Find a lot, build your home. Seems pretty simple right?
For most, that is the easiest process to remember and what most builders will pitch you in a meeting. But the peskiest part of the formula often gets over looked…. Lot Improvement Costs! Lot Improvement Cost? What’s that?
When searching for the perfect lot to build your dream home on, a handful of factors come into play that are simply overlooked. Picture a beautiful, fully wooded lot in the neighborhood of your dreams. You’re standing in front of the lot envisioning your family enjoying summer barbecues, building snowmen, and hosting parties. In some way, shape, or form builders have to transform that fully wooded lot into the home where you can begin to make those memories.
So let’s just say we’re considering a lot that costs $100,000 and your dream home will cost around $400,000 to build; which works great because your overall budget comes in right at $500,000! Well, let’s take a step back and recognize that the lot will need engineering done such as survey’s, creation of site plans, grading permit submitted for, etc… And then once the county approves the plans we have to perform all of the work. We need to clear the lot so we can build a home and make sure we’re adhering to all county codes in doing so! So let’s fast forward to the point where we can now have a lot clear of trees in order to dig a hole for your dream home. We just spent about $50,000 to get from a lot full of trees and ready to break ground..
With the $50,000 in lot improvement costs, there will be a few options to choose from. The costs will take us over the total budget of $500,000 so we’ll need to look at less expensive lots for $50,000 or we need to build a home for $350,000. The moral of the story is it’s important not to overlook these factors, which is why Dreamcraft Homes provides you with the most expertise in the business. We are experts throughout the entire process from trees to backyard barbecues.
Lot Improvement Cost? What’s That?
