Choosing the Right Lot in Scottsdale
Lot selection determines half the outcome of a custom home project. Here is what we look for before a client signs a purchase agreement.
The lot you buy sets the ceiling on what you can build. Zoning, soil conditions, slope, orientation, utilities, and HOA restrictions all affect design options, construction cost, and timeline. In Scottsdale, building lots range from $300K for a flat half-acre parcel in the southeast valley to $5M+ for a north Scottsdale hillside with mountain views. We recommend bringing a builder onto the team before you close on a lot, not after. The cost of a pre-purchase site evaluation is a fraction of the cost of discovering a problem after you own the dirt.
Why lot selection matters more than most people think
Most buyers spend months choosing finishes, floor plans, and fixtures. But the lot you start with has a bigger impact on your final budget and livability than any of those decisions.
A bad lot can add $150,000 to $400,000 in unexpected site work before a single wall goes up. We have seen buyers close on hillside parcels without understanding the cost of retaining walls, deep pier foundations, or access road improvements. Those costs do not show up in the listing.
Your lot also dictates floor plan options. A narrow parcel or one with a large wash setback can force you into a two-story layout when you wanted single-story. North-facing slopes mean your backyard pool sits in shadow half the year. You cannot fix that once you own the property.
In Scottsdale specifically, the spread between "easy" lots and "difficult" lots is wider than almost anywhere in the metro. A flat, pre-graded lot in south Scottsdale is straightforward. A sloped parcel in the McDowell Mountain foothills with granite 18 inches below grade is a completely different construction project.
Scottsdale zoning basics for custom home lots
Scottsdale uses a zoning code that controls lot size, setbacks, building height, lot coverage, and density. The zone your lot falls in tells you what you can and cannot build. You can look up any parcel on the City of Scottsdale zoning page.
Common residential zoning designations
R1-43 (one-acre minimum) is the most common zoning for custom home lots in north Scottsdale. The "43" refers to 43,560 square feet, or one acre. You will find R1-43 in areas like DC Ranch, Desert Mountain, and parcels along Pima Road north of Happy Valley. Setbacks are typically 40 feet front, 30 feet rear, and 15 feet on each side.
R1-70 requires a minimum of 70,000 square feet (roughly 1.6 acres). This zoning covers parts of upper north Scottsdale and some hillside areas near the McDowell Sonoran Preserve. Larger lot requirements mean wider setbacks and lower lot coverage percentages.
R1-10 and R1-18 are found in south and central Scottsdale. These zones allow lots as small as 10,000 or 18,000 square feet. They work for infill custom homes and teardown-rebuild projects in areas like Arcadia and McCormick Ranch, but the buildable envelope is tight.
The Hillside Ordinance
Scottsdale's Environmentally Sensitive Lands Ordinance (ESLO) applies to lots with natural slopes of 15% or greater. If your lot falls under ESLO, you face additional review requirements: a Natural Area Open Space (NAOS) calculation, limits on land disturbance, specific revegetation rules, and possible review by the Development Review Board.
ESLO lots can still be excellent building sites. But the review process adds 3 to 6 months and the design constraints are real. You need an architect and builder who have been through ESLO review before. Mistakes in the application cause resubmittals and delays.
Check zoning before you make an offer
Look up the APN (assessor parcel number) on the Maricopa County Assessor's site and confirm the exact zoning designation. Do not rely on the listing agent's description. We have seen listings describe a lot as "ready to build" when it was zoned for agricultural use with a special use permit requirement.
Soil and terrain: caliche, granite, flood zones, and washes
The Sonoran Desert looks flat and simple from the road. Underground, it is anything but. What sits below your lot surface directly affects foundation cost and construction timeline.
Caliche
Caliche is a calcium carbonate layer cemented into the soil that is common across the Phoenix metro. It ranges from a few inches thick and crumbly to several feet of rock-hard material that requires a hydraulic breaker or blasting to remove. Footings through thick caliche can add $30,000 to $80,000 to your foundation cost compared to a lot with clean decomposed granite.
The only way to know is a geotechnical report. A geotech firm drills test borings across the lot (typically 4 to 8 locations) and produces a soil report that tells your structural engineer exactly what the foundation needs. Budget $3,000 to $6,000 for this report. It is the cheapest insurance you will buy on a custom home project.
Granite and bedrock
In north Scottsdale and the McDowell Mountain corridor, lots frequently sit on decomposed granite or solid granite formations. Shallow granite (less than 3 feet below grade) makes trenching for utilities expensive. Deep granite on hillside lots may require drilling and pinning foundations with steel dowels. This is specialty work and it costs accordingly.
Flood zones and desert washes
Scottsdale has mapped flood zones throughout the city. FEMA Zone A and Zone AO designations require flood insurance and impose finished floor elevation requirements. Even if your lot is not in a mapped flood zone, check for desert washes. A wash easement can consume 20% to 40% of your lot area, and that land is not buildable.
