Elevation
The elevation of your home, whether it is on a hill or in a low-lying area, is one of the first things you need to look at on your home site. If your home is in a lower elevation, look at the potential for flooding or run-off from homes higher up. Know who is liable for any damages that may incur as a result; if you are in an elevated area, you could very well be held liable for damages to homes in lower level areas as a result of your home's grading.

You should also take into account the actual slope of the plot of land and how it will affect your driveway, recreation areas, and so forth.

Direction of the house
You will also want to look at the direction your house will face. Look at your home's floor plans and see where the sun will be rising and setting in your home and the effect it will have on various areas of your home. If you want a sunny area, keep in mind that full sun can cause fading to your home's furnishings.

Traffic
Another thing to take into consideration is traffic in the area. Is the home site secluded, or is it off of the main street in the development? The area of your home site will make a big difference in terms of traffic; if your home will be in the front of the development, you will most likely get heavy traffic at all times, whereas homes in the back will get the least.

Views
You may select a home site based on its lovely views, but make sure those views aren't going to be compromised eventually. Find out what the builder's plans are; you may choose a wooded lot thinking it is going to remain wooded, only to find that the builder opens a whole new section of homes right behind you. You will also want to take into consideration city planning. If you are building a home off of a large parcel of land, there is a good chance it could be commercially developed in the future, compromising your views.

Shape
You will also want to consider the shape of the lot when deciding on a home site and how your home will fit on to it. Measure or map out how much room the home will actually take up, then determine if you have enough room left over for the things you would like to do. For example, is the backyard going to be big enough for the swimming pool or swing set you want to put in later?

Choosing your home site is an important decision you must make, and there are many things to take into consideration when deciding on where you build your dream home.