I have an investment property which I recently purchased in June this year that sits on a huge lot (about 3.13 acres) and I would like to subdivide the lot into two in order to build a new house on the other half to sell. The new lot would be a battle axe lot of about 7,215 square feet size and with its own driveway (at least 3m wide) with frontage to the public road. I spoke with an official from the county office today and after supplying him all necessary information, he says that the subdivision is possible. I am about to get a survey plats drawn for both intended lots. There are a couple of new home constructions (on regular lots) going on in the area which would be good comparables (between $410,000 to $460,000) for what I intend to do. Going by the 30% setback requirement in Maryland, the new home size may be no larger than 2,100 square feet in size. The driveway from the public road into the battle axe lot should be no longer than 30m and the area has public water and sewage (but no gas).
My question is, is this a good idea? What are the pros and cons? How much can I expect a new home construction to cost me? As far as the battle axe lot on which the new house would sit, any effects on the sales price for the new home?
Well "is it a good idea" is subjective, if the numbers make sense then it probably is. Is it worth it for you is another question. It can take a long time for permits, and not being able to drop a pre-fab home and having to build fresh can be frustrating for some. Could you just buy an empty lot and build on it? Are there lots available even? Is it worth it to knock down the house and build 4 townhomes or similar instead?
Building a home can cost $100/sqft or $200/sqft or even more. You should talk to a builder to see what they would charge to build in your area, prices can vary considerably!
@Francis Ifeacho have you gone down to the county to review to confirm the lot confirms within the zoning district you are in. Also be careful which part of Maryland you are building as there are school and other impact taxes that are more then $10,000 in some areas
In the DC area you may have a hard time building a home in that price range to have it return a profit