It would be hard to find another place that embodies the spirit of luxury so effortlessly than Aspen, Colorado. From world-class skiing and shopping to a vibrant arts and culture scene that attracts big names and creative minds alike, Aspen is a rarefied haven that never fails to impress.
While the market for Aspen, Colorado homes for sale remains strong for those who want to move in as soon as possible, there’s another option for buyers who seek a truly bespoke living experience: buying land for sale in Aspen, Colorado and building the home or investment of your dreams.
It’s true that Aspen is 55% more expensive than the national average and 42% more expensive to live in than the average city in Colorado, according to the Economic Research Institute.
However, Aspen has lower healthcare, utilities, and transportation costs compared to the national average. Coupled with Colorado’s tax policies, which impose less on residential properties than commercial or industrial ones, then it makes better sense to build a bespoke home in Aspen than it would in similar affluent areas elsewhere.
With construction costs in Colorado just slightly above the national average, there will also be more to spend on a custom house that reflects the true you. And, as an investment property, your Aspen home will have exceptional resale value down the line and rental potential.
If that sounds like something you can bet on, read on. This article will cover everything you need to know about buying land for sale in Aspen, Colorado and developing your own slice of heaven in this mountain paradise.
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3 THINGS TO ASK BEFORE SEARCHING FOR LAND
An experienced Realtor is a wizard when it comes to streamlining the real estate process – including picking out the plot of land that’s perfect for you. But they can’t do all the work for you.
That’s why it’s best to come up with a basic plan to make sure you don’t get lost in the thicket of Aspen, Colorado real estate listings. Answering three questions before jumping into your search will make the process so much simpler:
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What do you intend to do with the land?
Land is a blank canvas. It’s easy to let your imagination run wild with all the possibilities it holds. Search for land with very clear ideas about what you want to do with it.
Are you looking to create a luxury getaway for yourself and your loved ones? Or are you interested in building vacation rentals or selling them later on?
Committing to a clear purpose will help narrow down your search and ensure any potential restrictions are taken into account.
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What is your budget?
Land for sale in Aspen, Colorado costs more than developed property.
That’s because lenders perceive undeveloped properties as a riskier proposition. Financing will often come with plenty of conditions, making cash the ideal payment method and using the land as equity for the construction loan. That, of course, means that your real estate budget will need to be well-defined.
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What are your timeline and goals?
Balancing your specific timeline and goals is critical before deciding to buy land.
For instance, if your goal is to create a permanent residence, you can take your time in finding the ideal piece of land at the right price. Conversely, if you’re buying land to kickstart a business with a set launch date, your timeline becomes more pressing.
You also have to take into account the length of time it takes for Aspen to approve your plans and look at a 12-to-24-month timeline for the actual construction of your luxury home.
Staying on top of all these moving parts helps you start your search for land with the right mindset, which will help you stay flexible as you go deeper into this journey.
3 THINGS TO CONSIDER WHEN NARROWING DOWN YOUR CHOICES
Once you’re clear about your needs, budget, and timeline, it’s time to consider the type of property best suited for your plans. Generally, you’ll come across two categories: developed and undeveloped land.
Developed land includes existing structures, roads, and utilities, making it ready for immediate use. In contrast, undeveloped land requires work before you can even start developing it – moving in will likely take months, if not years, down the line.
After deciding on the type of land you need, sift through your choices based on location, size, and any building regulations that may apply. While a surveyor will be essential before making your final choice, doing the work now will make it easier to choose later on.
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Consider the location
In a place like Aspen, there are a myriad of things to consider when buying land. The terrain, the climate, the risk of fire, flood, and avalanches, and more. Are amazing views worth the engineering challenges of building on steep slopes or dramatic ledges? Consider the work and money involved in building and maintaining a home in such areas.
You’ll also need to think about the medium- to longer-term developments planned for the area. How will they affect the value of the land and the property you plan to build? How do you intend to future-proof your home? How will you ensure its sustainability?.
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Consider the size
Next to cost, the size of your land matters. Do you want a sprawling luxury estate with spectacular views? Or would you rather have a more modest homestead surrounded by breathtaking acreage? In Aspen, land for sale can range from more than $10 million for a 10-acre lot, to $950,000 for a lot that’s just a little over 2,600 square feet.
Consider the space you’ll need for the kind of structures you intend to construct. How will the shape of your property influence what you can build and how you use the land?
Get a professional surveyor to accurately determine the size of your land and its boundaries.
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Consider zoning
When it comes to keeping communities organized and maintaining their distinct character, zoning laws, building codes, and local bylaws are key.
These rules, which vary from area to area, detail the types and heights of buildings allowed in specific areas and lots. For example, in Colorado, the land is categorized into residential, commercial, agricultural, or mixed-use zones, each with their own guidelines.
Regulations for each type of real estate ensure that your structures are safe and meet health standards, covering everything from insulation requirements to distances from bodies of water or protected areas. They may also include stipulations regarding water systems, livestock, and waste removal.
Given the range and complexity of these regulations, it’s crucial to work with a Realtor who is attuned to local real estate laws. They will know the right thing to do, ensuring that your plans meet community standards and making your construction process a lot smoother and hassle-free.
