Residential land development involves a specific process for taking raw land and turning it into profitable, developed building lots.
As easy as it might seem to simply clear away trees and brush and then get to work building, the basic process addresses 5 distinct stages before any residential land development work can be undertaken.
Whether there is already land available or a residential land development company is seeking a good plot to develop, understanding these basic requirements can help.
- Investment and Economic Feasibility - The most important element when starting a residential land development project is calculating the economic feasibility of the project based on a particular land investment. Land prices and all the costs associated with its development must all be taken into consideration to determine whether a particular parcel is a wise investment for development.
- Zoning - Prior to purchasing a plot of land, a residential land development company must investigate local zoning ordinances and whether their chosen plot can be used in the way they would like to develop it. Zoning for residential land development will dictate the types of dwellings that can be built on the land, whether they are single-family homes, multi-family units, apartment buildings, or others.
- Land Acquisition - Once a residential land development plan has been created, economic feasibility assessed, and zoning limitations investigated, a residential land development company must then acquire the land if they have not already done so. In either case, it is recommendable to enter into these projects already having an idea of all associated costs and the profits that can be expected at the end.
- Project Financing - With the right plot of land selected for residential land development, project owners can then secure their financing and make the land purchase. Once the land is owned, a residential land development company can be hired to start the site preparation and building process.
- Site Preparation and Construction - Although it is the last technical stage of the residential land development process, there are many steps in the site preparation and building phase which may take as long as all previous phases combined. Residential land development work that starts with land clearing, grading, and other processes for site preparation and includes drainage, utility, and road installation will finally conclude once the planned houses have been completed.
Turning raw land into a beautiful new residential neighborhood takes good planning that involves this 5-stage residential land development assessment, acquisition, and modification process.
Once all five stages have been completed, project owners can then market their properties for sale.