Buying land sounds like a dream, right? A blank canvas where you can build exactly what you want. But in places like Redding and surrounding areas, it can be easy to jump in without knowing what you're really getting into. I’ve worked with plenty of folks who thought they’d found the perfect spot, only to discover surprise expenses, restrictions, or worse, land they couldn’t actually use the way they intended. So if buying land is on your radar for 2025, let’s make sure you’re fully prepared.
The Basics Before You Buy: What Makes a Piece of Land Worth It
We’ve helped a lot of people through this process, and let me tell you, not all land is created equal. Whether you’re thinking of building a house, starting a farm, or just want some open space to roam, here are the big things you need to look out for.
Location Isn’t Just About Scenery
The first question I ask anyone who tells me they want to buy land is simple: Where? Because where your land is located changes everything: the price, the kind of lifestyle you can build, and even how much you’ll pay in future development costs.
On the Shasta MLS, you can find land listings ranging from $8,000 to over $4 million. Most of these lots are rural, outside city limits, and can look similar on paper. But your plans make all the difference. If you want to build a home, you need land that’s buildable and ideally already has infrastructure. If you're dreaming of farm life or just a bit of peace and quiet, you might love something more remote.
Ask yourself: What exactly do you want this land to do for you? Because that will help you pick a location that actually fits your vision. Places like Cottonwood, Anderson, or parts of Red Bluff might give you more acreage for less money, but they each come with their own trade-offs—things like HOA rules, commute times, or limited access.
Understanding Land Value
Once you have a rough idea of the area you want, it's time to dig into what actually makes land valuable. Here are the four key factors I always point clients to:
Usability
Is the land flat? Or will it need significant grading before you can build? Some lots may look pretty, but could cost tens of thousands just to level out.
Size
More acres don’t always mean more value. But knowing the acreage helps you compare properties apples to apples. For example, a quarter-acre lot in Lake California might be around $25,000, while a similar lot in Redding could run up to $125,000.
Location Desirability
A lot in Palo Cedro could easily be three or four times the cost of one in Anderson, even if they’re the same size. That’s the power of lifestyle and reputation.
Utilities
This one can be a game changer. Land with water, power, and sewer already installed is worth much more than raw land where you have to start from scratch. Those installations aren’t just expensive—they take time and paperwork.
Utilities & Development Costs: The Hidden Price Tag
I can't stress this enough: utilities can make or break your land deal.
Start by asking: Does the property already have water, power, and septic? If not, you're potentially looking at thousands in added costs. For septic, you’ll likely need a percolation test (or "perc test") to see if the soil can handle a system. These tests run about $1,500, and they’re a standard part of the due diligence process in California. When I work with buyers, I often try to negotiate with the seller to cover this.
If you’re planning on drilling a well, keep in mind that deeper wells usually offer better water quality but cost more upfront. And if there’s already a well on the land, don’t just assume it’s good to go—inspect it. You’ll want to know how deep it is, how much water it pumps per minute, and if the water quality is decent.
For power, most lots will have service at the edge, but you’ll need to pay to bring it onto your land. The same goes for gas. In rural areas, you’ll need a propane tank, whereas more urban plots might be able to connect to the city line.
These aren’t just small extra steps, they’re serious costs that need to be factored into your budget upfront.
Watch Out for Rules and Restrictions
This is something a lot of people don’t think about until it's too late. Even if there’s no one living nearby, your land might still have restrictions.
We’re talking about CC&Rs (Covenants, Conditions & Restrictions) and HOAs (Homeowners Associations). Not all land has these, but when they do, they can seriously limit what you can build or how you use your land.
For example, CC&Rs might say you can't build anything under a certain square footage or restrict the type of home you can put there. Some don’t allow mobile homes. These rules stay with the land even if there’s no formal HOA.
HOAs, on the other hand, are active communities that often collect fees and manage shared services like landscaping, pools, or private roads. They can also dictate rules like no RV parking or having to keep your lawn a certain way.
Always ask for a title report and check with the city or county zoning office before closing. This can save you from some seriously expensive surprises.
Financing Land Is Not Like Buying a House
Lastly, let's talk money. Most people assume they can just get a regular loan, but land financing is a different beast.
Cash is king in land deals, especially for more rural or undeveloped plots. If you do need financing, you’ll likely need a larger down payment, often 25% to 50%, and higher interest rates, typically around 8% to 12%.
There’s also seller financing. This can be a great option, especially if the land has been sitting on the market for a while. It allows for more flexible terms that both you and the seller can agree on.
Wrapping It Up: Let’s Talk Before You Leap
Buying land can be one of the most exciting purchases you make, but only if you go in prepared. I’ve seen buyers light up at the thought of building their own home or escaping the city, only to hit roadblocks because they didn’t ask the right questions upfront. That’s exactly why I created this guide: to give you the same advice I give my clients face-to-face.
If you’re thinking about buying land in Redding or the surrounding areas and want someone in your corner who understands the process from start to finish, we’d love to help. We are The Barrett Team, and helping you make smart, informed decisions about your future is what makes us pros in the area.
Feel free to reach out any time, even if you’re just in the "dreaming" phase. It never hurts to start the conversation.
