Propose potential location for luxury home development?
Giani BrussichPro Member
New to Real Estate · Bedford, NY · Member since 2018 · 22 posts · 10 votesHi all,
This is more like is this reasonable or feasible? I wanted to ask the community if these seems like something that could be done and the work just need to be done. i mostly want someone to be like yes, that would work or no, delete this post.
ok, here are the details
- There is a local lot, in Westchester County, NY that is just shy of 10 acres. I do not own the lot and currently do not have funds to purchase the lot.
- It is currently being sold by a broker with an asking price of 950K but has been sitting for a while. It seems raised up and mostly level but would require some leveling. I do not know about electric or anything else.
- Neighboring comps are in the 1m+ range.
- Based on comps and surrounding neighborhood, i would think a developer could build 3-4 luxury homes, roughly 3500-4500+ sqft with 1.5-2acre lots. Make it a cul-de-sac and I estimate, could sell each for roughly 2.5 to 3 million each.
Is this a pipe dream? is there anything else i can consider? Has anyone else gone in with no money and proposed a plan to a developer and how did it go?
Thank you in advance
@Scott Wolf @John Bucci ok and thank you both very much. I appreciate the detailed feedback and comments. Definitely more involved than just throwing up houses. If I recall correctly, it was also listed with a pre-approved plan for a single house.
My last few questions, does the pre-approval plan for one house mean that is ALL they could be built or that they (the brokerage or current owner) didn’t go through the necessary steps to find out if it can be divided up? Is there a way I can find out locally without upfront costs, maybe by calling the town, if it can be subdivided?
You could try the planning office, but I'm not 100% sure. If it were subdividable, I'm guessing that the seller would have mentioned that and the price would be much higher. Especially if it's already being marketed with a building plan in place.
@Giani Brussich, this is definitely feasible, but you would need to contact a land use attorney in Westchester to see if it can be subdivided.
If the numbers actually work, I think a builder would have already jumped on a property like that, so there may be more than meets the eye.
Hi all,
This is more like is this reasonable or feasible? I wanted to ask the community if these seems like something that could be done and the work just need to be done. i mostly want someone to be like yes, that would work or no, delete this post.
ok, here are the details
- There is a local lot, in Westchester County, NY that is just shy of 10 acres. I do not own the lot and currently do not have funds to purchase the lot.
- It is currently being sold by a broker with an asking price of 950K but has been sitting for a while. It seems raised up and mostly level but would require some leveling. I do not know about electric or anything else.
- Neighboring comps are in the 1m+ range.
- Based on comps and surrounding neighborhood, i would think a developer could build 3-4 luxury homes, roughly 3500-4500+ sqft with 1.5-2acre lots. Make it a cul-de-sac and I estimate, could sell each for roughly 2.5 to 3 million each.
Is this a pipe dream? is there anything else i can consider? Has anyone else gone in with no money and proposed a plan to a developer and how did it go?
Thank you in advance
Hi Giani,
Just some of my thoughts.
Is there other development of this sort going on in the immediate area? If there is a lot, it MIGHT mean demand is sufficient to support high profits. If there is none, the question is why?
What does the local competing supply/demand look like for the price range you are proposing.
Are there "Target Demographic" buyers in the area, or will you have to attract them there.
Do you know what the "Target Demographic" wants--Cookie cutter McMansions or highly individualized residences. Stone walls, or fences and hedges, tennis courts nearby, or upscale pubs, etc...
Does the areas have any amenities to "Draw" your "Target Demographic" to the neighborhood, or is it "Out there all by itself".
Good Luck!
@Giani Brussich one aspect that may (literally) be a pipe dream...is the moratorium on new gas lines being installed by Con-Ed these days. So you'd probably have to use an alternative energy source for that.
Also, just because it is 10 Acres, does not mean you can put 3-4 homes, even if it looks like you can. You will still need to find the local code for minimum lot size, and if it is well and septic sort that out with board of health etc.
It's a complicated process that will require spending money up front with architects, attorneys etc., as @Scott Wolf said, to draw up plans and find out if it can be subdivided, etc. If it is possible, they would probably be selling the pre-approved plans with the site.
@Scott Wolf @John Bucci ok and thank you both very much. I appreciate the detailed feedback and comments. Definitely more involved than just throwing up houses. If I recall correctly, it was also listed with a pre-approved plan for a single house.
My last few questions, does the pre-approval plan for one house mean that is ALL they could be built or that they (the brokerage or current owner) didn’t go through the necessary steps to find out if it can be divided up? Is there a way I can find out locally without upfront costs, maybe by calling the town, if it can be subdivided?
@Scott Wolf @John Bucci ok and thank you both very much. I appreciate the detailed feedback and comments. Definitely more involved than just throwing up houses. If I recall correctly, it was also listed with a pre-approved plan for a single house.
My last few questions, does the pre-approval plan for one house mean that is ALL they could be built or that they (the brokerage or current owner) didn’t go through the necessary steps to find out if it can be divided up? Is there a way I can find out locally without upfront costs, maybe by calling the town, if it can be subdivided?
You could try the planning office, but I'm not 100% sure. If it were subdividable, I'm guessing that the seller would have mentioned that and the price would be much higher. Especially if it's already being marketed with a building plan in place.
@Scott Wolf great and thank you again Scott. Apologies for the delay Please have a great weekend and Happy 4th of July!
Hi all,
This is more like is this reasonable or feasible? I wanted to ask the community if these seems like something that could be done and the work just need to be done. i mostly want someone to be like yes, that would work or no, delete this post.
ok, here are the details
- There is a local lot, in Westchester County, NY that is just shy of 10 acres. I do not own the lot and currently do not have funds to purchase the lot.
- It is currently being sold by a broker with an asking price of 950K but has been sitting for a while. It seems raised up and mostly level but would require some leveling. I do not know about electric or anything else.
- Neighboring comps are in the 1m+ range.
- Based on comps and surrounding neighborhood, i would think a developer could build 3-4 luxury homes, roughly 3500-4500+ sqft with 1.5-2acre lots. Make it a cul-de-sac and I estimate, could sell each for roughly 2.5 to 3 million each.
Is this a pipe dream? is there anything else i can consider? Has anyone else gone in with no money and proposed a plan to a developer and how did it go?
Thank you in advance
The market is red hot right and builders are hungry for inventory so if there is a developable parcel with real potential listed on the market right now and hasn't sold there will likely be a reason. Best best is to discuss with a couple of top relators in the area to understand why none has purchased the property yet.