Costs of a real partition and subsequent development?

Dear forum,

we have looked at a plot of land that we really like and where we can imagine building a single-family house. However, this plot is not serviced. Because a very large plot (2,000m2) is to be physically divided. The resulting plot we are interested in would then have 850 m2 and would be a flag lot. Now, the crucial question for us is: what will the plot cost us besides the purchase price and additional costs until we can build on it?

Silver lining: there is already a project plan for a semi-detached house on the plot because previous interested parties' financing fell through. I spoke with the project manager, whose job is still not entirely clear to me. Because he has already designed a complete semi-detached house including floor plans, costs, etc. for the plot, but he would not build the house in the end, rather he would only take care of the plot’s servicing and then hand it over to a developer!? Anyway, his cost breakdown for the servicing is as follows.

ADDITIONAL CONSTRUCTION COSTS:

Drinking water connection	€2,500
Wastewater connection	€3,600
Rainwater drainage	€3,900
If necessary, engineering planning for drainage	€1,000
Electricity connection	€3,500
Telecom/media connection	€1,500
Path maintenance/construction site driveway/sidewalk protection	€5,000
Construction of paved surfaces for access path, terrace approx.	€13,000
Subdivision of the plot approx.	€1,800
Construction of access from public land	€8,000
Building permit fees approx.	€1,100
Earthworks/excavation/removal approx.	€7,500
Final surveying approx.	€1,100
Total:	€53,500

CONSTRUCTION PREPARATIONS:

Demolition and clearing work on the named plot	€12,950
Construction of a construction road, area for materials, construction vehicles	€8,500
Commissioning construction electricity connection	€3,500
Construction water connection, frost-proof execution	€3,500
Provision of construction fence during construction period until shell completion (width approx. 15m)	€2,500
Total	€30,950

PLANNING SERVICES:
Design planning based on individually coordinated specifications of the building family
Preparation of necessary documents for the financing bank based on the individual design planning
Preparation of necessary documents for the notarial purchase contract or, if applicable, the subdivision of the plot
Carrying out ordnance survey / hazard investigation
Preparation of digital site and elevation plans for building application
Preparation of a digital tree inventory plan
Preparation of an expert assessment / evaluation of the existing tree stock
Obtaining any necessary police permits for parking bans etc.
Preparation of soil report including soil analysis (LAGA)
Preparation of necessary documents for applying for the certificate of completion
Total: €19,050

When adding all costs together, the total comes to €103,500.

Of course, I know that no one here can evaluate the costs in detail because every plot is individual, you don’t know the details of the plot, etc. Nevertheless, €100,000+ seems like an insanely high amount to build "a few meters" of road and to lay cables and pipes from house A to plot B. My questions:

[*]Is €100k a realistic figure to subdivide and subsequently service a plot? (We’re talking about about 40m of access and probably about the same for cables, pipes and wastewater)
[*]Is there any potential to save money in the above list?
[*]What can be done by oneself?
[*]What approach is recommended for such servicing?

Thanks for your help in putting this matter into perspective.

Christoph

There are too many things mixed up here for me. Construction road, terrace, etc. do not belong to the development. Apart from that, I am highly skeptical that you can pave the access road to the rear property, its courtyard, and the terrace for 13k. At best, as own work, but certainly not by a professional. 40m of access road at 3m width is already a mere 120 sqm; with terrace, courtyard, and possibly a carport, you get into the range of 150-200 sqm of paved area. The material alone almost consumes the entire budget, professional work is not feasible. The length is also charged accordingly by the suppliers, or they place a transfer shaft at the property boundary, and everything beyond that is the responsibility of the builder.

Tendentially, all of this seems somewhat underpriced to me, but with the whole story, confusion can also easily be created by shifting items. Ultimately, the only sensible approach will be that when you create the rear access road, you lay the utility connections or corresponding empty conduits at the same time and do the same for the sewer.

However, this property is not developed.

According to the cost breakdown, the property is developed. However, a house also needs to be connected to the utilities, which is what the prices in the additional building costs refer to.

Additional building costs occur with every house construction. They are practically independent of this specific project and depend on the property itself.
You can initially deduct them again in this calculation, but they will still come your way.
Is construction power so expensive? Then they have really increased it – okay, a buffer is always good, in the end it was also spent.

Construction preparation: these are costs for demolishing the existing structure.

Planning services: this is a mix of services and (hopefully) the corresponding fees.
You can organize everything yourself, but that’s what project managers are for. Some call themselves project leaders, general contractors, and there are also brokers who offer something like that. So what. Basically a coach for the house construction.
By the way, the district is responsible for no-parking zones, not the police.

Creation of paved areas access path, terrace approx. €13,000 division of the property approx. €1,800 creation of access path from public land €8,000 building permit fees approx. €1,100 earthworks / excavation / disposal approx. €7,500

A large part of the prices will refer to the division and access path of the rear property. It seems so. But it is still the duplex project, so hard to separate.

