Land & Lot Development
Lot Development Intro
Every home built needs a developed lot. Looking for a Lot? We can help! Every lot is different. Lot development includes all the work that is needed to take a piece of land and turn it into a homesite. The work needed varies with each lot and is dependent on many factors discussed below.
With "On-Your-Lot" construction, the homebuyer owns the land and should be thought of as the General Contractor for the whole project. As the General Contractor, the homebuyer selects a homebuilder like American Heritage Homes to build the house portion of the project on their homesite. Often much of the lot development work and the homebuilding work proceed concurrently and need to be coordinated. The homebuilder is often viewed as the primary subcontractor for the project and therefore provides much of the coordination.
Lenders, who are used to working with builders, will often only channel borrowed project funds though the homebuilder in the form of project draws. The homebuilder then pays out portions of draws to homeowners to cover lot development costs. At American Heritage Homes we list these costs as part of the allowances on our purchase agreements. The budgets set for these lot development allowances at contract time can be adjusted later with bank approval as needed, but to get a good handle on what kinds of costs a particular lot development project will incur, some research and leg work is required.
Typical Lot Development Costs
Typical costs listed below are provided as a general reference. This is not a price list for American Heritage services. AHH does offer some of the listed services and our prices may differ. The figures are intended to represent a reasonable price for each item that would be typical in the marketplace. Of course, as market conditions change, prices may go up or down dramatically. County fees and requirements often change. AHH always recommends obtaining actual quotes for fees and services when planning your development budget and beforing closing your construction loan.