6 TIPS TO FIND LAND FOR SALE IN ASPEN, COLORADO
At this point, every plot of land in Aspen can still seem like a potential dream property.
So how do you narrow your search and find the ideal piece of land for sale in Aspen, Colorado?
Keeping in mind your needs and preferences based on the factors discussed above, these are the six things you must consider before making your final choice:
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Know your water, timber, and mineral rights
Buying a piece of land does not necessarily include everything that’s on or in the property. Water, timber, and mineral rights are often separate from surface land ownership through deeds, leases, or contracts. It’s essential for landowners, developers, and investors to understand the implications of these rights when purchasing or developing land, as they can significantly impact land value, development potential, and ongoing operational considerations.
Consult an experienced Realtor for a rundown on the rights that come with buying land. Then, consult a lawyer who specializes in property law to provide legal advice and assistance in reviewing deeds, contracts, and title documents related to water, timber, and mineral rights. They can ensure that these rights are clearly defined, properly conveyed, and compliant with local laws and regulations.
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Talk to a land use consultant
A land use consultant or planner can offer insights into zoning regulations, land use restrictions, and environmental considerations that may affect the development or use of your property. They will also provide an insider’s view on natural hazards or challenges specific to the area.
Going proactive in this department not only keeps Aspen beautiful but also keeps your neighbors happy, as well as increases the long-term value of your property.
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Assess the cost of essential infrastructure
Despite the rugged terrain, most of the properties you’ll find in Aspen are already connected to roads and utilities. In undeveloped lots, factor in the costs of bringing in essential services.
If your property doesn’t have an access road, consult with local officials about easements or rights of way so you can build one yourself. If you have neighbors who have road access, negotiate the use of their road.
You also want to be clear on who’s responsible for the upkeep of any roads or access trails that you don’t own. It’s not uncommon for private roads to be shared with neighbors, which means that you can split the costs and maintenance with them.
Water, in particular, can be an issue in Colorado. If linking up with the municipal system isn’t possible, digging up a well and using a pump to get the water out will likely be your best choice. You can also check out Colorado’s regulations on rainwater collection, stormwater detention, and greywater use.
As for waste, you can install a modern septic system in lieu of compost toilets. If so, make sure you can pass a percolation test, which measures how quickly water is absorbed into the ground below.
When it comes to power, you’ll need to install poles, transformers, and power lines. Off-grid alternatives include solar or wind-powered generators.
Once these essentials are taken care of, it’s up to you which other utilities you want in your property, such as internet or cable.
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Assess the resale potential
However you choose to use your land, Aspen is Aspen. Even undeveloped plots, which may face higher taxes, can still be a savvy investment based on location and market conditions.
Consider attributes such as road and utility access, scenic beauty, and proximity to schools, restaurants, and shopping.
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Assess taxes for commercial and non-residential land
Colorado provides tax breaks for landowners who dedicate their land to farming or ranching. Meanwhile, taxes for commercial or non-residential land are much higher, often about three times more than those for residential properties. This can sometimes push landowners to consider selling, subdividing, or developing their property, even if they want to keep it as is.
Before purchasing land in Aspen, think carefully about how you intend to use the property and how that fits with Colorado’s tax rules.
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Understand restrictive covenants, liens, and easements affecting the property
Restrictive covenants set out what you can and can’t do with your land. These rules are often made to keep up property values. For example, you might find limits on fence heights or restrictions against using the land for business purposes. Some covenants even specify what kind of home you can build or the materials you use.
Liens are essentially claims against your property intended to ensure a debt is settled. These can arise from situations like unpaid taxes or incomplete payments for work done on the property. You’ll often encounter these claims during a title search, with banks usually requiring their resolution before they approve a sale.
Easements, on the other hand, are legal rights that allow someone to use another person’s land for a specific purpose, even though they are not the owner of that land. This right remains even when the property changes hands.
It’s important to be aware of the two primary types of easements. An easement in gross typically pertains to utilities, such as power or gas lines that run across your land. An appurtenant easement involves two neighboring properties – like if a neighbor’s driveway cuts across your land to reach the main road. Even if an easement isn’t currently in use, it can still be activated later if it’s listed in your deed.
While you can find out about these obligations on your own, the easiest way to stay on top of what might be a mounting number of rules is to work with an established local Realtor. They can also help you negotiate or appeal any covenants, liens, or easements that may not work for your intended use of the property.
MAKE YOUR INVESTMENT COUNT WITH A BILLION DOLLAR-SELLING ASPEN REALTOR
Make your search for the perfect parcel of land in Aspen, Colorado foolproof with me, Heather Sinclair. As Managing Partner of The Agency Aspen, I have sold over $1 billion in real estate and been named Top 10% of the Multiple Listing Service (MLS).
My drive, efficiency, and expertise have proven to be invaluable assets to my clients. For over 20 years, I’ve handled it all for high-end luxury clients, investors, as well as first-time buyers.
As your local expert, I will guide you through every step of the buying process and help you make the kind of decisions you’ll look back on with total satisfaction.
You’ve got dreams in Aspen. I’ll make them happen. Find out how by calling me, Heather Sinclair, at 970.948.8834 or sending me an email here!