NEWBIE- Subdivison Developement

[Sam Eligwe]

Hi all,

I need help figuring out this process from beginning to end. My mother just inherited a small piece of land. It's 4 - 4.6 acres located right outside of Washington, D.C area. The location of it isn't as important as the process we are about to embark upon.

She was considering selling it to someone else but luckily she spoke to me about the land and I suggested that she be patient and we try to see if we can work with a builder to perhaps create our first ever residential subdivision. The land is already zoned residential. But I have no experience developing a residential subdivision. I know this is a long haul process and I am not afraid of this opportunity. Here are a few questions I had....Please feel free to add more commentary if there are questions I did not ask that I need to know.

So out plan is to work with a well known builder who can come in a help with development.

How do I reach out to a Toll Brothers, M/I Homes D.R Horton, Beazer etc? Will they consider working with us and what are a few of the requirements they will need?

In a top level organization such as the ones listed, for something like this, who would be the point of contact I would need to reach out to?

What are the steps involved in developing a residential subdivision?

Will there be any upfront cost for us, since we own the land outright and we want to work with a builder to to develop the subdivision?

I love to read.......What books, articles, or websites do you recommend?

What steps have I overlooked?

Again I am willing to work. I know this is not something that can happen overnight but I believe in my capabilities I just need a little guidance.

[Ned Carey]

Sorry I really can't answer many of your questions. I will tell you why I can't answer them. Land is complicated. There is not as much competition in land becuase not many people understand it. Therefore it can be very profitable if you do take the time to learn.

I expect none of the major builders will work with you. They will buy from you but don't expect them to partner with you or mentor you in what you need to do.

Zoned "residential" is meaningless. How exactly is it zoned? How it is zoned determines how many homes can be build there. Different zoning has a density factor and this determines how many can be built. Can the zoning be changed? You can add value by changing to a more valuable zoning.

Has it been subdivided and platted? Has sewer and utilities be run? If you do these things you make the land more valuable by bringing it to a ready to build condition.

Land comes with a lot of environmental conditions. These can greatly restrict what you can do with land. Is there a stream on you property? Protected wetlands or woodlands? What is the shape of the property? A property can be zoned for 5 houses per acre but if environmental issues limit that to 3 the value is obviously less.

I know I have asked more question than I have answered. I would suggest you talk to builders large and small. Hopefully you will find someone who can send you in the right direction. Good luck - Ned