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What to Consider For New Residential Construction Lot entitlement is something that one should take seriously since this can cost them a fortune at the same time a very lengthy procedure. Property mapping for a maximum of five lots is approximately $100,000. If you will go for more than five lots then you might spend $500,000 or more. There are factors that determine the number of lots and the lot size; this includes slope, zoning and general plan, health-department regulations and biology. It is necessary for you to consider the amount you will spend in conducting reports and studies, regulatory fees, processing and other relevant fees. The reports that are conducted must include the approval costs, anthropology and archeology, soils, noise, biology, traffic, and storm-water treatment. If the parcel maps are already approved then you can expect additional payments that are not just restricted to the following: – Reports that entails potential greenhouse gas
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– Retention basins that has something to do with the regulation of stormwater runoff
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– Determine whether the area is under environmental mitigation – School related fees – Charge for recreational activities – Information pertaining to physical secondary access Fees related to fire protection services – Yearly bonding fees Politics comes in place if one wants to win the approval of governing bodies like county boards, planning commissions, and city councils. The entire process will rely on the opposition and support that one is able to obtain. This kind of things can be done for a span of four months or for years that might lead to an expenditure of million dollars or more. If you own a property there are three things that you must consider. 1. Property is sold without changing the entitlement – This kind of option will not require to you to shell out significant amount of money and this could be sold for a shorter duration but you can’t expect to obtain greater amount of money once the property is sold. For some instances, the land is sold at a higher price there is no entitlement done. 2. Go for long- term contracts – This is a type of contract made by home builders who will be the one to process property mapping. This is the widely used by most people. The process is quite lengthy, this could last for up to five years. Homeowners are entitled to receive non – refundable cash deposits from their potential buyers if the contingency is already approved. The ownership of the property will only be transferred after the tentative or final approval of the parcel maps. 3. The owners of the property will shoulder all the expenses related to the process of entitlement – The whole process is comparable to the second option. The different between this option and the second one is that the owners will be the one who will process everything and all the payments.