The Maricopa County Flood Control District maintains maps showing wash corridors. Scottsdale also enforces its own drainage and grading standards. A lot with a wash running through the center may look like 2 acres on paper but only give you half an acre of buildable area once setbacks and wash buffers are applied.
Orientation and views: sun, mountains, and city lights
Arizona gets 300+ days of sunshine per year. How your lot faces the sun determines energy costs, outdoor comfort, and which rooms get natural light at which hours.
Understanding solar orientation
A south-facing backyard gets direct sun most of the day. That is ideal for a pool that stays warm through October, but it means your covered patio needs to be deep (12 feet minimum) to create usable shade in summer. North-facing backyards stay cooler, though the pool loses sun earlier during winter months.
West-facing glass is the most expensive exposure to manage. Late afternoon sun in July and August hits at a low angle and drives cooling costs up fast. If your lot has a western exposure, plan for minimal glass on that wall, motorized exterior shading, or high-performance low-E glazing. Every one of those adds cost, but skipping them is worse. This is something we factor into every desert contemporary design we build.
Mountain views worth paying for
Scottsdale's signature views are the McDowell Mountains to the east and northeast, Camelback Mountain to the southwest, Pinnacle Peak to the north, and city lights to the south and west. A lot with unobstructed McDowell views from north Scottsdale can command a $500K to $1M premium over an identical lot without the view.
Before you pay that premium, check what can be built between you and the view. Vacant lots between your parcel and the mountains will eventually have two-story homes on them. Look at the zoning and maximum building heights for everything in your view corridor. We have seen buyers pay a million-dollar view premium only to lose half of it when the neighboring parcel was developed.
City light views
Lots along the south-facing slopes of the McDowell Mountains and Troon area often have sweeping city light views to the south and west. These are spectacular at night. But that south-facing slope also means summer afternoon sun hitting your house directly. The glass you install to capture city lights lets in a lot of solar heat. It is a tradeoff that needs to be designed around, not discovered after move-in.
Utilities and infrastructure: water, power, sewer, and road access
In an established subdivision, utilities are at the lot line. On unimproved land in north Scottsdale or the Rio Verde Foothills area, getting water and power to your building site can be a six-figure line item on its own.
City water vs. well water
Most lots within Scottsdale city limits have access to city water. But some parcels in north Scottsdale, particularly those east of the 101 and north of Dynamite Boulevard, rely on private wells or shared water systems. Well drilling in this area runs $30,000 to $80,000 depending on depth (some wells go 400 to 800 feet to reach the water table). You also need a well pump, pressure tank, water treatment system, and a 100-year water adequacy determination from the Arizona Department of Water Resources.
The Rio Verde Foothills area learned this lesson the hard way in 2023 when the City of Scottsdale cut off its emergency water hauling service. If your lot does not have municipal water, understand exactly where your water comes from before you buy.
Septic vs. city sewer
Rural and semi-rural lots outside the city sewer service area require a septic system. Conventional septic works on lots with adequate drainage and soil percolation. Lots with tight clay soils or high caliche may need an engineered system, which costs $25,000 to $60,000 compared to $8,000 to $15,000 for a conventional setup. Get a perc test before you close on the lot.
Power and gas
APS (Arizona Public Service) and SRP (Salt River Project) provide electricity in the Scottsdale area, depending on location. For lots in established subdivisions, power is typically available at the lot line. For undeveloped parcels, you may need to pay for a power line extension. Costs range from $5,000 for a short run to $50,000+ for remote lots requiring new transformer installations.
Southwest Gas provides natural gas service. Some remote lots do not have gas access and rely on propane. If you want a gas cooktop, gas fireplace, and gas pool heater, confirm gas availability before you buy.
Road access
Some north Scottsdale lots front on private or unpaved roads. If the road is not maintained by the city or a properly funded HOA, you are responsible for grading, drainage, and maintenance. Have a real estate attorney review any access easements across neighboring properties. We have seen lots that were technically landlocked without a recorded access easement.
HOA and CC&R considerations
Building in a master-planned community means working within a second layer of design rules on top of the city's zoning code. Some of these rules are stricter than anything the city requires. If you are comparing locations, our guide on Scottsdale vs. Phoenix breaks down the differences by area.
Design review committees
Communities like DC Ranch, Silverleaf, Desert Mountain, and Troon North all have architectural review committees (sometimes called design review boards). These committees review exterior materials, colors, roof profiles, landscape plans, wall heights, and lighting. In Silverleaf, the design review process can take 4 to 8 months and requires multiple presentations with detailed material boards.
The review is separate from city permitting. You need HOA approval before you submit to the city. If the HOA requires design changes, those changes cascade through your city-submittal drawings. This is why design review needs to start early, not after your architect has finished construction documents.
CC&R restrictions that affect your build
- Minimum square footage. Some communities require homes of at least 3,500 to 5,000 square feet. DC Ranch's Silverleaf parcels often have minimums north of 4,000 sqft. If you wanted a compact 2,800 sqft retirement home, check the CC&Rs first.
