The Squeeze: Why Your Dream Lot Is Smaller Than You Think

Introduction [: 00:00

Bill Reid: Hello, everyone. Bill Reid here with The Awakened Homeowner, coming to you with Episode 34 in our Understanding Design Limitations series. If you tuned in last time, we talked about floor area ratio and how the city controls the mass of your home, which also controls the size and square footage. But today we're talking about where you can put that mass.

As we get deeper into this episode, I'm going to show you some real-life examples of site plans and how setbacks and easement limitations continue to restrict your property. Then we'll look at a FAR calculation on these exact sites. It's going to hopefully start to give you a sense of reality and where these rules really apply to a project.

So we're diving into the world of setbacks and property lines. Trust me, this is one of those topics where what you see is definitely not what you get. I call this episode "The Squeeze" because that's exactly what happens. You look at a piece of land or your backyard for an addition, and it looks spacious. But then we start laying on the rules. The front setback pushes you back. The side setback squeezes you in. Then you find a utility easement in the back, and suddenly that big open lot becomes a very tight little box.

I want to add one other element here. If you're a homeowner considering purchasing an empty lot in a development, I want to caution you. When you drive up to that site, get out of your car, and stare at your brand new site that you're considering buying—perhaps it has a nice view and you're looking around 180 degrees, 90 degrees left, 90 degrees right—I want you to be aware that it's very deceiving. If you don't know where the property lines are when you consider buying a lot, it's very possible that you're looking at the lot next door. A big part of what you think is your lot is actually the neighboring lot. This happens a lot to homeowners where their perception is completely off base.

So when you're considering purchasing a lot, be sure to have the corner boundaries set. Have the developer, real estate agent, your architect, or contractor help you visualize where the actual boundaries are before you buy. I call this the invisible box. If you don't know where the lines are, you're setting yourself up for a world of hurt and very expensive redesign.

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Two Real-World Examples [: 03:15

Bill Reid: Today I'm going to walk you through two real-world examples: a typical city lot and a complex custom home site in a development here in the Sierra Nevada mountains, to show you how these invisible lines can cut your property size—sometimes in half.

For those of you watching on YouTube, I'll be sharing my screen to show you the actual site plans so you can see exactly what I mean. If you're listening in the car, don't worry. I'm going to try to paint the picture so you can see it in your mind. If you can jump into the YouTube episode, I'd highly recommend it, especially if you're a serious home buyer considering expanding or building on your property, or if you're planning to buy a property.

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he Basics: Building Envelope [: 04:30

Bill Reid: Let's start with the basics. To find your buildable area—that magic zone where you can actually pour concrete—you need to understand two terms that get thrown around a lot. Instead of being called buildable areas, architects and designers will sometimes call it the building envelope. This is where you're actually able to have the footprint of your home structure, but also any outbuildings, accessory dwelling units, detached garages, shops, barns—anything like that has to remain in the building envelope or buildable area.

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What Are Setbacks? [: 05:15

Bill Reid: Let's first talk about setbacks. I know this can be somewhat fundamental and basic, but I've learned that many people don't fully understand what the term setback means. I really want to get into that at the early stages of this design limitation series.

We've already talked about floor area ratio and how it restricts. Now we're going to go to setbacks. I'll touch on easements and may do a whole other episode on them, because that's the real scary one—you can't see those at all.

A setback is a mandatory distance from your property line to the vertical wall of your house. It's just a no-build zone required by zoning ordinances that I've spoken about earlier. The city says you have to be 20 feet from the street and five or ten feet away from your neighbor.

But you have to be careful. Just because you have a sidewalk in front of your property doesn't mean your property line goes all the way to the sidewalk. There are many cases where the property line goes beyond the sidewalk or stops before the sidewalk. There are also neighborhoods with no sidewalks where you can see the street pavement interface with a gutter detail. Everybody thinks their property line probably goes there, but it most often doesn't. There's usually a separate easement on the front of your property that could reduce the buildable area.

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Do Cities Require Setbacks? [: 07:00

Bill Reid: Why do they want these setbacks? Cities are trying to control the mass and scale of homes. They're trying to preserve the character of the neighborhood. They want light between properties. They want airflow, believe it or not. And they want fire safety between homes.

