What a six lot split in Hays County says about pricing interior lots too conservatively
Here is a case worth studying, because the surprise in it sits on the pricing side rather than the cost side. Six lot split on 4.2 acres in Hays County, Texas. Parcel acquired at $218k in January, engineering and platting at $34k, with a gravel apron and survey markers placed on each lot before listing. All in at $252k. The first three lots moved in 31 days at $58k, $61k and $58k. Lot 4 closed at $72k. The comparable driving the original model was a 2023 sale two miles north that closed at $57k, which set an assumed ceiling of about $72k for the project as a whole. The two back lots have worse sight lines and were priced at $54k each to move quickly. Total projected revenue at that pricing is $346k against the $252k all in cost. If the back two land at even $62k each, the project finishes near $375k. The open question is whether the interior lots were priced short or whether lot 4 simply found a buyer who wanted that specific corner, and usually only the last closings settle it. The broader point is the one most operators miss. The engineering invoice gets watched as the line that kills margin, and conservative pricing on interior lots takes more out of a project than platting ever does.
