Land Purchase and Development Feasibility Report

What a good one includes

• A detailed breakdown of current zoning classifications, permitted uses, setback requirements, and maximum building heights or lot coverage.
• An evaluation of the proximity, capacity, and connection costs for essential utilities like water, sewer, electricity, natural gas, and internet.
• Identification of wetlands, flood zones, steep slopes, protected habitats, or soil issues that could restrict building or inflate excavation costs.
• Verification of legal road access, easement details, traffic impact potential, and driveway or street connection requirements.
• A conceptual layout or calculation demonstrating the maximum realistic footprint, number of units, or subdivision potential of the parcel.
• A high-level estimate of soft and hard development costs offset against projected market value to calculate your potential return on investment.

Common mistakes to avoid

• Assuming municipal utilities are readily available nearby without verifying the actual distance, hookup fees, or capacity limitations of the existing grid.
• Relying solely on the seller's representations or outdated listings regarding zoning and subdivision potential instead of verifying current municipal codes.
• Ignoring easements, covenants, or deed restrictions that can severely limit where you can build on the property regardless of favorable zoning.
• Failing to account for grading, stormwater management, and soil stabilization costs, which can easily derail a project's budget before the foundation is poured.

Frequently asked questions