It sounds reasonable, right? But remember, these are non-negotiable. You cannot just inch into the setback because your kitchen design works better that way.

I also want to caution you on a couple other things I've covered in the book. This is The Awakened Homeowner—it's on Amazon, and I cover all of these topics in it. If you love to read or you're thinking about a project, it's not a bad resource to start absorbing. But I'm also covering it here on the podcast, so it's up to you.

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etbacks for Different Floors [: 08:15

Bill Reid: The other thing I want to caution you on with setbacks is that cities very often have different setbacks for different floors. For example, the first floor setback on the sides may be five feet, but on the second floor, it could be ten feet on each side. The reason they're doing that is again to preserve mass, scale, and character.

The other thing you have to be cautious about: if you're planning an expansion of an existing home and you just want to add on to the back, carrying that exterior wall that's five feet from the fence—or about five feet from the property line—and you're assuming the house is parallel to the property line, you have to be careful. Homes are often not parallel to the property line. As you project your addition out further, there's a chance you could be encroaching into the setback and end up at four feet at the back end of the property.

What this means is you have to redesign. The problem with this situation is assumptions are made by designers and homeowners. They get all the way down to creating the plans, even ready to pour the foundation—even worse, have already poured the foundation—and realize they've encroached into the setback. As you can imagine, that can be a horrific experience. Unfortunately, I've heard of these before.

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Understanding Easements [: 10:00

Bill Reid: The second term I want to touch on today is easements. I'll decide if we need to dive deeper into this in a separate episode.

Easements are different than setbacks—a different beast entirely. An easement isn't just a rule about distance; it's a legal right of way granted to someone else on your property to use a slice of your land.

Usually it's a public utility easement called a PUE, but it's not always the case. Sometimes there are easements for neighboring properties to access their own property behind yours. There are other clearances—easements for riparian zones, creeks, or waterways that are close to or within your property.

All of these things are part of this compounding effect I'm talking about that continues to put the squeeze on your property. For the most part, this is where the power company, water company, and cable company have the right to access your land to run their lines.

Here's the kicker: you generally cannot build permanent structures in an easement. Not generally—you pretty much can't.

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e Hidden Nature of Easements [: 11:15

Bill Reid: The scary part about easements is you can't see them when you're walking around your property because they're usually underground.

Sometimes there are overhead power lines that you have to be very cautious about. Some properties at first glance look like a great deal, and then you show up and see overhead power lines running right through the middle. This is not uncommon, especially in more rural areas. It just dissects your property in half, so you have to put your buildings on one side or the other. Again, a scary mistake to make that could really restrict you.

When you combine the setback rules with easement restrictions, that's when the box starts to shrink.

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Fence Lines Are Liars [: 12:00

Bill Reid: Another thing I want to talk about is visual deception in home design. I'm going to be blunt here: fence lines are liars.

We assume that the fence our neighbor built 20 years ago marks the property line. It's a logical assumption, but it's frequently wrong. Basing your design on a fence line is a rookie mistake.

Here's why. Sometimes, especially in urban or suburban areas where every inch counts for calculating your floor area ratio and setbacks to design the home you desire, every inch matters. If you have a six-inch width where the fence is off by six inches times a hundred feet of lot—you can do the math. Maybe you have an extra 50 square feet you could add to your floor area ratio. Now you can get the covered porch you wanted, or whatever.

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: Suburban City Lot Survey [: 12:37

Bill Reid: Let me show you this on a site plan of an actual project that I did. We're going to dive into what a survey drawing looks like, which I've spoken about in previous episodes. I'm going to dedicate an episode to actual surveys because there's a lot to learn that's important to you.

We're going to look at two different projects. For those listeners without YouTube access at the moment, I'll describe it as best I can so you can envision it while you're on your commute or kicking back on the couch.

The first project is a typical city suburban lot—around 8,000 square feet—where I was involved in designing and building an addition to the home and also building an outdoor cabana and pool. We were very tight on all the setbacks. I want to show you what we discovered because I had a survey done before we began designing the project. This is what I've mentioned probably a hundred times in some 30 episodes this season.

You're looking at what a survey drawing looks like on a very flat, rectangular-shaped lot. This is a rectangular, 70-by-110-foot lot. It's a two-story home.

