Torn between building on your own lot and buying a new home in Melissa or Anna? You’re not alone. With rapid growth across northern Collin County, both paths can make sense depending on your timeline, budget, and tolerance for complexity. In this guide, you’ll learn how the two options compare on costs, permits, utilities, financing, and resale so you can move forward with confidence. Let’s dive in.
The local picture in Melissa and Anna
Melissa and Anna sit in a fast‑growing corridor of northern Collin County within the Dallas–Plano–Irving metro area. New subdivisions have expanded quickly, bringing developer‑installed streets, utilities, and homeowners associations in many communities. At the same time, you’ll still find rural and fringe estate lots where private utilities and added site work are common.
Before you choose a path, verify where a property sits and who oversees it. Inside city limits, permitting flows through each city’s planning and building departments. Start with the City of Melissa Planning & Development and the City of Anna Planning & Development for current rules, fees, and timelines. In unincorporated county areas, the Collin County Permits & Development Services team is your authority for permits and inspections.
Lot types you’ll see locally include:
- Infill or platted subdivision lots with city utilities, curbs, and standard setbacks.
- Larger rural parcels where you may need a septic system, private well, and driveway or culvert work.
- Estate or hobby‑farm parcels at the city fringe that may have added standards or ordinances.
Proximity to US‑75, Highway 5, and new amenities influences both lot availability and pricing. Site characteristics like drainage, soils, and easements also shape feasibility and cost.
Build on your lot: what to expect
Building on a lot gives you maximum design control and the chance to tailor the home to your lifestyle. It also brings more coordination and up‑front risk. Here’s what to plan for.
Costs to budget
When you build on your lot, your budget typically includes:
- Lot acquisition if you don’t already own it.
- Site prep and utilities: clearing, grading, tree removal, soil testing, foundation design, driveway access, and erosion controls.
- Impact, tap, and permit fees charged by the city or county.
- Construction hard costs for labor and materials.
- Soft costs: architectural and engineering fees, surveys, permits, inspections, builder overhead, insurance, and temporary power/water.
- On‑site systems if needed: septic system installation and permits, and well drilling.
- Contingency: a common best practice is 5 to 15 percent for unforeseen conditions.
Local labor and materials shift often, so treat any per‑square‑foot numbers as estimates. Get fresh quotes from custom and semi‑custom builders before you lock your plan.
Permits and utilities
Inside Melissa or Anna, your plan typically runs through submission, plan review, permit issuance, and staged inspections for foundation, framing, mechanical, and final. Straightforward plans can review in weeks; complex designs or conditional items can take months. Reach out early to the City of Melissa Planning & Development or the City of Anna Planning & Development for current steps and fees. For county parcels, contact Collin County Permits & Development Services.
Confirm utility providers and availability by address:
- Electric: Oncor Electric Delivery manages distribution for much of the region. Remote sites may need line or pole extensions.
- Natural gas: Atmos Energy serves many North Texas addresses. Not all lots have gas; confirm service areas.
- Water and sewer: Many subdivisions tie to city systems or regional providers like the North Texas Municipal Water District. Rural lots may require a septic system and possibly a well.
- Internet: Fiber is common in new communities, but availability varies by subdivision and street.
Floodplain checks are essential. Use the FEMA Flood Map Service Center to confirm whether your lot lies in a regulated flood area and whether elevation certificates or added drainage measures are required.
Site constraints to check
North Texas has site conditions that can affect budgets and timelines:
- Expansive clay soils are common. A geotechnical report informs foundation design and cost.
- Easements and setbacks can limit building footprint and access. Review the survey and any HOA covenants before design.
- Drainage controls and floodplain rules may require detention or grading plans.
- Tree preservation standards may require surveys or replacement plantings in certain subdivisions.
- Driveway and access rules vary by city and county, including culvert and turnout requirements.
Buy new in a community
Buying a new production or spec home in a subdivision offers predictability and a quicker path to move‑in. Developers handle most site work and bring utilities to the lot, which reduces surprises.
What you get
- More predictable pricing with land and build bundled together.
- Faster timelines, especially with inventory or near‑complete homes.
- Builder and manufacturer warranties on structure and systems.
- Established financing options with potential incentives from preferred lenders.
- Community infrastructure and, often, HOA‑maintained amenities.
Where costs show up
- Lot premiums for preferred locations or corner lots.
- Standard closing costs, sometimes offset by builder incentives.
- HOA dues and any initial contributions or transfer fees.
Because production builders buy materials and subcontract labor in bulk, per‑square‑foot pricing is often more competitive than a one‑off custom build.
Financing differences
How you finance the home is a key distinction between building on a lot and buying new.
- Construction loans are common for build‑on‑your‑lot projects. They usually feature interest‑only draws during construction and either convert to a permanent mortgage or require a separate permanent loan. Lenders may require higher down payments, fixed‑price contracts with reputable builders, and inspections tied to draws.
- Lot loans can help you acquire land now and build later, though rates and terms often differ from standard mortgages.
