In Escrow – Kohala Ranch Lot 100
I just put into escrow for one of my buyer clients Kohala Ranch Lot 100. This 3-acre lot in The Heathers section of Kohala Ranch offers an existing curb cut and driveway grading onto a level building pad. The buyer and I are both in the development and building business and recognized quickly the advantages and potential reduced costs and time this lot had to offer relative to site work. It’s one thing to buy a lot or acreage. It’s a whole other set of expenses and engineering to build a house on the land, as the total cost of land plus civil engineering and grading expenses can be prohibitive.
In this case, the existing grading allows a short driveway and an easily buildable, flat, and large house site. The utilities also have a short run from the roadway, which also reduces costs for the power, cable, and water line. Wastewater for all Kohala Ranch lots is an on-site septic system, so the engineering for this system will need further study.
Sales of land and developed lots are now starting to pick up as homes and condos, especially in the resorts, have appreciated in the last four months. I always say, “money follows the value,” and land usually starts to appreciate and sell in the final leg of a real estate cycle. The cause for sales and price escalation is generally that land plus building costs are less than purchasing an existing home offering a better “value.”
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