Buying Land in Rural Colorado: What You Need to Know First

Buying raw land in Southern Colorado is one of the most rewarding purchases you can make — and one of the most complex. Unlike buying a home, where most of the infrastructure already exists, land purchases require you to think carefully about what is there, what is not, and what it will cost to make the property usable.

Here is what every buyer should understand before they start looking at land in Custer County and the surrounding area.

Water is the first question. In Colorado, water rights are separate from land ownership. Just because a creek runs through a property does not mean you have the right to use it. Wells require permits, and not every parcel can support a well. Before you fall in love with a piece of land, find out what water rights convey with the property and what the well situation is.

Access matters more than you think. A beautiful parcel with no legal road access is nearly impossible to develop and difficult to sell. Make sure any land you consider has a deeded easement or direct road frontage. Private roads in rural Colorado can be rough — ask about maintenance agreements and who is responsible for upkeep.

Septic and utilities are your responsibility. Rural land typically has no municipal sewer or water. You will need to install a septic system, and the soil must perc (pass a percolation test) to support one. Electricity may require running a line from the nearest transformer, which can cost tens of thousands of dollars depending on distance. Solar and off-grid options are increasingly popular for this reason.

Zoning and covenants control what you can build. Custer County has its own zoning regulations, and many rural parcels are also subject to HOA covenants that restrict uses, building sizes, or livestock. Always review the covenants before making an offer.

Financing is different for raw land. Most conventional lenders will not finance raw land. You will likely need a land loan, which typically requires a larger down payment (20–50%) and carries a higher interest rate than a home mortgage. Some buyers use cash or seller financing.

Work with someone who knows the area. Rural land transactions are not like buying a home in a subdivision. An agent with local knowledge can help you identify red flags, understand water rights, and connect you with the right inspectors and surveyors. This is not the transaction to navigate alone.