- Builder financing and incentives are typical in production communities. Preferred lenders may offer rate buydowns or closing cost credits, but you should compare offers.
- Government programs such as FHA, VA, and USDA have specific rules for new construction and may require approved builders and added inspections. Confirm details with your lender.
For consumer protections and Texas‑specific guidance, the Texas Real Estate Commission offers helpful resources for new construction and contracts.
Appraisal, taxes, and resale
- Appraisals for custom homes on unique lots can be challenging if there are few similar sales nearby. That can affect loan‑to‑value if the appraisal comes in lower than expected.
- Production homes in active subdivisions usually appraise more predictably because there are more comparable sales.
- Property taxes are set by the Collin County Appraisal District. New construction typically triggers a reappraisal in the year it is completed. Review timelines and homestead exemption rules with CCAD.
- For resale, turnkey new homes in desirable subdivisions often draw broader buyer pools due to modern features and neighborhood amenities. Custom homes on nonstandard lots may appeal to a narrower audience. Location and access to commuting corridors are important for both paths.
Decision framework
Use this quick framework to clarify your best fit:
Time vs control
- Need a faster move‑in: buying new or a near‑complete spec home can be ready in months.
- Want full design control: a build‑on‑your‑lot project suits you but takes longer.
Budget certainty vs customization
- Prefer predictable closing costs and fewer unknowns: production homes tend to be steadier.
- Willing to manage contingencies for personalization: custom builds offer tailored choices.
Site complexity and cost
- Platted, serviced lots with minimal constraints: building can feel more like a production timeline.
- Lots needing utility extensions, septic/well, or significant grading: expect added cost and time.
Financing access
- If a construction loan’s down payment and draw process are hurdles: builder financing in a community may be simpler.
Resale and comparables
- Areas with strong new‑home sales provide better comps and appraisal predictability.
- Unique designs on isolated lots can limit the future buyer pool.
Quick checklists
Questions for the City or County
- Is the lot inside city limits and which office issues permits?
- What are the zoning, setbacks, and lot coverage limits?
- Is any part of the lot in a floodplain or regulatory floodway?
- What impact, tap, and permit fees apply and when are they due?
Contact: City of Melissa Planning & Development, City of Anna Planning & Development, or Collin County Permits & Development Services.
Questions for utilities
- Which providers serve water, sewer, electric, gas, and internet at this address?
- If a service is not on site, what is the process and cost to extend it?
- What are the meter or tap fees, and are they included in the builder’s price?
Contact: Oncor Electric Delivery for electric, Atmos Energy for gas, and regional water providers such as the North Texas Municipal Water District.
Questions for lenders
- What construction loan programs are available and what down payment is required?
- How are draws, inspections, and conversion to permanent financing handled?
- Will you require a fixed‑price contract with a licensed builder?
Questions for builders
- Are you licensed and insured in Texas, and can you provide recent local references?
- Is the contract fixed‑price or cost‑plus, and what is included or excluded?
- What warranties do you provide and how are change orders priced?
- Who coordinates permits, inspections, and meter sets?
Order these early
- Boundary and topographic survey with easements noted.
- Geotechnical (soil) report for foundation design.
- Septic feasibility and permit estimates if sewer is not available.
- Tree survey or arborist input if preservation rules apply.
Timeline snapshots
- Buying new production or spec homes: move‑in can be as little as 3 to 6 months from contract depending on inventory and construction stage.
- Custom build on your lot: plan for roughly 8 to 14 months from permit to completion, plus time for design, permitting, and any site work.
Every project is different. Builder capacity, weather, inspections, and site conditions will affect your schedule.
Next steps in Melissa and Anna
Confirm whether your target property is inside city limits and call the relevant office to verify zoning, utilities, floodplain status, and fees.
If building, consult two local builders and a lender experienced with construction loans to compare pricing and terms.
If buying new, tour communities at different build stages to understand timelines, incentives, and HOA structures.
Order a survey and geotechnical report before finalizing a custom budget.
If you want a clear, side‑by‑side plan tailored to your timeline and budget, reach out to Leigh Calvert for local guidance on both options.
FAQs
How long does each path take in Melissa and Anna?
- Production or spec homes often allow move‑in within 3 to 6 months, while custom builds typically run 8 to 14 months from permit to completion, plus design and permitting time.
Can I use FHA or VA for new construction?
- Possibly. These programs have specific requirements and often require approved builders and additional inspections, so confirm details with your lender before you begin.
Who pays for utility extensions on a private lot?
- It depends on location and existing agreements. Developers usually handle extensions in subdivisions, while private lot owners often fund extensions or cost‑sharing outside those areas.
Will a custom home appraise at my contract price?
- It depends on comparable sales for similar homes. Unique designs or limited comps can lead to appraisal gaps, so plan for a contingency.
How will new construction affect my property taxes?
- New construction typically triggers a reappraisal when complete. Check the Collin County Appraisal District for valuation timelines and exemption rules.
Where do I confirm floodplain status for a lot?
- Use the FEMA Flood Map Service Center to see if a property is in a regulated flood area and whether elevation certificates or added drainage measures are required.