- Exterior material restrictions. Desert Mountain requires earth-toned colors and natural materials. Troon North has specific approved color palettes. White stucco that works in Arcadia may not pass review in a north Scottsdale HOA.
- Building envelope limits. Some CC&Rs define a specific building envelope on each lot that is smaller than what the city zoning would allow. Your architect needs this envelope map before starting design, not after.
- Landscape requirements. Most Scottsdale HOAs require desert-appropriate landscaping with a minimum number of trees and ground cover. Troon communities require revegetation of disturbed areas with native species. Non-compliance results in fines and mandatory remediation.
- Construction timelines. Some CC&Rs require construction to begin within 12 to 24 months of lot purchase and be completed within 18 to 24 months of breaking ground. Failure to meet these deadlines can trigger penalties or forced lot resale at a discount.
Read the CC&Rs before closing, not after
We have worked with clients who purchased a lot in a gated community and then discovered the CC&Rs prohibited the flat-roof desert contemporary design they wanted. The community required pitched tile roofs. That is not something you can negotiate after the fact. Read the full CC&R document and design guidelines during your due diligence period.
Work with a builder before you buy the lot
This is the single most common piece of advice we give, and the one most often ignored. By the time most buyers call a builder, they already own the lot. That is backwards.
A design-build team that knows Scottsdale can walk a lot and identify issues that do not show up in a listing: drainage patterns, likely soil conditions based on the area, utility access challenges, grading costs for a sloped site, and whether the buildable envelope actually supports the home you want.
We do pre-purchase lot evaluations for clients who are serious about building a custom home. It takes a site visit, a review of the zoning and any HOA design guidelines, and a rough order-of-magnitude estimate for site work. The cost is minimal compared to the risk of buying the wrong lot. For a look at what the full build process involves, see our guide on how long it takes to build a custom home.
What a pre-purchase evaluation covers
- Zoning and setback verification. Confirm the lot's zoning, allowable coverage, height limits, and setbacks with the city or town directly. Do not rely on the listing agent. You can verify any licensed contractor through the Arizona Registrar of Contractors as well.
- Buildable area calculation. After wash setbacks, utility easements, NAOS requirements, and HOA building envelopes, how much of the lot can you actually build on?
- Utility availability and cost. Is water, sewer, power, and gas at the lot line? If not, what will it cost to bring them in?
- Site work estimate. Based on slope, soil conditions in the area, and access, what is a realistic range for grading, foundation work, retaining walls, and drainage?
- HOA design compatibility. Will the design style you want pass the community's architectural review? Are there material or color restrictions that affect your vision?
This evaluation typically saves clients tens of thousands of dollars. In some cases it saves hundreds of thousands, because we steer them away from a lot that would have required extensive hillside engineering they had not budgeted for.
Popular Scottsdale areas for custom home building
Each area has a different feel, different lot sizes, different price points, and different building challenges. This table covers the highlights.
| Area | Typical Lot Size | Lot Price Range | Terrain | Key Features |
|---|---|---|---|---|
| North Scottsdale (General) | 1 - 2.5 acres | $500K - $2M | Gently sloped to flat desert | City water, R1-43 zoning, McDowell views from elevated parcels |
| Desert Mountain | 1 - 5 acres | $400K - $3M | Hillside and desert floor | 6 golf courses, strict design review, gated, higher elevation with cooler temps |
| DC Ranch / Silverleaf | 0.75 - 3 acres | $800K - $6M+ | Varied, some hillside | Premier community, extensive design review (4-8 months), resort amenities |
| Troon / Troon North | 0.5 - 2 acres | $500K - $2.5M | Desert foothills, moderate slope | Pinnacle Peak views, native revegetation required, gated sub-communities |
| Arcadia (Scottsdale side) | 10,000 - 20,000 sqft | $600K - $1.5M | Flat, irrigated | Smaller lots, teardown-rebuild market, Camelback views, walkable, no HOA |
| Paradise Valley Adjacent | 0.5 - 1.5 acres | $1M - $5M+ | Flat to gently sloped | PV schools, larger lots, some lots governed by PV Hillside Committee |
| Rio Verde Foothills | 1 - 5+ acres | $200K - $800K | Rolling desert, rocky | Unincorporated, well water required, no city services, large parcels, dark skies |
Prices reflect early 2026 market conditions. Lot values move with the broader real estate market and can shift within a 12-month period. These ranges represent what we have seen across recent client projects and MLS activity. For the Paradise Valley area specifically, our Building in Paradise Valley guide covers costs in more detail.
Common questions about buying a building lot in Scottsdale
How much does a building lot cost in Scottsdale?
Should I get a geotechnical report before buying a lot?
What is the ESLO ordinance and does it apply to my lot?
How long does it take to get a building permit in Scottsdale?
Can I build a guest house or casita on my Scottsdale lot?
What is the difference between R1-43 and R1-70 zoning?
Considering a lot in Scottsdale?
We do pre-purchase lot evaluations for clients planning a custom home. A site visit and preliminary assessment can save you from costly surprises after closing.
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