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To give some context to the "cookie cutters" that you're trying to avoid - for a home builder, the land component of the finished product has typically cost around 1/4 of the selling price of the finished home. Lately though, that equation has increased to nearly 1/2. The land component means having a lot that is ready for a home to be built upon and tapped into the required supporting utilities. Having a lot ready to be built upon, means proper grading for drainage, proper setbacks for the footprint, utilities to the curb, etc. So when you're touring one of these new neighborhoods under construction in Loudoun Co., it is a safe bet to assume that if the base price is $600k, then the land cost allocation is roughly $250,000 +/-. If the builder is building on land that they bought during the downturn, then it is likely that ratio is closer to the 1/4 area. If the builder is building on land that they just acquired for the project, then the 1/2 ratio is likely more accurate. This is also one of the reasons why prices have been increasing in general for new homes (and not just here in DC), and certain amenities are no longer included in the base price (finished basements). The increased land costs is being balanced against the decrease in cost for the basement on a base-price equation. In my neck of the woods, I see this happening in nearly all of the new construction projects, with the exception of Goose Creek. That project is being developed on land acquired at a discount during the downturn. The rest, market-rate land prices. This is also likely one of the reasons why you see more of the McMansions instead of the sub 2,000sf being built in masses. With land this expensive, the per square foot sales price is key for a home builder. It costs an extra $15k (if that) to build an extra 1,000 sf, that sells for an additional $135 per square foot. Depending where you are, say the average home price is $650,000 for 3,300 sf, it doesn't make much sense for a builder to deliver a smaller product that trims into their profit margin if the market has accepted the $650,000 price tag (which Loudoun clearly has). You can't build a 2,000sf home and sell it for $650,000, if financing is going to play a role in the sale. The appraisal likely won't support the number, and the bank won't lend on any number that isn't supportable by the appraisal.
I think you are generalizing things a bit..sorry to be frank about but trying to assist you. EACH lot will be different and one should never make generalizations. Generally purchasing a tear down with existing hook ups to public utilities states that utilities are present in the street and the tap has already been paid for (for water and sewer specifically) represents low risk, but not always the case. You can purchase virgin land as I have in the past where the owner has already paid for the tap fees, etc. The risk is when you purchase virgin land and there are no utility "MAINS" within proximity of the property meaning water, sewer, or natural gas mains are not running across or near your property where you simply pay the tap fee. Specifically, if you have to EXTEND the mains to your property (typically work done by developers), then you are talking big bucks where FCWA, FFX County, etc will charge you in the thousands to extend the prulic utility. There is a distinct difference between paying to "tap" into an available utility vs. extending a utility to a residence to allow one to tap into it. The latter is someting you want to avoid.
You can purchase a corner lot with a home hooked up to all utilities and but then find out that you cannot build the kind of home you envisioned (because corner lots have different zoning requirements, etc) and you will be stuck with a property that will not serve your original purpose.
Finally, I will only make advise you on one thing. DON"T BUY ANY LAND (with or witihout a home, utilities, etc) without having a professional (PE) peform a feasibility study for you. For approximately $3000, you can obtain a detailed report that will list all that is there, what you need, and estimated costs. This is money well spent IMO.
I see.. so the main is the artery and the tap is a vein to your home. Make sure there is an artery underneath your lawn! Yes, I am going to be careful about these issues and find out about them the best I can. But is there any other way than to make myself pay 3000$ for ANOTHER step? There are already too many beauracratic steps to jump through as it is. BTW, I often find listings for land where it's listed that the property has an approved plan. I didn't get the importance of this line when reading the listing, but now I do... It is one less hoop to jump through if a plan has been approved.
I see.. so the main is the artery and the tap is a vein to your home. Make sure there is an artery underneath your lawn! Yes, I am going to be careful about these issues and find out about them the best I can. But is there any other way than to make myself pay 3000$ for ANOTHER step? There are already too many beauracratic steps to jump through as it is. BTW, I often find listings for land where it's listed that the property has an approved plan. I didn't get the importance of this line when reading the listing, but now I do... It is one less hoop to jump through if a plan has been approved.
Hiring a professional reduces the bureaucracy you deal with. Home building is a complicated business. Have a professional get you this information up front will help you reduce costs later, and especially reduce risks. The layman doesn't understand all of the things that go into making a house operable, it isn't as simple as the things you see above ground, theres a lot of studies, design work, and approvals necessary for everything from adequate sanitary outfall to stormwater calculations and erosion controls so you dont get multi-thousand dollar violation fees during construction.
The most common failure of a feasibility study, a person buys a lot thinking its plenty big only to realize that its encumbered by flood plain, outside of a sanitary watershed, has hydric soils which double foundation costs, and may have restrictions on building footprint/FAR and setbacks.
Don't risk hundreds of thousands going in blind to these kinds of things, honestly, I've seen it ruin a lot of small time builders. And if it makes you feel any better, I don't do a lick of private development work or consulting, this is from someone who used to work in the industry.
