Taxes and Utility Costs on Land (Larkspur: real estate, lease, broker)

[Debbly]

Here is what a realtor in the area is telling me. Is it accurate?:

As for taxes, the difference is whether or not there are special taxing districts in the area. This is what pays for he utilities brought to the property lines. You will notice that the undeveloped land has the lowest tax rates. Taxes are also less in the prairie areas.

Well and septic costs are the highest. It can cost as much as $15,000 to have a well installed on the western side of the state due to the depth of the rock layers. I think $10,000 is the average budget.

If telephone lines are not up to the property, many people get telephone through the satellite systems. You can get tv, telephone, and internet all through the same setup. Installation is usually not more than $200.

I don't know about electric. I asked someone here in the office, and he told me to budget $1500 for a new-build.

As for gas, if there is no line, then propane is you only option. Propane tanks are leased, but the fees are low.

Talking to the builder here, he told me that it would be average to budget about $20,000 for the installation of all utilities on a new-build in the western side. Of course, this is something the builder will budget in for you when you begin construction. As long as your financing is approved, the builder will be responsible for getting the utilities in place.

[BenWolfe]

You and your Buyer's Agent need to do a significant amount of due diligence prior to writing on a lot. You need to know what utilities are available and exactly how far they are from your lot line. I would not trust someones off the cuff answer about how much utilities will cost, you need bids. If a well is going to run $10k-$15k and you will be hard pressed to install a septic system for under $10k you are already over that builder's estimate before installing electricity (fairly expensive), telephone and gas.

You need to know what Special Assessments are or will be in place and will the Buyer or the Seller pay for the assessment (this should be specified in the contract). Many real estate agents don't know the first thing about selling vacant land and you do not want to be their first land client. Ask your broker how many lots they have sold and ask for references. You will also want to use a broker who really knows (and preferably lives in) your area of interest.

[Debbly]

I appreciate your input!

I have never built anything, and am completely clueless to all that needs to take place. Would really love to design and build my own home, though.

I'll check with the realtor I've contacted as you suggested and ask him about his experience selling land. Just from his explanation, it sounds like he's sold mostly existing homes, which I may have to settle for, although there are some beautiful homes out there in my price range.

Again, thanks for your comments! Enjoy your day in beautiful Larkspur.