Site Development

Failure to do site development planning and to consider the cost of site development can cause the Buyer's construction costs to increase dramatically. If you have an irregularly shaped, sloped and/or heavily wooded parcel of property, have more than one builder or excavator evaluate the property as to the potential cost to develop a building pad on your lot.

Before you negotiate with a builder, if your lot is irregularly shaped, sloped and/or heavily wooded, get an estimate in writing for clearing, removal and any and all necessary fill dirt needed. Make this estimate part of your building agreement. Do not settle for the builder or their agent going out to the property and saying, "This looks good and it will or should be within or close to the site prep allowance". Not doing this has had devastating financial consequences for buyers later in the construction process. Most builders will provide a site clearing, removal and fill allowance. This allowance is generally enough for construction on a standard, level, sparsely wooded lot. Any development cost over and above your building agreement's "allowance" will be the buyer's responsibility. Some builders prefer to just not mention this or, even worse, not tell you "true" cost until the work is complete.

In addition, when you are getting an estimate for site development make sure it is accurate to what your desires are. As an example you may want your home to be at a specific elevation but the contractor assumes something different or worse tries to cut corners and expenses and puts your home at an elevation less then the local building requirements. In such cases a "variance" will be required. (NOTE: Variance can also accrue by legitimate errors or oversights. Also, a builder may discuss with you the option [for parcel and budgetary reasons] to place the home below the required elevation in order to place the home on your particular parcel. In these and other cases a variance maybe required, and it is perfectly appropriate.)

Last Updated: March 01, 2005 10:43 PM