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brandygold

Developer fees - soil amending

9 years ago

Can someone help me wrap my head around some added costs for developments in my area?
The lot we would like in a development that has had little activity in the 6 years or so on market (though a beautiful wooded area with an arboretum ) is overpriced and that's pretty much why they haven't sold. Even our builder - no relationship to the development - says it is about 25k over priced. And they just INCREASED the price in January by 15k after being on market all this time.
The lot will require about 5k in clearing, 7k for sidewalks, 8k in sewer hook-up, 7-11k for soil amending (the builder we are using has built two homes in this development - though he is not associated with the land or developer and one lot he had about 7k in deeper footings/amending and the other lot he had about 11k in costs for footings/amending due to the soil quality) - he doubts we would be at the 11k point.
We made an offer that took into account these costs. They countered with the listing price. Ugh. So their heels are dug in from the get go.
My question really is ... do developers ever pay for the soil amending? Or is it just common that you buy the land and you fix the land and the developer doesn't actually do anything - I mean we have to pay for everything anyway - sidewalks, sewer hook-ups, land clearing, etc.
I feel like they are being unreasonable but maybe I don't have proper perspective?

Comments (14)

  • 9 years ago

    How many homes are planned for the development and how many have been built so far?

  • 9 years ago

    There are 41 lots (they are 1-3 acre lots). 15 are now sold/pending.


  • 9 years ago

    It is likely to vary from region to region or municipality to municipality :-) And also with the developers. Because of my business I often work with developers and I'd have to say that what you outline is just about the opposite of what happens here. Here, in an actual development (and that terminology can have different meanings), the developer is responsible for all the infrastructure and the lots will be ready to build as is.

    In fact, there is a smallish (5 homes) development going in almost across the street. The developer has already cleared the land, graded, laid water and electrical lines and put in streets and informal sidewalks. The lots are ready to build. I noticed when walking my dog there yesterday that two lots have been sold so I would expect construction to be starting up soon.

  • 9 years ago

    Garden Gal - I think that is typically how it is here too. But something is going on with these higher end developments (or developments that want to be perceived as higher end). They are all now requiring you to pay all of these extra fees on top of a premium lot price.

    And it sucks. Because I DO REALLY want to be in this development near the arboretum but good lord. :-(

    Maybe we will counter back with their asking but they have to pay all of these 'developing' fees lol

  • 9 years ago

    These are considered "premium" lots as well - view properties only a short block up from beach. And they are not cheap :-)) Maybe they have wrapped all those fees into the asking prices but at least the lots are 'finished' and ready to build.

  • 9 years ago

    Yeah - I think these developers are trying to be greedy. They clearly aren't motivated though since the two developments we are looking at have been on the market for 1500 and 600 days respectively. It took me six months to find a lot and area that I could envision for us ... and it has to be listed with a jerk lol

    Business is not personal. Business is not personal. ha.

    I guess we will go back - maybe they will assist more with the developing costs as long as they get to say they got asking price lol


  • PRO
    9 years ago

    Every developer and development is different. Different.

    You have to decide if you want to live in the location and incur many of the expenses that a stubborn developer refuses to acknowledge.

    Have done some "comparison shopping"? Is this the only location and the only developer which fits your criteria and budget?

    If, at the end of the day, you will be happy building and living in this development, with the added expenses to you--then go for it.

    On the other hand, if the expenses put you in a precarious situation or an untenable situation, forget it.

    Remember that buying the land is only the beginning of the saga. If you think that's challenging, go through the archives here and read the trail of tears of many who have designed and built a custom home.

    Your struggles (and battles) haven't even begun yet...

    Good luck on your project.

  • 9 years ago
    last modified: 9 years ago

    Soil amending? Maybe some loosening if there is the usual compaction by equipment but wholesale, site wide amending?

    No.

    https://s3.wp.wsu.edu/uploads/sites/403/2015/03/soil-amendments-3.pdf

    Plus any and all digging needs to avoid buried utilities.


  • 9 years ago

    This discussion is not about gardening. They are not talking about amending for planting but amending the soil for construction purposes. Very different and very common in many areas, depending on the soil types.

    And if the OP is supposed to pay for the clearing of the lot after purchase, among other costs, I highly doubt there are any underground utilities existant at this point!!

  • 8 years ago

    I have built a few times before and so I am familiar with the process. This is the first time that we have come across a lot that required the soil to be amended for constructing plus developer not clearing land or paying for sidewalks/connections.

    This is actually our biggest hang up as our house plan is ready to go and ready for our builder - separate from developer - is ready to go. We just have to decide on land and while I have never had a developer this stubborn before I wanted to make sure that I wasn't being unreasonable either.

    sorry I now realize this might have been posted on the wrong forum

  • 8 years ago

    Not the wrong forum at all :-) It's just that folks that focus on gardening have a different interpretation of what soil amending is, hence the comment not to. And even that is not a uniform approach as sometimes the situation just requires it.

  • PRO
    8 years ago

    I may be misunderstanding, but it sounds like you're purchasing just a serviced lot in a development. The fees listed appear to be typical construction costs. Clearing, sidewalks, utility hookups etc. Noting that you mention prior deeper footings because of existing soil quality leans towards a development with poor bearing soil depths. (one lot could be great, with a basic dig out, another terrible) Amending could be just how they are wording that fact, as poor bearing soils require a fill / compaction process to be adequate for building code - or it could pertain to what we deal with here in the PNW, where 'amending soils' in a new build typically refers to a selected option of the storm water management regulations that we choose from (or a geo-technical engineer chooses) as part of the required 'storm water plan' we have to submit for Natural Resources Review. All that said, it's just a standard expense in our build process now, where prior we simply connected drains to the developed storm water system supplied to each lot.

  • 8 years ago

    One way or another the buyer ends up paying all of the costs associated with building a house. How it gets broken down into bits and pieces on an itemized bill is completely irrelevant. Whether it's a million dollars with everything included or $1 with a $999,999 "bloated profit fee" the end result is still the same.

    Bottom line is are you willing to pay the best total price you can negotiate with the seller? If yes you're good to go, if not, then keep looking.