Start with the deliverable
Before you do anything else, define what the land is going to become. Single-family lots for production builders? Custom estate homesites? MF-zoned development tract? Retail pad? Industrial flex? Acreage homestead with septic and well? Each path triggers a different feasibility checklist, a different buyer pool at exit, and a different financing path. The most expensive mistake we see is buyers contracting acreage with vague intent — and discovering at the end of option period that the intended use isn't entitled, the soils don't perc, or the utility capacity isn't available without a private extension.
Feasibility basics
Feasibility starts with the four real costs of land: acquisition (the contract price), development (utilities, roads, drainage, environmental, platting, fees), holding (carry cost during entitlement and platting), and exit friction (commission, closing, broker premium). Builders price land back into their pro forma based on finished-lot cost and absorption — meaning your raw land sale price has to clear back into their numbers, not just comparable raw land sales. For your own development, the all-in cost per lot (including soft costs and contingency) drives whether the project clears at exit. Spreadsheet it before you sign the option period.
Entitlement, zoning, and ETJ
San Antonio's regulatory environment is more complex than most buyers realize. Land sits in either the City of San Antonio (full zoning code, UDC compliance, formal platting through city engineering), the City of San Antonio ETJ (extraterritorial jurisdiction — subdivision regulation applies but zoning generally does not), or unincorporated Bexar County (county-level subdivision regulation only). Surrounding cities — Schertz, Cibolo, Boerne, New Braunfels, Seguin, Converse, Helotes — each carry their own city code and their own ETJ overlay. Comal County and Kendall County zoning rules differ from Bexar. Confirm jurisdiction, applicable code, and platting authority before assuming anything about zoning class or entitlement timeline. Surveys and title commitments tell you what's of record; the relevant city or county planner tells you what's permissible.
Utilities, septic, and access
Utility availability drives feasibility as much as zoning does. Confirm water, sewer, electric, and (increasingly) fiber/broadband capacity to the parcel. SAWS, BexarMet, Springs Hill WSC, Canyon Lake Water Service, GBRA, and a half-dozen rural water-supply corporations each have different impact fees, capacity rules, and connection timelines. Sewer capacity matters more than people assume — capacity-limited collection systems will hold up projects regardless of zoning. On acreage outside utility districts, septic and well are real considerations: soils must perc for OSSF (on-site sewage facility) approval through TCEQ/local authorities, and well capacity affects everything from build timeline to insurability. Road access matters too — recorded easements, county-maintained vs private, paved vs improved-gravel — all of which affect resale and financing.
Environmental, flood, and survey
Pull a current survey or commission a new one. Pull the FEMA flood map and confirm flood zone designation — and remember that flood maps update and that BFE (base flood elevation) drives buildable area and insurance. For tracts with potential historical use (former gas station, dry cleaner, industrial site), a Phase I Environmental Site Assessment is standard diligence. For Hill Country acreage, karst features (caves, sinkholes) and endangered species habitat overlays (golden-cheeked warbler critical habitat in parts of Kendall and Comal counties) can affect buildable footprint and required mitigation. Ag exemption status, mineral severance, and existing oil-and-gas leases all need to be confirmed via title commitment and county records.
Exit strategy and pro forma
Model the exit before signing the contract. Builder sale exit means finished-lot cost back into builder pro forma — confirm with active builder representatives who buy in that corridor. Build-and-flip exit means modeling delivered home product against active resale comps, with realistic absorption timing. Build-to-rent exit means modeling stabilized rent, cap rate, and financing takeout. Hold-and-flip on raw land means modeling appreciation against carry cost — and being honest that raw land carry is real. The pro forma should include at minimum a base case, a downside case (slower absorption, higher development cost), and a stress case (rate move against you).
Diligence timeline and budget
Build a realistic option period with a realistic diligence budget. For raw land, expect to spend on survey ($1,500-$8,000 depending on tract size), Phase I ESA ($2,500-$5,000 if needed), perc test and OSSF feasibility ($800-$2,500), utility availability letters (typically free but slow), and meetings with the relevant planner. Option period should match the slowest piece — typically utility availability or platting feasibility. We coordinate this diligence as part of representation and routinely catch deal-killing issues before earnest money goes hard. Larger commercial and institutional land assignments route through EREG's commercial desk.