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Updated about 1 year ago,

User Stats

48
Posts
33
Votes
Matt Fish
  • Investor
  • Wilmington, DE
33
Votes |
48
Posts

Blown Away by the Cost to Subdivide $$$$$

Matt Fish
  • Investor
  • Wilmington, DE
Posted

I recently put a property under contract that was on a 1+ acre lot. I had a meeting with the country and they said that it appears that I am able to subdivide the lot into 3 lots - keep the existing house on one and create 2 additional. First, I would need to submit a minor subdivision plan to them for review. I had two firms come out to view the property and put together a proposal. Never having pursued a subdivision before, I had no reference for what the cost would be. Here was my thought process - get a survey, draw some extra lines on the plot plan, submit to the county and pay their fees to review and record = $3,000 tops. 

I am not sure I have ever been more wrong about anything in my real estate investing career. Both proposals were a few bucks apart and right around $40,000.  That's forty-thousand. My heart only just started beating again after reading through the proposal. Is this not insane? There is a price breakdown showing the various environmental studies that would be done, but am I crazy to be shocked by that number? Others that have never investigated a subdivision before, would you have guessed that amount?  Is this a comparable price to what others are seeing in other parts of the country?

Please let me know your thoughts and help bring some clarity to a situation that my brain just isn't able to understand. 

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