I just signed my first purchase agreement for a small 1.0 acre lot in Wayne County, NC for $4k that looks like it will be a good deal. Comps are anywhere from $20k to $30k. The lot does not have any sewer, but has County water and electric. I have two questions:
should I invest in doing a septic site evaluation and determination by the Environmental Health Department? Talking to the County, the soils in the area are positive for site drainage so they should perc and there are houses with septic on the adjacent lots. The cost for the County to evaluate this is ~$350. Is it worth it for the confirmation, and possibly will increase the propertyâs re-sell value? If the site doesnât perc, is this detrimental for the lot? Should I get this done before purchasing the lot?
Should I invest in having the County do a preliminary plot plan approval for the site? This is called a âdevelopment permitâ in Wayne County and requires an engineer/surveyor develop a plot plan (costs ~$350 based on my discussions with a local engineer/surveyor) to locate the building, utilities, septic system etc⌠The plan review fee is $50, and a septic determination also has to be done that is $350 (mentioned above). All-in this would be less than $1k. Is this worth it, and does it provide value to a potential buyer? Should I get this done before purchasing the lot?
Definitely get the perc test. Do it during the due diligence period so if it doesnât perc you donât close on the lot. Proving it will perc helps you sell it. Same with the development permit. With those two things you can advertise the property as âshovel readyâ or whatever they call it there.
I think itâs worth it. Thatâs not a terribly high cost for the assurance it will give you, and it sounds like it will probably work out fine.
Iâm not sure if it will make the property worth more. Maybe, maybe not, but it will most likely make it sell faster because youâre answering one big question most buyers will have before they can make a buying decision.
Does this determine where the house would have to go? If so, you might not want to paint yourself too much into a corner, say if your future buyers wants to position the house in a different way.
I think itâs similar to the perc test issue in that, the more questions you can get answered, the easier it will be for your future buyer to say âyesâ to buying it. It might even increase the value for the right buyer.