The front of the lot is on the left, the back on the right, the north side on top, and the south side on the bottom. If we zoom into the front of the lot, you'll see the typical driveway going out to the sidewalk. In this particular case, the dark dashed line is the property line right at the end of the driveway where the sidewalk begins. That makes it easy to understand. There's a concrete sloping apron that goes out to the street. So the first thing we learned is that the property line is in fact at the sidewalk. I know it sounds obvious, but you'd be surprised.

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ing Fence Line Discrepancies [: 15:30

Bill Reid: Now, as we move toward the back of the property, you're going to see something interesting. Look closely behind the pool at the back of the property. You can see these little Xs. The Xs, according to a note from the surveyor, indicate a seven-foot-high fence—your typical neighbor fence. They've got neighbors on each side and a public park in the back.

You can see that the fence line on the south side of the property is actually about a foot—maybe not quite a foot—into my client's property. In effect, their lot has been reduced in size.

Here's the scary one. In the back of the property, you see the Xs. This is actually a concrete block wall put in by the developer when they subdivided this property, with a public park behind. But this dashed line with the Xs is the concrete fence line, and it's about two feet into my client's property.

Why is that a big deal? We were designing a new pool. Up in the northeast corner of the lot, there was an old pool utility shed. Our plan was to demolish it and put in a pool house. If we went off the fence line assuming it was the property line, it would have strictly limited what we could do. I know it's only two feet, but you'd be surprised—one or two feet can really impact what the client wanted.

The city's requirements for setbacks for detached structures are different than for the main structure. This two feet would force the structure out more and affect the side setback requirements and the distance to the existing home. It gets complicated, but the two feet over there made all the difference in the world on this project.

By having a survey, we were able to design the project to the actual property line, not the fence line. Pretty cool, right? This survey cost five to six thousand dollars, and it was well worth the money for a lot of reasons.

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South Side Fence Discrepancy [: 18:00

Bill Reid: You can also see that the fence line is not consistent with the property line on the other side. I'm looking at the south side of the property now at a fence line that's about a foot in on my client's side of the property from the actual property line, therefore constricting their lot more.

If you were to design a building off of the fence line, you're not going to get as big a building as you may have wanted. The dark dashed line at the bottom of this site plan is the actual property line. When we design, we actually design off the actual property line.

I know this seems a little petty or insignificant, but it really is not when you're dealing with a compacted city lot.

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rstanding Height Limitations [: 19:00

Bill Reid: Let me mention one other thing before we go into the next project, and that's about height limitations. I'm not going to go into details—I just want to show you one learning lesson about surveys.

On the survey drawing, you see all these little numbers and curved dashed lines running around the property. The number is actually an elevation height. That 116 number in the middle of this dashed curvy line going through the property is the height of the property there. It also tells you which way the property is sloping.

You can see at 116, then as I move left, there's a 115, another curvy line. The distance between dashed lines is quite large—this is a very flat lot.

What I want you to be aware of: in this particular city, when it comes to measuring heights of structures, you do not measure the height from the corner of the building right up against it. You measure the height of the building off the top of the curb. We go way out past the sidewalk, past the parking strip where there's trees and plants. You see the curb measurement of 114.71 TC—that's "top of curb."

It's important to know this if you live in a similar property and you're planning a second-story addition. Going back to the house itself, you can see 116.87 feet. So the lot rises about two and a half feet up the driveway sloping up to the garage. That tells us we may not be able to go as high as we wanted.

This particular house had an extremely steep pitch—almost like a 12-and-12 pitch. For every 12 inches of horizontal run, it rose up 12 inches, which is a 45-degree angle. It's a very steep roof, which makes roofs effectively a lot higher at the top.

That's the first sample project—a city suburban lot showing how fence lines are liars. If you know where your property lines really are, it may benefit you a lot to get your kitchen two feet bigger or your pool house that much closer. The more data you have, the stronger and more reliable design you're going to have, and you're also protecting your liability. You don't want to encroach into a setback and have your neighbor start asking questions. That's where you get into trouble.

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ntain Development Custom Lot [: 23:39

Bill Reid: Now we're going to move into the next project. Visualize wanting to buy a vacant lot in a brand new development in a mountain development, a larger parcel. You're standing there with this amazing vista view, thinking you're buying a mountain—when you're not.

