How to avoid some common mistakes.
Contacting City/County/Utilities for Quotes
Clients will often get quotes regarding the development of their parcel. Whether their Real Estate broker "ball parks" or they call the county, city, or utility company, or even listen to the seller's "experience." This seems like a great idea and may be a good place to start but please realize that the information gathered is not usually a fully inclusive quote and is almost never itemized. The result of which is often incomplete information and a muddied picture of what it will take to develop a parcel. An example is "the sewer company quoted me $40,000 to connect me." Sounds good, right? What is included in that quote? Often this does not include tens of thousands of dollars in equipment, materials, labor costs, or permitting.
This is why RCS exists, we will supply an itemized list of all expenses in a low (best case scenario), expected (what we believe is most likely), and high (worst case scenario) format. Our numbers are based on our experience and actual bids from trusted local contractors.
I have picked out my dream property and I know what house I want to put on it, I am all set, right?
Not all real estate brokers are alike. Though brokers must take a licensure examination they do not all share the same knowledge, experience, or expertise. Buying raw land is very different from buying an existing structure. Though your broker is your fiduciary they may not posses the necessary skills to guide you through the process of development.
The same can be said of builders. Neither of these individuals/entities develop land. Builders often construct their house on your lot from the foundation up. This means that the land must be ready to receive the building.
What goes into readying your lot? How much will it cost? How long will it take? The answers to these questions are different for every piece of land and may vary vastly.
This is why RCS exists. We will gather all necessary information and present it to you in a way that is understandable. With our additional services you can move flawlessly from purchasing your land, through development, and on to building with confidence.
A contingent offer may be a good option
Similar to the last lesson not all brokers know that an offer can be made contingent upon feasibility. What this means is that you may make an offer on a piece of land and if you find out that the parcel is not a good fit then you will not have to purchase it.
This is often the reason that good parcels may go pending multiple times before it sells. Most prospective buyers do not understand the process of a new build.