Home > Blogs > An Marshall > An Marshall's (staugustinerealtor) Blog

The Costs of Buying Vacant Land

By An Marshall

Real Estate Agent with Berkshire Hathaway - St. Augustine

May 21, 2009 05:45 AM

Examing the costs of Buying Vacant Land - Focus on Utilities:

As a general rule, about 25-30% of the funds for your project to build should be in the cost of the land and preparation to build. Land clearing can be a big cost as well as grading. This may be necessary to either bring dirt in, haul some away, or redistribute it to provide the base for the desired home. Costs will likely be higher if you have chosen the "sticks". The low price of pristine rural land might be offset by supplier surcharges of 10% to drive those long distances. Another consideration - is there a paved road to access the property? Many zoning departments require this before issuing permits. In Florida, it may just be my imagination, but it seems permits are required for every step along the way.

Some questions influencing the costs are how accessible are the utilities and water lines? In rural area, there are issues with the water source. Wells, alone, can run $5,000 or more depending on how deep they have to dig. With the city location, add budget amounts for connectors to and monthly service charges for water and sewer. If sewer is available, what are the costs to hook up to that system? If you need a septic tank, be sure the land can accommodate one. Add on for perk test, drain field, tank, and pump and electric for the tank.

I remember my surprise that there are plenty of "rural" lots in the City of St. Augustine. In St. John's county, there are impact fees - fees attached to the site if there has not been a structure at that site ever or more than one year ago. These are fees to help cover the county's costs for police and fire services, parks, public buildings, schools and roads. Depending on the size of the intended structure they can range from $2,500 to almost $10,000.