Another benefit of subdividing for homeowners who would like to liquidate some of their real estate without having to sell the farm (literally), is that they may be able to both cash in on a portion of vacant land and stay put on the rest. Holding onto some of their land can give that property time to increase in value as the surrounding subdivided land becomes developed.
For most commercial properties, the best way to do this is by ordering a “Phase I Environmental Report” (many banks will automatically require this because it affects their collateral). This report will identify if there are any “Recognized Environmental Concerns” (RECs) on the property that you need to worry about. If you neglect to do any environmental due diligence, the liability for any existing environmental contamination on the property could ultimately fall on your shoulders – making it very difficult and expensive to sell the property in the future.
I didn’t expect the transaction to go as easily as it did. But, to my surprise, the whole process went exactly as was promised. The representatives I spoke to were professional, and did everything they said they would to the tee. Now I don’t have to think about or pay taxes for a piece of property I don’t have any use for. If I had more land to sell to them, I would most certainly use Easy Land Sell again.
Your first point of contact will be your local council, They can tell you whether a precinct structure plan has been drawn up for the area, and advise of the process and timeframe of any existing masterplan. “It’s important to establish a rapport with local government,” Coutts advises. “They will be either your blocker or saviour. There’s no use having an adversarial relationship.”
Calculate all of the costs to bring the land up to the condition you would like. What is it going to cost you to build out the property? That is the cost of acquiring the land, the entitlement, the cost of construction of the land, the cost of marketing to people to build it up if it is a retail space, plus the cost it takes to secure any money (i.e., loans)? You also have to factor in a reserve for costs associated with things such as air conditioners, wall coverings, and so on, says Veissi. "Those things have a shelf life, so, they are going to take x amount of time before they need to be replaced."
Hey Seth, as always great article! I found the free online marketing ideas (like posting on Craigslist) especially creative and helpful. Thanks so much for helping me through the stressful process of selling my home. Since you asked what other creative tips I’ve found–I read this eBook in my research and found it so helpful that I thought I’d post it here in the chance that it could help someone else. Here it is: https://www.homelight.com/sell-your-house-online-ebook
You always have the option of selling your land through a professional which is your real estate agent. There are some significant benefits to doing this when you are looking for a quick sale. These experts have the training and expertise for selling property. They also have a large database of potential buyers. Then they have ready access to many more forms of marketing that you as a private seller may not have. This includes selling through the internet. Most have high profile sites set up that draws traffic from interested buyers. If you are attempting to sell your property online you probably don’t have this same outreach.
Fortunately the lot is over 500 feet deep. The price reflects the known fact that the front erodes due to natural occurrence. I really love this lot but am scared that it might be too many loopholes and fees to deal with DEQ regulation because of the topography. Do you recommend walking away from this lot? It’s only $25000 and is less than 1/4 the cost of almost any other lot half its size anywhere else in the state.
Seek a veteran agent who is experienced in land valuation and who understands the implications of location, zoning regulations and parcel size. These are more prevalent at larger brokerage houses. You’ll want the agent to determine what the other neighborhood homes that have been scooped up by developers are fetching and what type of development is planned for your tract. These little nuggets will help you establish a price baseline.
Instruct sto ask any potential developer/builder buyers to render written offers. Unless one of the early ones floats your boat, I suggest you respond that you aren’t interested in selling for that sum at this time. Refrain from making a counteroffer if you can. Just let the developer(s) keep coming back with increasingly larger offers. If and when you accept, don’t be afraid to ask for a moving allowance as well.
Investors look for future potential. A priority would be to look at a municipal developmeant plan to see if the property is within a plan area. Personally, I would never invest in land that is not already under a municipal area structure plan. If you want to take a risk, you could look for land that was in the obvious path of development and be prepared to hold the land for a very long period of time.