Nowadays, the demand for housing is extremely high. This means that new construction is a lucrative business to get into. If you plan to entitle lots, a lot goes into it. This expensive process can take time. There are many factors to consider, but with the right tips, you could be on your way to new residential construction.
Seek Approval from Government
You have to seek approval from a variety of boards. County boards, planning commissions and city councils have to approve your plans. If there is any public outcry to your building plans, this will affect them. Accordingly, if the public supports you, this helps. This step can take anywhere from a few months to a few years.
Seek to Take Action
- You can take three courses of action in terms of new construction:
- Agree that the owner incurs all entitlement costs. The owner then has full control of the mapping process and expenses.
- Entitle and sell the property “as is.” This will give you the lowest price but it does cost the least and takes less time.
Enter into an agreement where the homebuilder takes on the expenses of processing. The buyer releases nonrefundable deposits to the seller after approving contingencies. Closing happens after final map approval.
Seek Professional Advice
Homeowners should seek advice before making a decision to process a map. You want to find out if your plan is feasible before you begin. An engineer will be able to tell you the number of lots that you can obtain. Likewise, the professional will have advice on what qualifies for approval and what doesn’t. Contractors with a specialty in residential subdivisions understand smart growth design principles. You are more likely to get a solid estimate from these professionals.
There is always a need for new construction and housing. This does not mean that any type of housing is adequate. You have to consider the economic standing of most people, of the distance between jobs and how much open space you leave behind.