Buying Land in Vermont to Build: Key Considerations (Zoning, Site Work, Financing & Deed Restrictions)

Buying land in Vermont can be an incredible way to create a home base for skiing, biking, and four-season living—but raw land comes with more variables than buying an existing home. If you’re considering purchasing land to develop in Northern Vermont (Stowe, Lamoille County, and surrounding towns), here are the biggest factors to evaluate before you make an offer.

1) Speculation vs. “Build-Ready” Land (Site Work, Utilities, and Engineering)

One of the first questions is how much uncertainty (and upfront work) you’re comfortable with.

• Raw / unimproved land: Often the lowest price point, but you may be starting from scratch with access, utilities, wastewater planning, and a buildable “envelope.” In Vermont, raw parcels with development potential can sometimes be found starting around $1,000/acre.

• Engineered / partially improved parcels: Land that already has items like wastewater design, some site work, and a defined building envelope typically commands a premium. These parcels often start around $10,000/acre.

Terrain matters a lot in Vermont. Steep slopes, ledge, wetlands, and drainage can quickly change the true cost of a “good deal.” A smart early step is to preview the parcel’s terrain and constraints using the Vermont Agency of Natural Resources (ANR) mapping tools (parcel overlays can help you spot topography and potential red flags before you spend money on due diligence).

2) Zoning and Local Bylaws (Town Rules Can Be Stricter Than the State)

Vermont land development is a mix of state-level regulations and municipal zoning bylaws—and towns can be more restrictive than the state.

A few key takeaways:

• Every town is different. Some municipalities have detailed zoning bylaws; others have limited restrictions.

• Always read the local bylaws and, when possible, talk directly with the zoning administrator.

• Slope restrictions can vary. For example, development on land with a slope greater than 15% is prohibited in the Town of Elmore, while state guidelines may allow permitting on lots up to 25% grade.

If you’re buying land with the intent to build, zoning should be part of your “go/no-go” checklist before you get too far down the road.

3) Financing a Land Purchase (Why It’s Different Than Buying a House)

Financing land can be tricky—especially if the purchase is primarily speculative.

• Land loans: Lenders are often hesitant to fund raw land purchases because there’s less collateral and more uncertainty.

• Construction financing: If you can assemble a full build plan, you may be able to qualify for a new construction loan.

This is where full-build services can be helpful. A strong plan may include:

• Roughing in the driveway

• Clearing a building envelope

• Engineering and site design

• Utility planning

• A construction scope and timeline

The more defined the project, the easier it typically is to have productive conversations with lenders.

4) Encumbrances: Deed Restrictions and Easements

Encumbrances can affect what you can build, where you can build, and how you can access the property.

Deed restrictions

Deed restrictions are written into the deed and generally run with the land—meaning they can apply to future owners indefinitely. In Vermont, this is fairly common when larger tracts are subdivided.

Easements

Easements are also common. They may allow:

• Neighboring landowners to cross a portion of the property for access

• Utility companies to maintain lines

• Recreational access corridors

In Vermont, recreational easements can include things like VAST trails, the Catamount Trail, or other established corridors.

Before you buy, review the deed, survey, and any recorded easements so you understand what rights others may have on (or across) the land.

Helpful Vermont Land Development Resources

• Vermont Agency of Natural Resources (ANR): Mapping tools and environmental resources

• Vermont Department of Environmental Conservation (DEC): Wastewater, permits, and related guidance

Quick Checklist: What to Confirm Before You Buy Vermont Land

1. Access (legal and practical)

2. Terrain/topography and site work expectations

3. Wastewater feasibility and permitting path

4. Town zoning bylaws (and any special overlays)

5. Easements and deed restrictions

6. Financing strategy (land loan vs. construction loan)

Want a Second Set of Eyes on a Parcel?

If you’re looking at a piece of land in Northern Vermont and want help thinking through buildability, zoning questions, and the likely “true cost” of development, I’m happy to help you evaluate it and plan smart next steps.