How to Run a Quick Feasibility Test Before You Buy Land
ASK:
I found a site I like. How do I quickly test if it’s worth pursuing?
ANSWER:
Land can be tempting. You see a piece of property, picture what could be built there, and want to jump in before someone else grabs it. But here’s the hard truth: most land doesn’t pencil for your vision.
That’s why every developer needs a quick feasibility test before writing an offer or putting down non-refundable deposits.
The Core Questions
A feasibility sprint doesn’t have to be complicated, but it should answer four questions fast:
- Zoning: Is your intended use allowed or will you need a variance or rezoning?
- Utilities: Are water, sewer, and power available with enough capacity?
- Entitlements: What approvals are required, and how long will they take?
- Economics: At a high level, do construction and land costs align with market rents or sales?
If the answer to any of these is a hard “no,” walk away. If they’re possible but complex, now you know what you’re solving for.
What’s at Stake
Skipping feasibility (due diligence) is like buying a car without looking under the hood. It may run or it may blow up the first time you start it. We’ve seen deals collapse because:
- Utilities weren’t available, requiring seven-figure upgrades
- Zoning didn’t match the intended use
- Easements blocked development potential
- Entitlement timelines exceeded lease or financing deadlines
Each of these risks could have been flagged in a two-four week feasibility sprint.
How We Run Feasibility at I&D
We’ve built a repeatable system that gives you answers, not just data. We:
- Pull zoning codes and cross-check with General Plan
- Contact utility providers to confirm access and fees
- Outline entitlement timelines and hearings
- Run a high-level pro forma to test if the numbers even work
You walk away with a clear go/no-go recommendation before money goes hard.
KEY TAKEAWAYS:
- Always run feasibility before you buy land
- Zoning, utilities, and entitlements drive deal success or failure
- Quick feasibility sprints save time, money, and heartache later
People Also Ask
1) What is included in a land feasibility study?
Zoning, entitlements, utilities, site constraints, and basic financial viability.
2) How much does feasibility analysis cost?
It depends on scope. Quick sprints can be done in days for modest costs. Full feasibility studies with engineers and consultants cost more but provide depth.
3) How long does a feasibility study (due diligence) take?
Quick feasibility: 1–2 weeks. Full feasibility: 30–90 days
