Looking into Raw Land Development to Subdivide

[Connor Darrow]

Hi all,

I have a 6.5 acre residential zoned property in Birmingham, AL. We were interested in creating a small gated subdivision of 13-15 houses. We have quotes from engineers to do the surveying and engineering services required to subdivide the property. However, before we go through with it, we wanted to determine how much it would cost roughly for sewage lines, water, power, land clearing and landscaping, roads, lighting, curbs, etc. Does anyone know how I can find out a rough estimate before involving the engineer and using the drawings for a quote? Just want to make sure this is a worthy investment and not something that isn't worth the time or effort. From what I understand online the typical price for infrastructure per lot is around $40,000? I am told that locally sewer alone costs $100-200 per linear sq ft and we need at least a 160ft extension to get sewer onto the property and it has to run along our road as well to connect to each house.
Thanks in advance

[Jay Hinrichs]

Originally posted by @De Rasche:

Local numbers can be found by meeting with a builder of the scale hoem you are thinking.

In our area about $30,000 a lot in one city that has tree, sidewalk, lights, etc.

Five miles away in another town it is about $19,000 per lot with no sidewalks, lights, etc. 

Generally in our area you can 1. survey into lots and then sell at a wholesale price to builders and they shoulder development cost.  You cash out early and move on to your next investment.

2. You can put up the land and then do a split at closing with a builder partner who funds the development.  Risk here if a mechanics lein gets involved and what fees and management costs ae added to builder's final number.

3. develop yourself.  It is not just cost it is knowing subs that are quality and will know code approval porces.

Please talk with a local mid size builders for local trends.

OK first off the engineering firm should be able to get you an engineers estimate its the first thing i do on a land development deal in an area I am not super familiar with this usually cost me 2 to 4k of due diligence money up front..  a pittance to what you could lose if you dont know your costs going in..   40k is a good number though without long offsite improvements..  Topography is a huge deal here as well I know B ham quite well and there is a lot of topography in that city.  So dont know if your proposed improvements are on sloped or level land or some pretty steep land with cuts and fills and deep sewer to make gravity flow.  the 40k we are paying now is on basically level dirt.. although in starting my next 30 lots  moved 10k cubic yards to create better building envelopes and this is on parcel that if you looked at it from the street you would swear its flat..  We also had to make a sewer run to the local lift station that required 30 plus foot depths to get to it and going over a near vertical embankment for 60 feet..  so its stuff like that you need the engineer to look at up front they can do this with Google type topos that should be avaliable to them .. Its not a replacement for actual topo but it gets you into the general feel of the design.

while the contractors who build this stuff will have unit costs they wont know the units until the engineers tell them what they are .. ergo start with the engineer and have them do an engineers estimate which will be usually within 10 to 15% of actual s.. And usually high.