Key Lot Premium in Florida Real Estate
A key lot premium reflects the additional value or cost of a key lot due to its larger size and unique characteristics. In Florida subdivisions, premiums are balanced against the costs of additional setback compliance, fencing, and privacy landscaping.
Premium Factors
- Total lot square footage vs. standard lots
- Location within subdivision (cul-de-sac, corner)
- Additional construction costs from restrictions
- Required fencing and landscaping costs
- Comparable sales data (key lots vs. standard)
New Construction
- Builder sets premium as separate line item
- Added to base home price
- Included in total purchase price on closing disclosure
Resale
- Premium embedded in negotiated sale price
- Appraiser adjusts for lot size (positive) and restrictions (negative)
Related Terms
Barnes Walker Real Estate
Barnes Walker’s attorneys review key lot purchase agreements and premium negotiations for Florida buyers and builders. Request a legal inquiry for assistance.
Reviewed by the attorneys at Barnes Walker, Goethe, Shea & Robinson, PLLC