What to Consider For New Residential Construction The process that is used in lot entitlements could last for five years or more and is proven a pricey endeavor. The estimated amount in property mapping of five lots of less can reach up to $100,000. The estimated cost of those that exceed five lots is $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. Aside from the latter, you must also consider the amount you will spend got the regulatory fees, processing, reports and other studies conducted. It is imperative on your part to make sure that the content of the reports conducted include storm-water treatment, approval costs, anthropology and archeology, noise, traffic, soils, and biology. If the parcel maps are already approved then you can expect additional payments that are not just restricted to the following: – Researches involving greenhouse gas
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– Drainage basis which regulates stormwater runoff
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– Determine whether the area is under environmental mitigation – Fees that has something to do with school – Fees that is related to recreational activities – Details relate to secondary access Fees related to fire protection services – Yearly payment of bonds 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. The expenses might be up to a million dollars or more, this could also take place for a span of four months or years. 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 entire process might last for a span of five years or more. Once the contingencies are approved the probable buyers is oblige to give non – refundable cash deposits periodically to the seller. 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.

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