Buying land & building house: DE vs PA?

[rdlr]

Originally Posted by Ghost Town

But how to know this before buying a land?

For example, we have two lots. 1 acre for 50K and another 1 acre for 55K.
So 1st lot looks as a better deal, but eventually we find out that septic on this lot costs 15K instead of 6K on another lot. But how to figure this out in advance?

It's easy. When you purchase a lot, be sure there's a statement in the contract:
"Contract is subject to lot passing DNREC Requirements for installation of a standard septic system". I see it all the time. Many times, the multi list description will say "Lot has been approved for a standard septic system" or "Lot will require an elevated mound system". The sellers know. Cover yourself.

[Ghost Town]

Originally Posted by rdlr

It's easy. When you purchase a lot, be sure there's a statement in the contract:
"Contract is subject to lot passing DNREC Requirements for installation of a standard septic system". I see it all the time. Many times, the multi list description will say "Lot has been approved for a standard septic system" or "Lot will require an elevated mound system". The sellers know. Cover yourself.

Thank you!

[noob2]

Hi, sorry to bump this thread but although OP has probably moved on, I didn't see any mention of the (huge) systems connection fee that some towns in DE charge for new construction. This is a one-time hookup fee for a newly-built home. It is my understanding this fee is currently around $8000-10,000. (The money goes into an account that will pay for future expansion for the town in question. I was calling around today trying to get a better picture of utility costs. It's... complicated. ) It's a huge enough fee it would certainly be something I'd want to be aware of. Again it is a one-time fee *not* for a buyer of an already-existing property, but *only* for initial municipal hookup for a newly-built home, as I understand it. Anyway hope that helps.

[rdlr]

Originally Posted by noob2

Hi, sorry to bump this thread but although OP has probably moved on, I didn't see any mention of the (huge) systems connection fee that some towns in DE charge for new construction. This is a one-time hookup fee for a newly-built home. It is my understanding this fee is currently around $8000-10,000. (The money goes into an account that will pay for future expansion for the town in question. I was calling around today trying to get a better picture of utility costs. It's... complicated. ) It's a huge enough fee it would certainly be something I'd want to be aware of. Again it is a one-time fee *not* for a buyer of an already-existing property, but *only* for initial municipal hookup for a newly-built home, as I understand it. Anyway hope that helps.

Where did you get that information?
Most of the new construction in Delaware is taking place in subdivisions not located in any town. I only ask because I've seen hundreds of plans/specs regarding new construction, and never saw a hook-up fee for sewer/water services. Perhaps the builder rolls that into their hard costs.

Or, are you speaking of a custom built home you've contracted for to be built on a lot you own?

[noob2]

Hi, I spoke to someone in the Sussex County Planning office, and was referred to someone with the Sewer and Water Department. This was several weeks ago so, early 2017, call it.

I am not building my own house. I just wanted to understand what I could expect in terms of utilities - a realtor had warned me about the water rates - and how having private or municipal utilities might affect my budget.

The guy I spoke with from the city was very helpful and explained more about how their system works. It's a little complicated, especially if like me you're not used to it! Bottom line: city water is on the expensive side. Installing septic is (very) expensive. (In some cases way more than in other parts of the country - I assume this has to do with the land and technical stuff relating to the geography of the area. But the figures he quoted were 3-4 times more than anything I'd ever heard before: in the Georgetown area, if you are outside the muncipality, he claimed onsite wastewater can run 20-25K. It's about the type of systems that are required and the level of treatment. Beyond that I hope I never have to find out.)

Point is: you have to deal with whatever the house is zoned for. If you purchase a home within a town with a Sussex County sewer system, then the house is required to be connected to that sewer system. They charge you for frontage plus an annual service fee. Frontage costs vary widely by town. (Ex.: Dagsboro: .60/front foot year, so 100' of frontage = $60, + annual service charge of 286.00. Currently the highest sewer cost is in Bayview estates near MD @ $7.18/front foot: 100 of frontage = 718/year + 286 annual service charge. [Sussex County only operates one water service area in Dewey Beach. Any other central water systems are private utilities or run by the municipality in question.])

But to get back to your question: if you are in a newly-built home with a first-time hook-up to the city (i.e. Georgetown), then beyond those normal fees (frontage + annual service charge), then yes: there is an additional, one-time (massive) fee. I was told it's put into an account to pay for future expansion. And yes I think it's very likely that builders tag it on to the price of the house. One way or another, if you're buying or building a brand-new home, it's my understanding you will pay that fee.

Hope that helps!

ps: I have no idea how any of the above might or might not relate to the upscale housing developments that are springing up all over the state. Perhaps there are different zoning requirements, or maybe it's just folded into the overall costs in a different way? Would be interesting to find out.