We're going to look at the restrictions from both the county and the HOA. This was in an unincorporated area and a really beautiful development. I happen to be involved in coordinating the whole design of the project.

This next project is a roughly one-acre parcel in the Sierra Nevada mountains where I happen to live. I coordinated the design of the home with a licensed architect and had an interior designer consult with me. I wanted to show you what the development looks like because this goes back to the perception of how big a lot really is.

For the video, this is the address—on the 18th tee of a development. Here is the view of the lot from left to right. It's a sloping lot from the road down to the 18th tee. Here I am standing and evaluating the site, trying to get my bearings. On the left there's a ravine, and on the right there's a ravine.

In the overhead view of the lot, you can see the power services here, which I'm going to show you on the diagram. Right over here, the lot basically stops somewhere in these trees. It's a really nice parcel, a little over one acre. This is the home we designed—a visual 3D representation of a mountain modern style home sitting on the lot.

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Survey for the Mountain Lot [: 26:00

Bill Reid: Here is the actual parcel that we just looked at with the big, beautiful sweeping views, green trees, golf course, and everything. This is what some people might think is a little boring, but this is extremely valuable data for designing a home. I insisted on having this before we did any design work. In fact, I may have obtained this drawing before I purchased the lot. This happens to be a lot I personally own that I'm really intimate with—I thought it would be a perfect example. Of course, the architect needs this to design, and it's one of the first things they insist on having before they begin design work.

My surveyor determined it was 1.02 acres. The net area, if you remember from the previous floor area ratio episode, is what we talked about.

Let me show you some interesting things about this development that may be unique but are not uncommon to other developments. First, there's a very clear 20-foot building setback from the property line. That's the dashed line that goes all the way around the property with circles and radiuses.

You'll also notice my surveyor placed all trees over six inches on the property so I can identify trees I may need to remove for the site. All these little squiggly lines show you the terrain and slope.

The top of the lot—standing on the street looking at the view—this lot slopes downhill. What he calls the shoulder is 5,083.6 feet, and as it slopes down to the very far corner, it's 5,040 feet above sea level. So this lot slopes about 43 feet down. We're going to look at this because, if you remember from the previous episode, we talked about a reduction in floor area ratio relative to slope percentage.

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The Road Easement Surprise [: 28:30

Bill Reid: The setback is one very basic rule that many homeowners already know. But let me show you a couple other unique things.

In this particular development, the property line actually goes all the way to the center of the road—not up to a sidewalk, not up to a little gravel edge at the edge of the street. You see the road right here, here's the shoulder, here's the road. The property line actually goes into the road.

Think about it—the perception is your lot appears bigger than it really is when it comes to how much you can develop on the property.

They have a 20-foot measurement from the property line to this dashed line. Remember I showed you that electric cabinet in the picture? You can see it here. But then there's another 20-foot section from this dashed line to this dashed line, which is actually the setback. They've taken a whole chunk of your property away because it goes all the way into the middle of the street.

This 10-foot section of the 20-foot section is what they call a snow storage easement. You can't place anything there because when they go to plow, they need somewhere to put the snow.

The point is you don't just draw a dashed line around all four edges of your property and reduce it. You have to look carefully to see how much your property is reduced in building area.

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e Home Design and Site Study [: 30:00

Bill Reid: Now you're looking at the same exact lot with a home we designed—the same home you saw in the video presentation. You're seeing the footprint of the home and the setback requirements here, here, all the way around. We started to get a little bit closer with the garage here, and here's the setback all the way around.

This also allowed me to study the utilities and potential path of utilities. We're considering geothermal, so this could potentially be the geothermal drilling location and equipment. This study affected the architectural design of the project to be as smart as possible about where to actually locate the utility room. What if we wanted to put it over here without thinking about the utility locations underneath? All of a sudden we're going all the way across. Hopefully you get my point—this is a really important step when it comes to being prudent about design.

This is what we call siting the building. You'll hear that term a lot. This survey and site work influenced the location and orientation of the building, the angle of the orientation. We specifically sited this home on this lot based on the slope and the projections of certain dynamics of the lot. You can see it's sitting up on top of this little ridge, and that's where our patios are.

