Splitting one lot into two lots. Experiance Anyone?

Question

I found a potential deal but was wondering the process in splitting one lot into two lots.

Right now the property is 2 houses on .9 acres 200k. Each house has street acess.

If i can split them up i could sell each for 150k.

Does anyone have experiance with costs/process associated with this?

Thank you in advance!

Brandon

Account Closed · Answer

You're right Jon.  Some will not email anything.  I end every conversation when I'm in a county office like this:  "Thanks so much for your time; do you mind emailing me what we discussed, just to make sure we're on the same page?"  It's worked with a few of them.  In fact, I bought a lot that a bunch of builders thought was worthless last year, and sold a house on it for 554k, all because I went downtown and the guy emailed me saying I could build in these setbacks, ignore this water buffer, etc.

Jon Klaus · Answer

I've found that someone in the city will say something, sometimes with authority, but won't put it into writing.  Or even if they do, another one will overrule. We had a Sr. City Planner tell us we could do a common duplex wall according to our architect's plan, but another Sr. Planner who was assigned to our project later, nixed it. We went back to the first planner, but he said he couldn't do anything.

I agree, go to P and Z, but get your own insider consultant, too.  Or let your consultant deal with P and Z.

Karen Margrave · Answer

@Brandon Hughes You would need to check with the local planning department to get a list of all the fees, and their requirements. There's several thing that are taken into consideration, set backs, landscaping, driveways, to name a few. If you go talk to a Civil Engineer, they can advise you further. @Chad Ballard may be able to help you. Good luck

Tiger M. · Answer

Any local civil engineer will show you the costs, timeline and municipal requirements. A simple survey and map recordation could run below $5,000.00. I concur with @Karen Margrave.

Account Closed · Answer

this can be very profitable.. I've done It a few times now, and  still learning every day.. The best piece of advice I can give is get anything from the city/county emailed to you.. Can't tell you how many times one department said one thing and someone else from another department  contradicted and acted like I was the dummy!!

Jon Klaus · Answer

Huge ROI on that city visit!

Account Closed · Answer

@Brandon Hughes

I've done this a few times and I'm in the process now. In N.VA I can spend more than $30K on this process easily. Note: I am not an expert by any means.

The thing you must be aware of is that this process is not for the faint of heart and can be highly complicated; costing you time and money. I always look at what a subdividing/rezoning process may cost me and weigh that against potential profits on the out sales. Additionally, you may want to consider what you will lose by having your money stuck in this process when you could have used it on other deals.

Depending on how complicated this parcel is to subdivide you can be stuck in the bureaucracy or courts for years (attorneys/engineer/fees/etc) and spend more on the subdivision/rezoning process then the initial cost of the land. I believe in most areas it will all begin with whether or not your lot is conforming, non-conforming and can meet the land development requirements.

My point is, find someone in your area who has done this before (civil engineer/builder/developer) and see if spending the money on their service and the cost of going through the subdividing process makes sense. Because, the last thing I want you to do is play with Monty Hall and wager your money on what's behind door #2 or #3 without knowing.

Chad Ballard · Answer

Jonathan L. sure thing I will PM you.

Chad Ballard · Answer

Bill Gulley nicely done with the closing.  Like you said no surprise in CA you can't do anything without a license.

It is my understanding in CA you need a surveyor (LS) to sign off since CA doesn't allow anyone to do anything without being licensed.  If a civil was licensed before the early 80's then they might be able to do it.  There is a cutoff where  an older civil is grandfathered in to do surveys as well.  I don't remember the exact cutoff date all I remember is the date was before I was born, lol.

Page Huyette · Answer

I would request an informal review of your project with the county (or city) planning department.  That way you are on the schedule and will have the ability to speak to one or more people who can review your project and provide feedback.  I wouldn't take the advice of the counter guy in planning, as they are not usually as well versed as the more experienced planners.

One thing to think about during the process is whether or not the existing infrastructure (streets) can handle additional traffic & use.  Even if it is only one more property, that's something planning will take into account as well as any crabby neighbors that may want to thwart your efforts.

Bill Gulley had an excellent point:

if someone does show up to object, be prepared to overcome the objection.

Guaranteed someone will have an issue, given human nature and all.  I just posted something related to this, so am interested in any future progress you'll be making.

Splitting one lot into two lots. Experiance Anyone?

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