Sub-Division & New Construction

[Account Closed]

Hi Everyone,

I'm looking at a potential purchase in the suburbs of Philadelphia. It consists of 2 pieces of property: (1) a 2 acre lot with a 2,000 sq. ft. home and (2) a 6 acre lot of land (no buildings on it). Since I've never bought land to sub-divide it nor have I done any new construction (I've only done standard fix and flips), I have a few questions. I'm hoping to get the community's perspective.

1. In talking to a number of contractors, new construction in the Philadelphia area ranges from $100-$150/sq. ft. What I don't know is what is typically included this price. The main things that I'm curious to know if they are included are (a) foundation work (digging a hole for the basement and the foundational concrete work) and (b) driveway/sidewalks.
2. In terms of new construction in a sub-division situation, the costs that I am coming out with are as follows. Does this list look complete and/or accurate?
   • Interior design professional (not sure about the cost yet, any feedback here would be appreciated)
   • Architect (to draft up the house plan)
   • New construction (cost/sq. ft.)
   • Foundation (if not included in the new construction #)
   • Driveway and sidewalks (if not included in the new construction #)
   • Landscaping
   • Deck (if the neighborhood calls for it, but not sure yet)
   • Permits (if not included in the new construction #)
   • Sub-division cost
     • Engineer plan write up (estimating $1,000 - $2,000)
     • Township fees and costs (not sure how much this is yet)
     • Lawyer fees (is this applicable?)
3. When I buy properties, I always include a 10 business day due diligence period to bring out my contractors, get quotes etc. etc. not unlike most of us on Bigger Pockets. What I can't figure out is how do I get all my ducks in a row within 10 business days for this type of question. It is reasonable to expect to get all the individuals involved in question #2 to get me concrete numbers and deliverables in 2 weeks? I've never done this before so I'm not sure if professionals like architects and interior designers work that fast. Not to mention how long a township's procedures are to actually get a sub-division approved. If not, what are the core things I need to do during the due diligence period prior to purchasing this land?
4. What else am I missing?

I'm hoping to given an update as this progresses. Thanks in advance for your opinion. I do appreciate it.

Thanks,

George Sarianos

[Theresa W.]

As a former city planner, I can give many examples of folks who thought they could subdivide into more lots than what was allowed. Drop in at your city planning office and get a copy of the zoning map, development regulations and learn about the subdivision process. A major subdivision like this could run $500+ in city fees, $2,000-$4,000+ from a surveyor, and take 2-3 months to approved if it needs review by a planning commission or city land use board. Totally doable, but this info will help manage your expectations. Good luck!