Subdivision

Will subdividing my property increase the value?

Yes it can! Subdividing a property can either net you a lot of additional cash, or even get you a brand new house at little or no cost! One of our favorite examples is a project that we worked on in Upper Makefield Township, Bucks County:

A realtor friend of mine introduced me to a man who could not sell his house. It was a single family house on 12 acres constructed in the mid 1980s. Half of the land was wood and the other half was open field. The dwelling was in the wooded area and on the market for about $700k. We subdivided the property into two lots. The owner was able to sell the house on about 6 acres for about $650k and then built his dream house on the new lot.

Any engineering or surveying firm can subdivide property; however Integrated Engineering, LLC knows that there are two other questions that must also be asked:

1.) Is it worth subdividing? Subdividing a large property can be a great way to make some extra money. The problem is that it costs money to subdivide. There are costs associated to: survey, infiltration testing, septic testing, wells, engineering, local application fees, county application fees, state application fees, fees en lieu of improvements and possibly actual improvement costs. In general the cost to subdivide are significantly less than the value gained. Before we get started Integrated Engineering, LLC, as part of a Due Diligence Report, will evaluate the approximate cost to subdivide. Thereby minimizing your risk.

This evaluation also includes possible improvement costs. Example 1: a client in Hilltown wanted to subdivide his property from one lot into two. The cost to subdivide was minimal; however the road he was on needed significant improvements. That required over a $100k to be spent in addition to the engineering fees... Example 2: a client in Buckingham Township wanted to subdivide her property in half. Buckingham has a very strict review cycle that can triple the engineering cost. In addition the township requires extensive landscaping along the property lines.

2.) Can I sell the new lots? Many times subdivision is possible; however other engineering firms will focus on the dimensional requirements and not the aesthetic requirements. Example 3: a property not far from our office (not an Integrated Engineering, LLC project) was subdivided to produce two additional lots. Both of these parcels were about an acre; however one was a flag/stem lot which placed them right behind another. Although these type of lots can be successful, Integrated Engineering, LLC understands that more land is needed. At least 2 acres... The parcels in the example are still on the market and have been available for almost 2 years.

Property Subdivision