The Real Cost of Buying Vacant Land and Building a Home in Central Florida

The Real Cost of Buying Vacant Land and Building a Home in Central Florida

What Buyers Don’t Realize Until It’s Too Late

Every week, we hear the same question:

“We found a cheap lot — wouldn’t it be more affordable to just buy land and build?”

On paper, buying vacant land and building a custom home in Central Florida sounds like a smart, economical move. In reality, it is one of the most misunderstood and financially risky paths for buyers who haven’t done deep due diligence.

This article breaks down the true timeline, costs, permitting hurdles, wetlands issues, and construction realities that buyers must understand before purchasing vacant land in Central Florida.

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Why “Cheap Land” Is Rarely Cheap in Central Florida

In Central Florida, low-priced lots almost always have a reason:

• Wetlands coverage

• Floodplain restrictions

• Environmental protection zones

• Lack of utilities or access

• Zoning limitations

• Conservation easements

Unlike other states, Florida wetlands are heavily regulated at the county, state, and federal levels.

The Hard Truth

If a lot looks “too cheap,” it is usually:

• Partially or entirely wetlands

• Unbuildable without mitigation

• Buildable only after extensive (and expensive) approvals

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Wetlands: The #1 Cost Surprise for Buyers

What Are Wetlands?

Wetlands are protected ecosystems regulated by:

• County environmental departments

• Florida Department of Environmental Protection (FDEP)

• U.S. Army Corps of Engineers

Even disturbing soil in a designated wetland can require permits.

Approximate Wetlands Mitigation Costs (Central Florida)

These are common ballpark figures we see — actual costs vary significantly by county and parcel.

• Environmental study & delineation: $3,000 – $8,000

• Wetlands mitigation credits:

  • $50,000 – $150,000+ per acre

• Permitting & legal review: $10,000 – $25,000+

It is not uncommon for wetlands mitigation to exceed $75,000–$200,000+ on a “cheap” lot.

In many cases, mitigation costs exceed the value of the land itself.

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Permitting, Engineering & Pre-Construction Costs Add Up Fast

Before construction even begins, buyers typically must pay for:

Common Upfront Soft Costs

• Survey: $1,500 – $3,500

• Soil tests & geotechnical reports: $2,000 – $5,000

• Civil engineer site plans: $5,000 – $15,000

• Architectural plans: $5,000 – $25,000+

• Impact fees (county): $10,000 – $30,000+

• Utility connection fees: $5,000 – $20,000+

Many buyers spend $40,000–$80,000+ before breaking ground.

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Construction Costs in Central Florida: The Reality

Construction pricing has permanently reset higher since 2020.

Typical Build Costs (2025 Market Estimates)

• Production builder: $250–$300 per sq ft

• Custom home builder: $300–$500+ per sq ft

That means:

• 2,500 sq ft custom home = $750,000 – $1,250,000 (construction only)

• This does not include land, permits, or soft costs

And custom builds:

• Take longer

• Carry higher risk

• Offer fewer cost guarantees

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Timeline: Why Builds Take 18–24+ Months

Typical Timeline Breakdown

• Due diligence & studies: 3–6 months

• Permitting & approvals: 6–12 months

• Construction: 9–18 months

Total timeline: 18–30 months is common

Delays are normal due to:

• Permit backlogs

• Material shortages

• Contractor scheduling

• Weather (especially in Florida)

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Financing Reality: Paying for Two Homes at Once

This is one of the biggest shocks for buyers.

How Construction Loans Work

• Buyers typically pay interest-only during construction

• No permanent mortgage until completion

• Interest accrues on funds drawn

The Hidden Cost

During construction, buyers often pay:

• Rent or current mortgage PLUS

• Construction loan interest

For 12–24 months.

This can easily mean $3,000–$6,000+ per month in combined housing costs before moving in.

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When Buying Vacant Land Does Make Sense

Buying land and building can work when:

• The lot is already cleared and upland

• Zoning and utilities are in place

• Wetlands impacts are minimal or nonexistent

• Buyer has strong cash reserves

• Buyer understands timeline and risk

But it is rarely cheaper than buying an existing home — and often far more expensive.

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Our Advice to Buyers Considering Vacant Land

At Creegan Group, we don’t discourage building — we believe in informed decisions.

Before buying vacant land, we strongly recommend:

1. Environmental due diligence before closing

2. Full cost modeling (soft + hard costs)

3. Understanding financing realities

4. Comparing against existing and new-construction homes

Many buyers who initially want land discover that:

• A resale home

• Or a builder-owned lot with a production build

Is faster, safer, and more affordable.

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Final Thoughts: Knowledge Prevents Costly Mistakes

Buying vacant land in Central Florida is not a shortcut to affordability. More often, it is a path filled with:

• Hidden costs

• Long delays

• Regulatory hurdles

• Financial strain

If you’re considering land — talk to experts before you buy.

📞 We help buyers evaluate land before it becomes an expensive regret.
📩 Reach out to Creegan Group for an honest, data-driven analysis of your options.

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