Q: We’ve been looking for property to build a house on and can’t seem to figure out what the expenses will be.

Is there a sort of “ballpark” number that we can use?
A: It’s very difficult to estimate development costs since each parcel of land has its own set of issues. I can give you some estimates that I use which are not exact, but might give you some idea.
First, you’ll want to find out if there is a well or water share that comes with the property. If not, you will be looking at about $40 per foot to drill a well, plus the cost of setting up the pressure tanks, well house, and any filter system you might want. You won’t know until you start how deep the well driller will have to go. A water share, if it is available, will cost about $10,000 in most systems on the Island.
You’ll also want to do a septic design. This is critical to finding out if the property is buildable and what type of septic system it will require. Figure at least $1,200 for the design. You will also have to do a critical areas review, which will cost several hundred dollars. If there are significant wetlands, you will probably need a wetland biologist and engineering firm to do a study which will add about $2,000. Once you begin developing the land, the cost of installing the septic system will run about $8,000 to $20,000 depending on the type of system required.
Once you begin development you will be paying approximately $3,000 to $15,000 to bring in utilities, depending on the distance from the utility main; $2,000 to $5,000 for clearing and grading; and at least another $2,000 for a simple gravel driveway.
I think it’s a safe bet to assume about $50,000 for development costs on top of the cost of the land before you add in the cost of construction. If it works out to less, good for you.