I live in WA state. I plan to buy this house and break it up into two lots - one with the house and one without. I am a newbie so need guidance/feedback on this (BOLD) approach.
1) I am of the opinion that two lots (one with building) will value more than one with large open space. I do not have data to support yet but would work on gathering it.
2) Is what I am trying to do legally/technically possible? Would county let me do it?
3) Who all do I need to work with? lawyers, architects? Is there one profile that can help from the start to end including county permits etc.?
4) Assuming that I have eligibility, will I get a loan to construct house on the second lot?
Thank you for your guidance and pointers in advance.
In Texas if you subdivide into parcels smaller than five acres (or ten in some areas) you have to supply all utilities to the property, and a road if it doesn't have access. That can be pretty expensive depending on where you're at. Like Jason said, check with the county before doing anything else.
Assuming the process it not too different in WA comapred to CA, @Mithun Bondugula, talk to the county or city's planning desk and see what the required lot size or frontage width is. A lot of that info is prob online as well. Get a civil engineer to prepare the map and update the legal description. You might need a survey as well.
You should be able to get a construction loan for the 2nd house... depending on your experience and lender's criteria, prob at least something like 60% LTV or LTC, maybe as high as 70%.
In Texas if you subdivide into parcels smaller than five acres (or ten in some areas) you have to supply all utilities to the property, and a road if it doesn't have access. That can be pretty expensive depending on where you're at. Like Jason said, check with the county before doing anything else.
@Mithun Bondugula. I will add to the good feedback @Jason Hsiao provided. Another consideration will be whether the land is in an incorporated or unincorporated area. Where we develop (MO), if the parcel has not been incorporated (even though adjacent properties/subdivisions are), the local municipality requires a "Major Subdivision" be completed of the parcel. Whether we are splitting one lot into 2 or 50, doesn't matter, requirements are the same regardless of number of total developed lots from Storm Water, Sidewalk Improvements, etc. I will only purchase property that has city sewer within 200 feet, water/electric service adjacent, and on an improved/paved city/county street. Raw land development costs (sewer, streets, curb/gutter, etc) are just too high for the current risks, in my opinion. I am currently working on 2 developments/lot splits, which has taken a little over a year so far. I should have Final Plat approval on one in a couple of weeks.
Additionally, you can request a meeting with all department heads at your local Planning & Zoning to discuss your proposed project. Generally you need to submit an application with your goals/intentions accompanied with a depiction of the land (a screen shot of the property from Google earth should satisfy). All departments will have a representative at the meeting to provide feedback and anticipated requirements.
@Mithun Bondugula You should look through your county's General Plan Land Use element (or local local city zoning, if in a more urban area). This will typically have the information for minimum required size of lot based on the land use (or zoning) to understand if subdivision is possible.