Building at Lake Chelan - Part 1
– Site Feasibility –
Deciding to purchase a homesite in the Lake Chelan valley is a big decision. Performing your due diligence brings peace of mind and reduces future surprises. Be sure to ask for a feasibility period in your offer. Once your offer is accepted, consider these next steps.
Waterfront home site uplake from Manson. Requires geo-tech, septic, and shoreline analysis.
Septic, Slope, and Water
First, assuming the homesite doesn’t have sewer, you will need to hire a septic professional to perform a percolation test. This will determine the type of septic system to install and expected capacity. $1,000 will typically cover the test and you will get answers to these questions:
Can the site support a drain field?
What type of drain field system will be required (and at what cost)?
How large of a home (as measured in bedrooms) will the system support?
Second, if the homesite is sloping as in the photo above, you will need to verify the soils will support a home. A geotechnical engineer will dig test pits on the site to better understand the soil composition. Plan to spend $5,000 for the tests and related report.
Third, if the homesite doesn’t have a water source, you will need to call a well driller. The driller will visit the site, typically at no cost, and offer an assessment of drilling options. Drillers have a high degree of success, but it isn't 100%. Be aware of the unknowns that drilling encompasses.
Rules and Regulations
In addition to septic, slope, and water, be sure to perform specific research on the property as it relates to the neighborhood and utilities.
Is there a Home Owners Association? If so, what are its monthly fees? Is there a design review process? Call the head of the design review board to better understand this process. The title report will show if there are any CC&Rs recorded against the property.
Are there easements affecting the property? These can be easements that burden the property or that benefit the property. Examples typically include easements for vehicle or pedestrian access. The title report will offer answers to these questions as well.
Related to easements, are there any shared-use agreements? These typically involve shared water supplies or driveways.
What are the utility hookup fees? If the homesite has access to sewer and water you will save on septic and well costs, but be prepared to pay $10,000 to $20,000 in hookup fees before receiving a building permit.
Also, is power on site or will you need to bring it to the site via buried conduit? Chelan County PUD can offer an assessment of availability and cost for $450.
Preliminary Home Design
Once you have an understanding of the homesite’s septic and slope characteristics, you are ready to talk to a designer or architect. Your goal is to create a set of preliminary plans (floor plan and elevations) that will allow a builder to offer a sound price estimate.
Time is of the essence in this process. Your goal is to create a rough first draft that is ‘close enough’ for feasibility purposes.
The price for preliminary plans will typically fall between $5,000 to $10,000. (Using an off-the-shelf design can offer great savings if you find one that meets both your requirements and those of the site.)
Builder Estimate & The Bottom Line
Once you have the geo-tech and septic reports and a set of preliminary designs, it is time to visit with a builder. Using the professionals’ reports and your preliminary design, the builder will be able to offer an initial budgeting estimate of the building costs. Add this estimate to the cost of the home site and other cost estimates (e.g. septic install, power install, etc.) to get your bottom line.
Do you like what you see? You will be quite financially invested in the process by this point. But if the numbers don’t add up or your gut is telling you no, make the tough call and walk away.
Odds and Ends
Sometimes a site will have utilities already installed or have specific waterfront considerations. In these cases, here are topics to consider:
Well purity test - As the name suggests, this test will report on the water quality in a well. It will also offer information on the pump and related piping.
Water rights - Domestic and irrigation water rights ‘run with the land’.Review the Seller’s Disclosure sheet to see if any rights exist. Water rights can be purchased for a single-family home on Lake Chelan for approximately $14,000.
Dock permit and shoreline stabilization - Parcels on Lake Chelan may allow for a dock. Additionally, the shoreline may need to be stabilized depending on the slope at the water’s edge. Private permitting companies specialize in helping buyers with these feasibility questions.
Interested in learning more? Please contact me for a list of contractors and consultants who perform all of the above work.
Also, see Building at Lake Chelan - Part II - Construction Loan Basics
