How to Subdivide Land? 10 Things You Need to Know in 2021
Jul 06, · What Is Subdividing Land? Subdivision is rather simple. It involves taking one tract or piece of land and dividing it into two or more tracts of land. A subdivision may involve tracts of land that range in size from hundreds of square feet to hundreds of acres. A subdivision may involve only one new tract—or datingfuckdating.comted Reading Time: 7 mins. Feb 16, · Everything You Need To Know About Subdividing a Property Summary: Cost to Subdivide Your Land. Local fees will cost between $ and $1, to split a property into two. It will cost $2, to $10, for more than two lots. In addition, a surveyor will charge between $ and $ for a mid-size property to be surveyed and platted. In This Article.
Join for free and get unlimited access, free digital downloads, and tools to analyze real estate. By our very nature, real estate investors are creative. One lesser-known creative technique to add value to a large property is subdividing land. These new lots increase the value of the land and can seriously improve your return wat investment. When you say the word subdivision to most people, it will most likely conjure up images of large tracts of suburban-style housing.
Yes, huge housing developments are indeed one type of subdivision—but there are much simpler forms easily managed by even the most novice real estate investor… with some caveats. First: While profitable, subdividing land is not always easy. It can also be expensive, with a lot of upfront costs.
Despite these issues, every investor needs to understand what subdivision is and how it works so it can become a part of their real estate toolbox. Subdivision is rather how to find base flood elevation. It involves taking one tract or piece of land and dividing it into two or more tracts of land.
A subdivision may lnad tracts of land that range in size from hundreds of square feet to hundreds of acres. A subdivision may sibdividing only one new tract—or hundreds. If you are thinking of subdividing land, you are going to have to look into your local rules.
See how things can get tricky? Generally, writing a legal description of the two tracts, recording a deed at the local courthouse, and submitting a certificate of title divides the land.
Skip necessary steps, and the building department will give you the boot when you apply for a permit. People typically subdivide their land so they can sell off a portion.
You may want how to make wine from apples subdivide land for family, so they can live close by.
Or lanc you want more lots for a housing or commercial development. Before dreaming of subdividing, check your local zoning. To do so necessitates a rezoning—a different game entirely. Apply for a zoning variance or waiver—after all, even the government occasionally makes exceptions. For a relatively simple subdivision—say, splitting a two-acre lot into two one-acre lots—then most likely you only will need to have a plat drawn, approved, and recorded at the courthouse.
You will likely also have to pay an application fee, which varies depending on local laws. What is a plat, you ask? Remember, the more information you can provide, the more likely your ks subdivision will be approved. And these pros will create invo,ved plat—a fancy word for a map or subdivision layout drawn by a surveyor or engineer. Your plat map will depict the subdivision or lots you want to create from your parcel of land.
Every jurisdiction mandates what a plat map needs to show, such as streets or utilities—so, again, know your local rules. What if your subdivision is not so simple? What about dividing 10 acres into 20 lots or constructing new streets and installing utilities? Typically, you start with a preliminary plat.
The local governing officials or planning board will review your design and either grant approval or ask for changes. This step requires detailed plans designed and drawn by a licensed engineer—no task for the average real estate investor.
You then grade the land, construct the roads, and install the utilities. After construction, you submit a final plat depicting your lots for approval and recording at the courthouse. After recording, you can finally start selling lots or constructing houses or buildings.
At a minimum, you need a survey for gratuity calculation what is the salary a plat. Expect to pay application and recording fees, too. Most subdivisions require some type of utility installation, and many also require road construction. Think about it: How will the new tract get water? And how will you access the plot? In addition, you may subdividinf impact fees, such as school impact fees.
These can total tens of thousands of dollars per lot, depending on your jurisdiction. Unfortunately, you must pay for all of these costs before selling any lots and earning a return on your money.
Smart real estate investors should familiarize themselves with common subdivision problems. Keep an eye out for these hiccups.
As you can see, subdividing land is rarely quick or easy. Approval can take anywhere from a few weeks for a relatively simple subdivision to years for rather complex ones in jurisdictions with a lot of development rules. However, despite the costs and time involved, subdivision can be quite profitable, and thus it is often worth the money and time.
Skip to content Back to biggerpockets. Get started. Sign in. In this article. What Is Subdividing Land? Why Subdivide? Whatever the reason, subdivisions create new tracts of land. That is why people subdivide. What Is Subdivision Platting? Raw land : Developing raw land typically falls under subdivision regulations. Hire a local surveyor or engineer who is familiar with the local regulations to guide you. Check to make sure it was properly subdivided before constructing another property.
Older parts of town : Here, you may encounter old, noncomforming lots. Find what is a retail sales when those lots were created—if that date is before subdivision regulations were enacted, then your lot is likely grandfathered.
If they were created after enactment and there is no plat subidviding you may have an subividing subdivision. Public hearings. If local laws require a public hearing for any zoning dragon nest how to get a mount, they may interfere. Consider talking with them directly. Do you have any experience with subdividing land? Let me know your question and comments below!
