Development Project - Let's talk about process!

[Parker Maher]

Hi all! Thanks for taking the time.

Here's the scenario. My wife and I are fortunate to have only one form of debt, our house payment. We're sitting on some emergency savings as well. We have about 28k of equity in our home. 

There is a large piece of land that we would love to buy, rezone, replat (into 5 acre lots), and sell off the parcels. Aaaand ideally keep one for ourselves. We would like to build our own home on some land.

I think we could purchase the land for somewhere around 7k per acre and sell once developed for about 16k-17k per acre. 

I would love to know more about what this process would look like. What's a cost to bring electricity, water, sewer? Is there a ballpark range for development costs? All that needs to be done is build a road and get utilities there. I say "all that needs to be done." That takes a lot of time. I don't want to do a lot to the parcels such as grading. I would leave that up to the buyers of each parcel. 

Would love more detail and input on this! Any experienced developers out there?! 

Thank you,

[Greg Dickerson]

Originally posted by @Parker Maher:

Hi all! Thanks for taking the time.

Here's the scenario. My wife and I are fortunate to have only one form of debt, our house payment. We're sitting on some emergency savings as well. We have about 28k of equity in our home. 

There is a large piece of land that we would love to buy, rezone, replat (into 5 acre lots), and sell off the parcels. Aaaand ideally keep one for ourselves. We would like to build our own home on some land.

I think we could purchase the land for somewhere around 7k per acre and sell once developed for about 16k-17k per acre. 

I would love to know more about what this process would look like. What's a cost to bring electricity, water, sewer? Is there a ballpark range for development costs? All that needs to be done is build a road and get utilities there. I say "all that needs to be done." That takes a lot of time. I don't want to do a lot to the parcels such as grading. I would leave that up to the buyers of each parcel. 

Would love more detail and input on this! Any experienced developers out there?! 

Thank you,

There are no average costs as every site and project are different.  It really depends on the topography, requirements and proximity to utilities.

First step is to check with the city or county to determine if you can do what you want to do and what is required for all zoning approvals and the time frame. You want to find out what the bonding requirements are, inspections, CO process, General permit fees, proffers, water/sewer tap fees and the process of setting taps and connecting, do you need to install manholes or fire hydrants. Ask if you have to install curb, gutter, sidewalks, street signs, street lighting or any other special requirements. Are there any specific street design or access requirements, DOT requirements, permits or traffic studies. DWQ, Army Corp or any other environmental requirements or permits. You also need to check with the utility companies and get cost estimates from them for availability, fees, hookup charges, transformer and power line/power pole locations or relocation requirements, water, sewer, gas, cable etc

This is just a quick high level overview of the process but will give you some things to think about and a good starting point.