I talked to the project manager, whose job is still not entirely clear to me.

See above

we looked at a plot of land that we really like and where we could imagine building a single-family house. However, this plot is not developed. Because a very large plot (2,000 m2) is to be divided in reality. The resulting plot, which we are interested in, would then be 850 m2 and would be a "pfeifenstiel" (flagpole) plot. Now the all-important question for us would be, what will the plot cost us besides the purchase price and ancillary costs until we can build on it?

The decisive questions for us are several: 1. who is/are the owner(s)/provider(s) of the 2000 sqm plot – the project manager? 2. if the plot is currently not yet divided, what should you currently buy: 2000 or 850 sqm? 3. what prevented another division than getting 850 sqm for you and even as a "pfeife" (flagpole) plot?

Lucky in misfortune: There is already a project for a duplex for the plot, because the financing of previous interested parties fell through. I spoke with the project manager, whose job is still not entirely clear to me. Because he has already designed a complete duplex including floor plan, costs, etc. for the plot, but he would not build the house in the end, but only take care of developing the plot and then hand it over to a builder!?

If I understand correctly, only the rear plot part is being discussed; it is not that one of the duplex buyers has dropped out, but the entire duplex is under debate due to non-use of the planning. What is supposed to be built on the front plot part, and does its planning affect you in any way?

Significant notary fees are incurred in the actual division of the property. At least in BY, the notary fees were based on the market values of both divided properties, resulting in a high four-figure amount due for a total of just 620 sqm of land that was divided in the middle.

Thank you very much for the many responses.

I think I still need to provide some crucial information. Currently, there is a single-family house on the 2,000 m2 plot. The plot is rectangular and has approximate dimensions of 75 x 25m. On the front side facing the street stands the single-family house. Behind it follows a very large garden. From this garden, the rear part plus the narrow strip for access shall be separated/sold. That will be 850 m2.

Now I am uncertain about the definition of "development" (Erschließung). Because it is not a plot somewhere in a field where infrastructure first has to be built up to the property boundary. Of course, the plot is developed in its current state. There is a house on it. But the newly created plot after subdivision is basically nothing but a meadow to begin with. Naturally, there is a public road leading up to the property boundary and somewhere there are also the corresponding supply lines. Nevertheless, these must be continued on the plot to the actual site of the house. And it is exactly about these costs. But this brings me to another question: Does one simply extend the supply lines of the already existing house to the new house, or would one bury new lines and pipes in the narrow strip and then connect them to the public network in the area of the street? (I assume the latter?)

According to the cost breakdown, the plot is developed. But a house must be connected to the utilities, which the prices in the incidental building costs refer to.

Incidental building costs occur with every house construction. They are almost independent of this specific project and dependent on the plot itself.
You can deduct them again in this calculation for now, but they will still be due.
Is construction electricity really that expensive? Then they have increased significantly - okay, a buffer is always good, it was eventually used.

Construction preparation: these are costs for the demolition of the existing structure.

Planning services: a mix of services and (hopefully) the corresponding fees.
You can organize everything yourself, but that’s what project managers are for. Some call themselves project leaders, general contractors; there are also brokers who offer such services. So what. Essentially a coach for home building.
For parking bans, by the way, the district is responsible, not the police.

Nothing will be demolished on the plot. Only vegetation must be removed and/or relocated, for example for the access path.
To my understanding, there are three main ways to build a house: I go to an architect, buy a prefab house, or go to a general contractor who builds the house. So far, I have assumed that regardless of which option I choose, the questions regarding access ways, supply lines, construction site access, etc., will be planned and calculated exactly by that party. Therefore, I do not understand the role of a project manager.

The decisive questions for us are several:
1. Who is/are the owner(s)/seller(s) of the 2000 sqm plot - the project manager?
2. If the plot is currently not yet divided, what should you currently buy: 2000 or 850 sqm?
3. What prevented a different subdivision than the 850 sqm for you, and also as a narrow strip (Pfeife)?

1. No, private individuals who live in an existing property on the 2,000 m2 plot. The motivation for the sale is probably the time-consuming and costly maintenance of the large plot.
2. The 850 m2, which is the rear half of the plot.
3. I can't answer this question. That’s how it is offered. I think the owners want this subdivision. A smaller plot would also be sufficient for us.

If I understand correctly, only the rear lot part is being discussed; the one who dropped out was not the semi-detached house seller, but one of the half-interested parties, and the entire semi-detached house is up for debate regarding the non-use of the planning. What is to be built on the front plot part, and does its planning affect you in any way?

Correct, the rear part is to be separated. Sort of, one of the half-interested parties dropped out. The remaining party does not want/cannot build a single-family house on the plot. Therefore, the entire planning for the duplex is up for debate, yes. Because we want to build a single-family house and use the entire plot for ourselves alone. There is an existing property on the front part where the owners of the plot live.

Sorry that my statements are sometimes not yet clear-cut. I still have to familiarize myself with all the terminology. We are still very much at the beginning.