If You Would Like to Subdivide Your Land, Start with Your Town Hall
Here are the key 8 steps in the property development process when it’s come to the process of subdividing land. 1. Finding a site. 2. Due Diligence and Feasibility. 3. Purchasing the Site or Controlling Site Ownership. 4. Local Authority and Council Permits for Property datingfuckdating.comted Reading Time: 6 mins. Apr 08, · Another surprise to landowners attempting to subdivide their land is that the act of subdividing can raise any number of additional requirements and costs on your land. While your existing parcel may have been grandfathered so that it does not have to comply with some newer laws and regulations, undertaking a subdivision can trigger a new set of impacts and datingfuckdating.comted Reading Time: 9 mins. Nov 19, · Land-subdivision costs may include a land survey, legal fees, application fees, clearing the site, supplying utilities, inspection fees and permit costs.  X Research source If 94%(49).
Multiple times a year, I get a call from a seller with the question, can I subdivide my land? They have a large lot and think there is a buildable lot or lots that can be cut out of their tract of land. Here in the greater Boston area a lot that can be built on is scarce, so if you are sitting on a lot that can be built, it can be turned into cash. But more often then not, it is not possible for the seller to do so.
Depending on the circumstances it can be a very simple process to very complicated to determine if your land can be subdivided. Because of the high cost of lots for new construction homes, it is certainly worth a little effort. Here are points to bear in mind along the way that will help you make the decision about where to head with the possibility of subdividing your land. If you have a lot that conforms with all the town zoning for a buildable lot, it is called a Form A lot.
But, as long as you meet the requirements they have no basis to deny the subdivision. A Form A lot or lots must meet the town zoning requirements as follows:. If you have a Form A lot you will still have to pass by the conservation commission to make sure you comply with all the conservation commission regulations involving wetlands. If wetlands are found their will be wetland set back requirements.
It is not unusual to have a Form A lot to find out that the wetlands make it unbuildable. When I say subdivision, it could be cutting off one lot out of a bigger lot or several to many lots out of a bigger piece of land.
If your land is not a Form A lot all is not lost, you still may be able to get a variance to build on that land. The planning board is the place to start to see what the possibility is to get a variance. If you really have an inkling you would like to sell off some land to a builder for a subdivision or a single building lot, a REALTOR with experience in subdividing land will work with you to do all this upfront research.
But if you would like to do some research on your own, start with going to your town website or go right to the town hall. So I just gave you a quick, really simplified overview of subdividing your land. It can be quite complicated and can get quite expensive if you are talking about multiple lots with a road for a subdivision. There will be a decision that will be made once you feel that you have land that is sub-dividable:.
This means hiring surveyors, an engineer, a botanist, an attorney, etc… to prepare the documents and subdivision plan you will need to present to the town for approval. The up shot of going this route are if you are successful you will make more money, you have eliminated the risk for the builder if you are providing a subdivision with permits in hand or the guarantee of permits. The con is you can spend all of this money to fall flat on your face and lose all your development costs, you take the risk.
The higher the risk the greater the reward. Most homeowners will opt to go this route. They will sell the land as raw land subject to final approval from the town. Meaning a builder will agree on a certain amount and put down a deposit. The builder will have a contingency clause in the contract saying that the sale is subject to final town approval and permits on a…..
The benefit for you is your are taking no financial risk, the builder will carry the risk. The con is you will have to wait any where from months for final town approval depending on the project and you will get paid less for the land. This is the million dollar question. It is hard to give you a hard and fast rule so I will give you a ball park rule that will give you a rough idea.
Meaning there is no extensive engineering or permitting process. Please remember this is just a simple formula to get you into the ballpark of what your land could be worth. It is certainly not written in stone. There are many other factors involved including the length of the driveway, how far a builder may have to go to connect to sewer and water, if it is on septic plus any other number of variables that will increase the cost to build a specific location.
For example, our MLS is filled with large tracts of land, with tons of acreage, where you can put maybe two possibly three houses but it requires a foot road going over wetlands to just to get to those buildable lots.
If the lot is not approved and ready to go then a builder will start subtracting the costs from there. So if they have to do engineering, rip down an existing structure, build a road, they start subtracting the cost of such from the maximum that would be willing to pay for a lot approved and permitted. For example I had a piece of land I recently sold.
We estimated that a builder could get four lots, one would be an existing structure that would be rehabbed, on about a 4 acre parcel of land. There were a lot of wetlands to contend with. We had builders with competing offers and it sold for just around that amount. If you think you have land that can be subdivided, is a possible building lot, or you have a home that could be a tear down for new construction, call me.
I can start the research to see if we have a building lot or lots for you to sell. It is interesting to read what is involved in the process of subdividing land. It seems like it would be so easy, but obviously, this is not a simple process.
Thanks for sharing. Your email address will not be published. Massachusetts Home Values Contact Blog. Comments It is interesting to read what is involved in the process of subdividing land. Thanks for stopping by Nathan and adding your comments. Leave a Reply Cancel reply Your email address will not be published. Post navigation « Days on Market, how does it effect your home sale?