Contrary to popular belief, the typical advertised price of a building lot isn’t the actual cost of the lot. In reality, there are two crucial components to consider while evaluating the total cost of a building lot: acquisition and development-related costs. Given the uniqueness of every possible home site, a thorough evaluation is important before making the decision to buy a home building lot. Read on to learn all about the costs of a home building lot and what goes into them! You’ll begin to realize the immense value of working with a trusted builder and developer that can properly assess the improvement costs associated with a building lot before you make the move to purchase.
Read more: How to Understand the True Cost of a Building Lot in New ConstructionHidden Expenses of Developing a Residential Building Lot
The process of creating a residential building site can come with all types of hidden costs. Budgeting for these expenses is an important task that is usually accomplished by your custom builder, and these can range anywhere from about $50,000 to $100,000 or more. Below is a list of important components you should consider:
- Building permit fees and adequate public facilities and impact fees
- Engineering and other survey costs
- Clearing or grading expenses
- Home utilities (well, septic, or public water or sewer)
- Gas, electric and cable utilities
- Sediment control measures
- Stormwater management units
- Driveway construction costs
- Landscaping costs
All of these possible development costs require professional evaluation during the budgeting process or deciding to contract your home site. We at J.A. Myers Homes can help with this!
Beyond Simple Development Allowance Budgets
In addition to the costs mentioned in the previous section, there are other expenses that are usually overlooked yet important to consider. These are usually not evident at first glance and will require a trained eye to identify. These might include:
- Bad soil conditions
- Presence of groundwater or rocks
- Public improvements like gutter, curb, aprons, or street improvements
- Steep slope analysis
- Conservation requirements or other environmental impacts
Figuring Out the Total Finished Lot Expenses
The final cost of your finished home building lot encompasses the acquisition plus the cost of the finished lot. Understanding the latter proves to be the most difficult part of the equation, and the J.A. Myers team can offer comprehensive services that blend architectural designs and lot harmony, all while keeping your budget in mind. Our homes are all about value, so consider checking out one of our move-in ready home communities today!
For Any Home Building Needs, Contact J.A. Myers Today!
J.A. Myers Homes stands as a beacon of innovation, commitment, and inspiration in the homebuilding industry. With move-in ready homes and a dedication to building your dream home in one of our communities or on your own land, we are prepared to help. We’re dedicated to serving customers in Hanover, Gettysburg, Stewartstown, Dover, York County, Adams County, and Carroll County!Visit our website, reach us at 1.800.368.9990, or check us out on Facebook, X (formerly Twitter), Instagram, Linkedin, Pinterest, YouTube, or Houzz!