Significance

• Many homeowners have empty lots next to their homes because many builders across the nation went bankrupt and couldn't complete projects in late 2008 and throughout 2009. Until those lots are built on, the effect they have on property values can be detrimental.
  
  

Types

• There are two types of empty lots found next to built properties: those graded for construction (ready to build on) and those awaiting engineering. In tract-built communities, the more common of the two are graded lots next to properties because most builders will grade lots in a sequence. However, in certain areas, where custom builders made their communities, there are many completely undeveloped lots, not yet prepared for construction.
  
  

Time Frame

• The longer a lot sits vacant, the more opportunity there is to cause problems for current home owners, especially if the lots were not prepped for construction. Empty lots breed weeds, which will attract pests and vermin that could infest nearby properties. In addition, because the lot has not yet been engineered for proper drainage, the surrounding home owners could endure lots of water drainage from nearby empty lots onto their property, landscaping and foundation.
  
  

Considerations

• Homeowners next to empty lots need to involve their homeowner association in formulating ideas to attract builders to a community that has been abandoned, or come up with an interim solution to empty lots in areas that have existing homes. Many times, these lots can be re-zoned to accommodate a park or community pool. However, this is something that will ultimately be left up to the homeowner's association board. Current home owners can also look into purchasing the deed to the vacant lot, and each one expanding property lines to have larger yards.
  
  

Expert Insight

• Before selecting a builder or community to live in, it is important to review the builder's financial position. Public companies are easy to find on the stock exchange. If you see the stock receding, that is a sign that a buyer should beware, because the builder is not making the money they need to compensate for losses.