To give some context to the "cookie cutters" that you're trying to avoid - for a home builder, the land component of the finished product has typically cost around 1/4 of the selling price of the finished home. Lately though, that equation has increased to nearly 1/2. The land component means having a lot that is ready for a home to be built upon and tapped into the required supporting utilities. Having a lot ready to be built upon, means proper grading for drainage, proper setbacks for the footprint, utilities to the curb, etc. So when you're touring one of these new neighborhoods under construction in Loudoun Co., it is a safe bet to assume that if the base price is $600k, then the land cost allocation is roughly $250,000 +/-. If the builder is building on land that they bought during the downturn, then it is likely that ratio is closer to the 1/4 area. If the builder is building on land that they just acquired for the project, then the 1/2 ratio is likely more accurate. This is also one of the reasons why prices have been increasing in general for new homes (and not just here in DC), and certain amenities are no longer included in the base price (finished basements). The increased land costs is being balanced against the decrease in cost for the basement on a base-price equation. In my neck of the woods, I see this happening in nearly all of the new construction projects, with the exception of Goose Creek. That project is being developed on land acquired at a discount during the downturn. The rest, market-rate land prices. This is also likely one of the reasons why you see more of the McMansions instead of the sub 2,000sf being built in masses. With land this expensive, the per square foot sales price is key for a home builder. It costs an extra $15k (if that) to build an extra 1,000 sf, that sells for an additional $135 per square foot. Depending where you are, say the average home price is $650,000 for 3,300 sf, it doesn't make much sense for a builder to deliver a smaller product that trims into their profit margin if the market has accepted the $650,000 price tag (which Loudoun clearly has). You can't build a 2,000sf home and sell it for $650,000, if financing is going to play a role in the sale. The appraisal likely won't support the number, and the bank won't lend on any number that isn't supportable by the appraisal.
Ok. I understand what you are saying: land is expensive, it is unfeasible/doesn't make sense/won't be backed by bank to build a smaller sized home on a rich property... also, I think there might be a shortage of high end builders - they are not going to waste their time making pennies building smaller homes when they can earn bigger rewards and better practice their art on bigger and grander structures.
I see.. so the main is the artery and the tap is a vein to your home. Make sure there is an artery underneath your lawn! Yes, I am going to be careful about these issues and find out about them the best I can. But is there any other way than to make myself pay 3000$ for ANOTHER step? There are already too many beauracratic steps to jump through as it is. BTW, I often find listings for land where it's listed that the property has an approved plan. I didn't get the importance of this line when reading the listing, but now I do... It is one less hoop to jump through if a plan has been approved.
I will say it again (in the hopes you will get it), hire a pro to help with evaluating a lot. It is a big investment and 50% of the cost of the project. Approved plan does not mean you are 100% out of the woods. Requirements change and you may need to resubmit the plan and the plan itself many not meet needs of what you are trying to built. Good luck.
I think you are generalizing things a bit..sorry to be frank about but trying to assist you. EACH lot will be different and one should never make generalizations. Generally purchasing a tear down with existing hook ups to public utilities states that utilities are present in the street and the tap has already been paid for (for water and sewer specifically) represents low risk, but not always the case. You can purchase virgin land as I have in the past where the owner has already paid for the tap fees, etc. The risk is when you purchase virgin land and there are no utility "MAINS" within proximity of the property meaning water, sewer, or natural gas mains are not running across or near your property where you simply pay the tap fee. Specifically, if you have to EXTEND the mains to your property (typically work done by developers), then you are talking big bucks where FCWA, FFX County, etc will charge you in the thousands to extend the prulic utility. There is a distinct difference between paying to "tap" into an available utility vs. extending a utility to a residence to allow one to tap into it. The latter is someting you want to avoid.
You can purchase a corner lot with a home hooked up to all utilities and but then find out that you cannot build the kind of home you envisioned (because corner lots have different zoning requirements, etc) and you will be stuck with a property that will not serve your original purpose.
Finally, I will only make advise you on one thing. DON"T BUY ANY LAND (with or witihout a home, utilities, etc) without having a professional (PE) peform a feasibility study for you. For approximately $3000, you can obtain a detailed report that will list all that is there, what you need, and estimated costs. This is money well spent IMO.
Fairfax County Water charges an exorbitant amount for the tap fee. They will not extend the service to your house. In 2011 it cost me almost $13,000 just for them to tap the main that runs right across the front of my property. I had to pay another $2,000 or $3,000 to have a contractor extend the line to the house (approx. 300 ft).
Fairfax County Water charges an exorbitant amount for the tap fee. They will not extend the service to your house. In 2011 it cost me almost $13,000 just for them to tap the main that runs right across the front of my property. I had to pay another $2,000 or $3,000 to have a contractor extend the line to the house (approx. 300 ft).
And that is exorbitant why? I think people should realize what it costs to build things, perhaps then people would understand why infrastructure is expensive. You have to put man hours, materials, land disturbance, re-establishment of pavement all on the sum of what it costs. A two man crew for 6 hours not to mention back hoe, etc costs money. Meters cost a lot of money. Things cost money.
It's exorbitant because my contractor said he could have tapped the line for less than $1,000 so why does FCW charge 13 times that amount? And because it's a monopoly they won't let anyone else do the work. On top if that, their price has gone up since then.
It's exorbitant because my contractor said he could have tapped the line for less than $1,000 so why does FCW charge 13 times that amount? And because it's a monopoly they won't let anyone else do the work. On top if that, their price has gone up since then.
Your contractor is full of S, 300' of run with a 1" tap, plus the meter, plus the valve box, plus the new fitting T necessary on a wet line, plus the back hoe, plus the 2 man crew, plus the replacement of any road work/sidewalk thats disturbed costs more than $1000. He sold you a bag full of horse manure, and you bought it.
You can barely get an AC fixed for $1000, let alone any major site work/tapping of a live water main. Come on, get outta here with that.
Last edited by tysonsengineer; 05-07-2014 at 12:31 PM..
Your contractor is full of S, 300' of run with a 1" tap, plus the meter, plus the valve box, plus the new fitting T necessary on a wet line, plus the back hoe, plus the 2 man crew, plus the replacement of any road work/sidewalk thats disturbed costs more than $1000. He sold you a bag full of horse manure, and you bought it.
You can barely get an AC fixed for $1000, let alone any major site work/tapping of a live water main. Come on, get outta here with that.
TE, read the post again. The $13K was for the tap, alone, not the 300' run to the house.
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