How to Quickly Evaluate Availability of Utilities on Infill Lots – A Builder’s Guide
Ready to buy land for your next development project? Before you make that purchase, don’t forget to evaluate whether the lot has access to utilities or not. The lot might be in the perfect location, be the right size and even a great bargain when it comes to price, but overlooking utilities can cause a major setback to your development plans. If the lot does not have access to utilities like water, sewer, or electricity, your budget and project timeline can spiral out of control. For custom home builders and developers, understanding utility availability for infill lots is a critical part of land due diligence.
In this guide, we’ll break down the five key steps builders should take to quickly evaluate utilities on land before buying. Whether you’re sourcing a lot in Houston, Austin, or Dallas, this checklist will help you avoid costly surprises and keep your project on track.
Why Builders Must Check Utility Availability Before Buying Land
Utility access can make or break a land deal. It is easy to make the assumption that because a lot sits in the middle of a neighborhood, utilities must already be in place. Unfortunately, that isn’t always true. Some infill lots may lack sewer access, require a costly power line extension, or have easements that cut into the buildable footprint.
That’s why a land acquisition utilities check should always be part of your due diligence. Before you close, you want to confirm:
What utilities are available today.
Where the connection points are located.
What the connection fees and timelines look like.
Skipping this step can turn a profitable infill development into a financial headache. For that reason, every builder should have a development feasibility utility checklist on hand before purchasing a lot.
Step 1 – Water and Sewer Availability on Infill Lots
First on the checklist is water and sewer. Most cities, including Houston, Dallas, and Austin, provide public water and sewer services. However, not every lot is automatically connected.
Here’s what builders should do:
Contact the city utility department to verify service availability.
Review GIS or utility maps to confirm nearby lines.
Request a capacity letter if you’re planning multiple homes or a larger infill project.
If sewer is not available, you may need to consider a septic system. This can add cost and require additional permitting, and at the same time reduce the buildable area. Builders should also compare the cost difference between septic vs sewer for new construction before making an offer.
Connection fees also matter. In some cities, utility hookup fees for builders can range from a few thousand dollars to tens of thousands, depending on how far the lot sits from the nearest line.
Step 2 – Electricity Connection for New Development
Electricity is often overlooked because it feels like a given. But in reality, not every infill lot has immediate access to power.
To evaluate:
Contact the local electric provider and ask if service is available at the property line.
Check if poles, transformers, or underground lines exist nearby.
Request an estimate for extension costs if service isn’t right at the lot.
The cost of extending power line access for infill lots can be significant—especially if poles or transformers need to be installed. Builders who assume electricity is a “non-issue” sometimes find themselves writing five-figure checks to bring power to a property.
Step 3 – Gas Line and Other Utility Access for Builders
While many new homes are shifting to all-electric builds, many buyers still expect gas appliances, fireplaces, or tankless water heaters. This makes availability of natural extremely important for custom home builders.
Builders should:
Check with the local gas utility provider.
Determine whether a tap fee will apply for connection.
Evaluate if switching to all-electric is a smarter option for that specific project.
Verifying gas line access for builders is especially important in older infill areas of Houston and Dallas where some streets may lack infrastructure.
Step 4 – Easements, Plat Maps, and Right-of-Way Issues
Utility access isn’t just about availability—it’s also about where those lines run. Easements can restrict how you use your land and where you can build.
Here’s what to review:
Plat maps to locate existing easements.
Recorded utility easements that may cross the property.
Right-of-way restrictions from the city or utility provider.
Ignoring easements can be a costly mistake. For example, a 10-foot water line easement running through the center of a lot could drastically reduce the buildable footprint. That’s why reviewing utility easements on property should be standard in every builder’s due diligence process.
Step 5 – Cost & Timing: The Builder’s Utility Feasibility Study
Even when utilities are available, builders still need to think about cost and timing. Utility providers may require months to schedule installation, which can delay your construction timeline.
Builders should prepare a utility due diligence for builders checklist that covers:
Connection fees for water, sewer, electricity, and gas.
Estimated time for installation and inspections.
Whether permits are needed from the city.
Any off-site improvements (like extending a sewer line) that might be required.
This step forms the foundation of a builder feasibility study utilities report, which helps you determine whether the project still makes financial sense.
Local Focus – Utility Availability in Texas Infill Markets
In Texas, utility access varies by city and neighborhood. Here’s what builders should know:
Houston Infill Lot Utilities
Older neighborhoods inside the Loop often have water and sewer access, but line capacity can be limited. Builders working in The Heights or Montrose should always verify before assuming connections exist.
Austin Infill Development Utilities
With rapid growth, Austin has seen utility constraints in certain corridors. Builders should confirm availability early, especially in East Austin where redevelopment is booming.
Dallas Land Utility Availability
DFW infill development typically benefits from strong utility infrastructure, but costs for extensions can still add up in older or transitioning neighborhoods.
Across all markets, verifying Texas land development utilities before closing is critical to protecting your bottom line.
Quick Checklist for Builders Before Closing on an Infill Lot
Here’s a streamlined checklist every builder should use:
Verify water and sewer availability on land
Confirm electricity connection for new development
Check gas line access for builders
Review utility easements on property and plat maps
Estimate utility connection fees for builders
Assess timing for installation and permits
This custom home builder land checklist utilities ensures you won’t be caught off guard after closing.
Conclusion: Utilities Can Make or Break an Infill Deal
For builders, evaluating utility availability for infill lots isn’t just a checklist, but a financial safeguard. A simple call to the utility department, a review of easements, and a few cost estimates can mean the difference between a profitable project and a disaster.
As infill development continues to rise in Houston, Austin, and Dallas, builders who master utility due diligence for builders will have the edge. By following this development feasibility utility checklist, you’ll make smarter acquisitions, avoid costly delays, and deliver projects on time and on budget.
Looking for infill lots with utilities? Check out our land inventory on www.buysellsolve.com.
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