There are several ways to get a lot for your new home. Most of these methods do not require you to buy a vacant lot that has already been subdivided. For example, you would you buy:

1. A portion of someone's property.

Once a purchase contract was signed by the owner; that should subdivide the land off your property before you could have the title of luck. But finding an owner willing to sell part of its lands could be difficult, and getting the land at a reasonable price can be even more difficult. Your offer should specify who would be responsible for paying the costs associated with the subdivision, because then I would have more control over their work, timeframes, and the expenses charged.

2. An existing house on your lot.

You demolish the house and then build new ones. However, what you do not want to do is pay more for improvements (ie, that there is home) that will be demolished. Since its offer price for the property must take into account the cost of degradation, you should get estimates for removal of the existing house before submitting his bid.

3. A parcel of land (vacant or not).

The plot should have sufficient area to front and produce 2 or 3 separate lots with all lots fronting on existing streets. The aim is to avoid building a new street. You want to create a "turnkey" scenario: subdivide the original property, record the plan, and sell what many do not keep your new home. With the lots fronting on existing streets, its market target is not limited to builders. It could also include people interested in buying a single lot, either for investment or the future construction of their houses. If the original package included a house exists, the better, provided that the house had some value and its location within the plot does not spoil the efficient subdivision of the entire property.

The following examples illustrate the difference in the cost of land to buy a lot and buy a package that could be subdivided.

Example A:

2 vacancies acre parcel of land zoned for single-family dwelling on separate lots of 30,000 square feet, public water and sewerage price sales is $ 200,000; performance means: 2 lots

Its cost of ownership is reduced by the price you can make by selling the second lot. For example, if you sell the second lot of $ 150,000, the total cost of the land portion of its proposed new home is $ 50,000 (plus sub).

Purchase price: $ 200,000 ($ 100,000 each)

Less sales of second lot: $ 150,000

Cost effective land: $ 50,000 (plus expenses subdivision)

Gross savings: $ 150,000

Example B:

2 acre parcel zoned for single-family detached housing on lots of 30,000 square feet, public water and sewer, the existing home on one lot is worth $ 250,000, selling price is $ 300,000; performance involves: 1 building lot + existing house on your own luck

Purchase Price: $ 300,000 ($ 150,000 each)

Fewer existing home sales in his field: $ 250,000

Cost effective land: $ 50,000 (plus branch)

Gross savings: $ 250,000

Example C:

2 acres of vacant land parcel zoned for single family housing on separate lots of 80,000 square feet (can not be subdivided); public water and sewerage retail price is $ 200,000

The cost of land is the highest in Example C ($ 200,000), because you're buying a vacant lot that can not be subdivided. The subdivision that in the other examples that are not going to run $ 150,000-250,000 (the amount of gross saving). For good idea of what the cost would contact civil engineers in your area. Ask them what they charge to do a small (2 or 3 residential lots subdivision). This type of division can be seen by some municipalities as a subdivision of a "simple" or "minor", based on number total lots and the fact that no new road would be built. Be sure to consult a real estate lawyer for advice and to see that your purchase contract covering your flank.

Check out Nancy Chadwick’s new book Buying a Building Lot for Your New Home at http://www.LandBuyingandSelling.com/

HOUSE AND LOT FOR SALE.wmv

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