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Filing and Legal Fees
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Filing fees, legal fees, and other costs associated with a development deal can run up to a sizable sum The largest portion of these expenses is normally the legal fees, closing costs, and points If your deal is a simple one and you are financing the property with the owner, your costs could wind up being less
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The hard costs of land development vary with the type of land being developed and its location If you have to pay to have electrical power, water mains, or sewers extended to the land, you could be looking at thousands of dollars If utilities are already available, the cost is much less In the case of rural property where wells and septic systems will be used, you don t have to worry about water and sewer fees The builder will have to foot the bill for a well and septic system
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Green Land Developing Could Double Your Income
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Clearing a piece of land is usually left for a builder to do Developers PRO sometimes have to pay for some POINTER clearing to allow the installation of Installing a road, even a gravel road, roads, but it is unusual for a developer can be very expensive The cost of a to prepare lots to the point where house road can be enough to make a develsites are cleared opment deal go sour This expense, Installing a road, even a gravel like others, should be determined road, can be very expensive The cost of while you still have an escape clause a road can be enough to make a develin your contract The last thing you opment deal go sour This expense, like want is to buy a piece of land fast others, should be determined while you and then find out that the cost of still have an escape clause in your condeveloping it makes the venture too tract The last thing you want is to buy a expensive to proceed with piece of land fast and then find out that the cost of developing it makes the venture too expensive to proceed with You will be left with a piece of raw land that is worth no more than what you paid for it, and you ll have to bear the burden of selling it Get estimates on all your projected development costs prior to making an ironclad commitment to purchase land Your engineering firm can help you to identify the types of costs to consider
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When things go right, developing raw land into a small number of house lots is not too complicated Let me give you an example of how simple it can be I bought 18 acres of rural land If I wanted to cut this acreage into two building lots, say, one 8-acre parcel and one 10-acre piece, I could do it for less than $1,000 The land would have to be perk-tested to be sold as building lots, but this would not be very expensive In my case, a formal survey would not be needed at the time of development Using town tax maps, I could draw my own plot plan Legal expenses would have to be considered The land has road frontage and available electrical service, so there s no cost in these categories Filing fees with the town would be minimal If I chose to divide my 18 acres into more than two lots, the game would change Creating more that two lots falls under different rules and regulations My engineering costs would escalate, as would most of my other expenses The amount of time needed to gain approval for a larger subdivision of the land could exceed one year In theory, I
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