A New Residential Construction Guide The process that is used in lot entitlements could last for five years or more and is proven a pricey endeavor. Property mapping for a maximum of five lots is approximately $100,000. The estimated cost of those that exceed five lots is $500,000 or more. The determining factors of lot size and the number of lots are as follows: health-department regulations, the zoning and general plan, slope and biology. It is also a must for you to include the fees in processing, regulatory fees, different reports and studies conducted and other relevant fees. 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: – Reports that entails potential greenhouse gas
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– Drainage basis which regulates stormwater runoff
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– Awareness on environmental mitigation – School charges – Fees that is related to recreational activities – Information pertaining to physical secondary access – Fire related fees – Yearly payment of bonds Politics is an integral part when getting approval from authorities like city councils, planning commissions, and county boards. The process will be completed base on the level of approval and opposition that you were able to get. It is possible to do this one for four months or even for years that might cost you an estimated amount of million dollars. There are three things that property owners should take into consideration. 1. The entitlement of the property and sale remains the same – this option might bring the lowest price but nevertheless it requires minimal amount of money on your part and the property can be sold in no time. In some cases, it would be a better option not to undergo any entitlement since the property can be sold at a greater price. 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. Most of the time people go for this type of option. It is already expected for the who process to last for five years or more. If the contingencies are already accepted then the buyers must pay the seller of the property a non – refundable cash deposits. It is only possible to transfer the ownership to the buyers right after the final mapping of the property. 3. The property owners will take charge of the entitlement costs – The process is quite similar with 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.