the lot premium, size, drainage, topography, and the surrounding location. Each of these factors can impact your budget, comfort, and long-term satisfaction. At Allen Edwin Homes, we walk you through every step of the homesite process—demystifying what can feel overwhelming and helping you make a confident, informed decision. With expert insights from our construction and land development teams, this guide is your long-term resource for choosing the perfect lot for your new home.
Budget for Lot Premium in Your New Construction Loan
A lot premium is an additional cost added to the base price of your home based on the homesite’s features or desirability. This might include pond views, wooded surroundings, larger lot sizes, walk-out basements, or cul-de-sac locations.
Lot premiums exist because not all homesites are equal. Some require additional preparation, while others offer lifestyle benefits that increase demand. The key is understanding why a premium exists and deciding if it aligns with your priorities and budget.
Common reasons for lot premiums include:
Waterfront or wooded views
Walk-out or daylight basement potential
Larger or irregular lot sizes
Corner or cul-de-sac placement
When building with Allen Edwin Homes, your sales counselor helps you review lot premiums upfront so there are no surprises later in the process.
Decide on the Lot Size You Need for Your Home
Lot size affects more than just yard space—it impacts privacy, outdoor usability, and how your home sits on the land. A larger lot may offer more flexibility for patios or landscaping, while a smaller lot can mean less maintenance and lower overall costs.
Think about how you plan to use your outdoor space both now and in the future. Are you envisioning a deck, garden, or additional green space? Or would you prefer a low-maintenance setup that fits your lifestyle?
When evaluating lot size, consider:
Space between neighboring homes
Backyard depth and width
Local setback requirements
Long-term resale appeal
Your builder can also help match your preferred floorplan to a lot that supports the layout and functionality you want.
Learn About the Lot’s Drainage
Proper drainage is critical—especially in regions like Michigan, where seasonal rain, snowmelt, and freeze-thaw cycles are common. Drainage affects your yard, foundation, and long-term home performance.
A well-designed homesite directs water away from the home, preventing pooling, erosion, or basement moisture issues. This planning happens before construction even begins.
Key drainage elements to ask about include:
Swales and grading plans
Drainage easements
How water flows after heavy rain
Allen Edwin Homes evaluates drainage carefully during land development, ensuring your homesite is prepared to perform well in all seasons.
Consider the Topography, Orientation, and Grading of the Lot
Topography refers to the slope and elevation of the lot, which can influence basement options, construction costs, and natural light. Some lots are ideal for walk-out or daylight basements, while others are best suited for traditional basement designs.
Lot orientation also matters more than many buyers realize. The direction your backyard faces can impact sunlight, energy efficiency, and how you enjoy your outdoor space.
Important factors to think about:
Sloped vs. flat lots
North- vs. south-facing backyards
Snow melt and water runoff patterns
Grading needed for patios or decks
Your builder can explain how these factors affect both construction and everyday living.
Observe the Location and Surroundings of the Lot
The location of your lot within the community can shape your daily experience. Traffic patterns, nearby amenities, and future development all play a role in long-term satisfaction.
Before choosing a homesite, take time to walk the neighborhood at different times of day. Listen, observe, and imagine daily life once your home is complete.
Things to evaluate include:
Proximity to main roads or entrances
Nearby green space or retention ponds
Future construction phases
Sunlight and noise levels
Choosing the right surroundings helps ensure your home fits your lifestyle—not just today, but years from now.
Secure Your Dream Lot and Home!
Once you’ve evaluated budget, size, drainage, topography, and location, the final step is reserving your homesite and selecting a floorplan that brings everything together. This is where working with an experienced builder truly matters.
At Allen Edwin Homes, we guide you through the entire new-build process—from selecting the right lot to choosing a floorplan that fits it perfectly. Our team ensures your homesite supports your home’s design, comfort, and long-term value.
👉 Ready to take the next step? Explore available new-build communities and connect with our team to find your ideal homesite.
FAQs About Choosing a Lot for a New Home
What is a lot premium in new construction?
A lot premium is an added cost for a homesite with desirable features such as scenic views, larger size, or special basement potential. Premiums reflect demand, location, and site-specific preparation costs. Your builder should explain these costs clearly before you move forward.
What is a good lot size for a home?
A good lot size depends on your lifestyle, home design, and maintenance preferences. Some buyers prefer larger lots for privacy and outdoor living, while others prioritize convenience and lower upkeep. Your builder can help match lot size to your floorplan and goals.
Do I need a separate construction loan to build my house?
In many cases, no. With Allen Edwin Homes, buyers typically use one loan and one closing, rather than a separate construction loan. This simplifies financing and reduces stress during the building process.
