Site Work
- 3 components to SMCH transaction price:
- Cost of land
- Cost of new home
- Cost of site work
- Site work consists of all the activities that need to occur in order to build your home
- Examples of site work are demolition of the existing home, site engineering, driveways, landscaping, tree removal, dirt export, permits, fire sprinklers, street cleaning, and other miscellaneous items.
- Buyers who are want to build on a vacant lot need to budget extra money for site costs compared to buyers who want to tear down and build new
- One reason that site work is budgeted on a separate line item is because site costs vary from property to property and jurisdiction to jurisdiction
- Specific examples of site costs:
- The extent and therefore cost of dirt export is largely determined by the size of the home being built. Larger homes generate more dirt during excavation.
- Rain gardens are required by some jurisdictions and not by others. This is a jurisdictionally specific site cost.
John Jorgenson of Long & Foster is the exclusive agent for Stanley Martin Custom Homes.