Cost of development for 3.5 acre residential lot

[Sean Spitzer]

This may be too broad of a question, but I was hoping for a little bit of guidance on the cost of clearing, grading, subdividing, cutting in a small road, running water, gas, electric, etc. I want to approach a couple builders about this project, but trying to get as much info as I can first.

I've been looking at various real estate investments and I came across a 3.5 acre plot of land in a pretty desirable around. The survey the seller had done shows it could be divided into 3 acre lots. There is a creek and other topography that limit the lots, but it looks like you could potentially do 3-4 lots in the .40 acre range, which is more common in this area. This area has homes from the 700's to well over a million and lots are $200k+ at least. I built a home near this area in 2018 and paid $330k for a .43 acre lot.

I found one BP youtube that discussed a 20 lot development took over $300k to get cleared, electrical, water, etc. I believe they said the water hookup was $127k alone.

Is a $200k budget for 3.5 acres to have an engineer map out the lots, clear the lot, grade, electrical, etc, etc to get the land ready to build homes? I know there's the process with the city, etc, but as far as development costs, what would be a decent range? The property is already zoned residential and is surrounded by houses. It is pretty heavily wooded.

Thanks for any help.

[Terry N.]

Originally posted by @Sean Spitzer:

This may be too broad of a question, but I was hoping for a little bit of guidance on the cost of clearing, grading, subdividing, cutting in a small road, running water, gas, electric, etc. I want to approach a couple builders about this project, but trying to get as much info as I can first.

I've been looking at various real estate investments and I came across a 3.5 acre plot of land in a pretty desirable around. The survey the seller had done shows it could be divided into 3 acre lots. There is a creek and other topography that limit the lots, but it looks like you could potentially do 3-4 lots in the .40 acre range, which is more common in this area. This area has homes from the 700's to well over a million and lots are $200k+ at least. I built a home near this area in 2018 and paid $330k for a .43 acre lot.

I found one BP youtube that discussed a 20 lot development took over $300k to get cleared, electrical, water, etc. I believe they said the water hookup was $127k alone.

Is a $200k budget for 3.5 acres to have an engineer map out the lots, clear the lot, grade, electrical, etc, etc to get the land ready to build homes? I know there's the process with the city, etc, but as far as development costs, what would be a decent range? The property is already zoned residential and is surrounded by houses. It is pretty heavily wooded.

Thanks for any help.

 Sean...I understand the need to clear the lot to maximize the site for development.  If it is as heavily wooded as you say, has a creek, and some natural amenities it might actually be worth more with 3 lots with preserved trees that allow for natural buffers between sites, instead of maxing out lots.  This is an intangible that may not be pencil-able without knowing how much natural area you could preserve.  Some buyers might be willing to pay more for a lots that have greater natural character.  Saving trees long term that were once in a more dense forest condition can be tricky if not done carefully.  Very specific tree saving measures must be done to make sure root zones don't get compacted by equipment.  Root zones can also not withstand fill (soil) being placed on them.  They will live for a few years, then the trees you thought you were saving will look like Dr. Suess dead trees.  Good luck in your development journey.  Seek out Civil Engineers with landscape architects on their staff or develop a relationship with an L.A. well versed in local codes.