You can also notice the trees. We're trying to maintain certain trees but also eliminating certain trees. This 11-inch pine, this 11-inch pine, this 10-inch pine—these are trees shown on the survey without a building. We dropped the building on it, and now we know which trees to remove. Now we can go to a tree removal or site excavation person and say, "Here are the trees I want you to include in your scope of work and your estimate"—as opposed to getting that infamous "I didn't know we had to remove these trees, here's a change order."

The more information we have, the more empowered we are. That's one of my key principles. I'm enlightening you, empowering you, and protecting you so you don't get those change orders from your general contractor. More importantly, we're being smart about how we lay this house out on this site and thinking it through.

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Parcel Study Analysis [: 34:11

Bill Reid: Now I'm going to show you a study I did on the property before we started designing. This is something I do when consulting with homeowners or contractors about a parcel, whether they're considering buying it or have already purchased it and are planning a project before hiring an architect. I get involved at that level of consulting—I haven't really publicly announced that I do that, but eventually that'll come along once the BuildQuest application is going. If you need help with something, let me know.

This is a parcel study. It's not rocket science, but believe it or not, a lot of people don't do this. This is a study of the Nakoma Resort parcel—the custom home resort parcel we just looked at.

The total gross area of the lot was 1.02 acres. Remember, that includes everything—all the way to the outside boundary property lines, all the way out to the center of the street. So I bought a one-acre lot. Well, the first thing you realize is you didn't really buy a one-acre lot.

Less the 20-foot road easement is 0.16 acres. We've had to reduce the size of the lot by 6,970 square feet. Now my total net area is 37,462 square feet.

One thing I want to point out—it's kind of interesting. This is a new rule that came after this survey was done. The state of California—any lot over one acre requires 30-foot setbacks. Can you imagine that? I bought a 1.02-acre lot, and that 0.02 kicked me over to have to increase all of my setbacks by an additional 10 feet. That's nuts.

The total net area is 37,000, less 20-foot building setback all sides: 11,326 square feet. You would increase that by 50 percent now under the new rules. That's what happens in this business—new rules show up. Nobody knows about them unless you have a qualified architect or consultant on board checking all this stuff. Most good architects are going to figure that out way ahead of time and tell you what's going on. But you can't always count on it.

So my 44,000-square-foot lot—I can only build on 26,000 square feet of it now. That's still a lot. That's about two-thirds of an acre. In this particular case, it's not hugely impactful, but I wanted to show you a real-life application of the FAR calculations we spoke about in the previous episode.

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Slope Reduction Analysis [: 37:00

Bill Reid: I'm looking at a table showing total gross area 44,000, less that crazy road easement 6,900—my total net size is now 37,000. I have to knock off another 11,000 for the actual 20-foot setback, and I'm down to a 26,000-square-foot lot.

I also analyzed the slope. As I said earlier, we had a 5,083 elevation to 5,040 elevation. At the top of the street, the elevation was 5,083 feet above sea level, and it sloped down to the golf course at 5,040 elevation—a 43-foot high slope down. When you start doing the math, it comes up with an average slope of 12 percent.

That's what a lot of jurisdictions use to reduce the allowable floor area ratio for your property. The city of Saratoga, California, for example, which has a lot of hillside lots—if it's a 12 percent slope, you have to reduce the amount of square footage by 10 percent plus 1 percent for every percentage above 10 percent. So at 12 percent slope, I have to reduce the size of my home by 12 percent to manage the mass and scale of the property.

They're everywhere. They've got you at all angles. I guess it's a responsible way to plan developments. But if this wasn't a one-acre parcel—if it was a half-acre parcel—I wouldn't need those 30-foot setbacks, although I didn't have that in this calculation. You can imagine that if it's still a sloping lot, all of a sudden I'm at my limit of what I wanted for my house.

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FAR Calculation Spreadsheet [: 38:30

Bill Reid: This is data I was dependent upon from the survey. Sometimes there are other ways you get this through GIS maps and whatnot. But I spent the four or five grand on the survey. Now I'm going to use this for the architect, for landscape design, everything.

That's what I wanted to show you and how it impacts what data we can use to analyze the FAR, floor area ratio. Let me pull up my FAR calculation spreadsheet that you may have seen before.

Again, you're not supposed to have to apply all this and know all this all day long, but I want you to be aware of this stuff so you can ask the right questions.

