Real Estate Agent · American Fork, UT · Member since 2014 · 32 posts · 7 votes
Hey I am analyzing a deal that has the potential to be subdivided into 2 lots with one of them being a flag lot. There is an existing house (which is already updated) on the front of the lot. It is currently .68 acres. The city has said that It can be subdivide with a flag lot. This deal is in northern Utah county. My questions are how much should I expect this to cost to subdivide the lot, develop it, and sale the lot? Is it worth the hassle? If I could keep the subdividing and developing cost below $35,000 then this will be a great deal.
Question 2: how much does having a flag lot behind you devalue a property? Also how much less would a flag lot sale for then a similar lot of the same size. No comps so far that I can see help me.
Hi @Barrett Anderson, I have subdivided a couple of lots, one in Bountiful and one in South Weber. There are often rules preventing a flag lot, but assuming the zoning allows it should be less than 35k.
It could be as low as just the survey and city fees (about $3,500) and the owner of the new lot would be responsible for utilities. Rough estimate based on what we spent would be 20k for utilities. Driveway should be part of the new house build.
Flag lots are tough primarily because the utilities get expensive. Furthermore, the houses don't sell for quite as much.
Talk to your city about impact fees. Also, are there any other developer requirements like curb and gutter and hard surface driveways that need to be put in place or bonded before they will grant you the plat.
Finally, make sure to talk to the fire marshal. There may be turn-around and/or sprinkler system requirements that you're not thinking of.
Hi @Barrett Anderson, I have subdivided a couple of lots, one in Bountiful and one in South Weber. There are often rules preventing a flag lot, but assuming the zoning allows it should be less than 35k.
It could be as low as just the survey and city fees (about $3,500) and the owner of the new lot would be responsible for utilities. Rough estimate based on what we spent would be 20k for utilities. Driveway should be part of the new house build.
@Barrett Anderson I am subdividing a lot right now in Bountiful. We received approval from Planning Commission and our last City Council meeting will be on Tuesday before we record.
Everything previously said by @Grandon Brimley and @William Hochstedler are spot on good things to keep in mind. When talking with your Fire Marshall the discussion will probably come up that you need to be within so many feet of a fire hydrant (in my case it was 400 ft) and a hose would have to wrap around the building for that. We will end up paying about 6k for the hydrant we needed.
As for the survey and plat work from an engineer office we paid just under 4k.
Also make sure the utilities for the new lot are accessible at this time. I have two projects where I ran into a moratorium on the street and because UDOT had just repaved I couldnt tear into the road for 2 years.
If the city already told you that it can be done you have won half the battle. I just read yesterday in the ABC's of real estate investing that "everything always takes longer and costs more than planned" this cant be more true then with real estate development. The cities are slow and there are all sorts of big ticket items.