You may remember this spreadsheet from previous episodes. What we're looking at is a Google Sheet of how I'm calculating my area based on this exact parcel—the custom home parcel. Here you can see I have an allowance of 35 percent of the net site area. My gross parcel size is 44,000. I had to discount it because of the right-of-way easement, which was that road.

Here's my slope reduction—12 percent. I lost another 4,495 square feet, so now my lot really thinks of itself as 32,000. But my allowable floor area is huge because it's a huge lot. When you start looking at this thing, I'm way under what I'm able to build on this particular parcel. In fact, in this development, there is no FAR percentage because the lots are so large. They do have setbacks and other limitations, but in this case it was not impactful.

Again, if I were to throw this into a half-acre parcel or less, you can see I'm going to get more and more impact.

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Key Takeaways [: 40:00

Bill Reid: So that's the idea today—to show you real-life examples of how we're applying some of these design limitations to a real-life project. I know this sounds daunting, and I know it feels like the city is trying to stop you from building, but that's really not the point. The point is you have to know the rules of the game before you start playing. Part of playing is buying the property if you haven't already done so.

Even if you love a parcel and just have this emotional feeling about it, still put a contingency in there that you want to have enough time to do the due diligence to understand what can be built on the property.

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Your Action Plan [: 41:00

Bill Reid: Here is your action plan straight from The Awakened Homeowner playbook.

Number one: Research before you buy. If you're looking at a lot, ask the realtor for the preliminary title report and look for easements. Easements are recorded on your title report. You won't see a diagram, but you'll see a whole bunch of words that are hard to understand. At least you'll know: "What is this easement here?" Then you can ask your city or county planning desk for the setback requirements—you can probably accomplish that online. Or you can bring in a consultant like an architect to do all this for you and pay them to do it. It's going to be your choice if you have the time to do the research.

Some people actually get a survey done before they even purchase the property, or ask the existing homeowners. You'd be surprised—a lot of people have this stuff.

I know I sound like a broken record, but I will keep saying it: spend the money on a surveyor, whether it's before or after. You need to know everything that's there that you can't see to protect yourself from liability—legal liability with your neighbors, encroachment into easements, and especially to make sure you're designing with the proper guidelines and base points so you don't make a mistake and have to redesign.

After you do all that, draw that box before you draw a single wall of your dream home. Have your designer draw that buildable box on the site plan. Shade in the setbacks, shade in the easements, and see what is left. This is your canvas.

If you're buying a parcel or lot in a development—especially a resort development or higher-end development—a lot of times they already have that document for you showing your building envelope. That would be a question you'd ask the developer who's anxious to get your money: "Can you show me some diagrams of what the building envelope looks like?"

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Wrap-Up [: 43:00

Bill Reid: We've covered a lot of technical ground today, but I hope you see why it matters. You aren't just building a house—you're navigating a complex web of legal and physical constraints. And don't forget the HOA. Homeowners associations also have jurisdiction over your property if you're in an HOA.

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What's Next [: 43:30

Bill Reid: Next time on The Awakened Homeowner, we're going to shift gears and talk about more constraints on the land. I'll decide if I want to get into more details on easements or height limitations so you can better understand those.

We're going to keep going because there's a lot more to tick off the list so you understand. One of them is trees. If you live in a neighborhood with a lot of historic trees, your project could be dead meat unless we plan accordingly.

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Closing [: 44:00

Bill Reid: I want to thank you for spending this time with me. I can see there's a lot more traction going on with this podcast. It's slowly but surely growing, and I really appreciate the people who are joining. I would love to hear your comments, advice, insights, or questions about your project. You can do that on YouTube where you can make comments.

You can always reach me at my email: wwreid@theawakenedhomeowner.com. You can also check the show notes for some appropriate links related to this episode and to this adventure—The Awakened Homeowner and the BuildQuest application. That's going to be your go-to place whether you're designing or remodeling. It's deeper in development now.

I'm going to be looking for a very small group of beta testers for that—it will be free for architects, designers, and especially homeowners. I want to get some people using it. I'll have a link in the show notes where you'll be able to click and join the BuildQuest family. When it's ready, I'm going to start engaging with you to show you this crazy app that's going to help a lot of people, including design and construction professionals.

I'm Bill Reid, your home building coach. I will see you on the next episode.

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End of Episode 34