The land is certainly a limited resource; they just aren’t making much more of it. With the constant demand for vacant land historically the value has increased steadily over time, making land generally a wise investment. Like when a house flipper improves a house for a quick profit, land can be sub-divided into two or many pieces of land (lots) to increase profitability. By sub-dividing it, buyers can purchase only a portion of the land at a more affordable price. Therefore, the size of your potential buyer pool rises, increasing competition. If located where land is scarce, such as near more developed areas an area such as downtown, the location of your property can further add jumps in your profit when bidding wars occur.
Another benefit of subdividing land is retaining a portion of it for your use and selling the rest for a profit. Read on to discover what investors should know about sub-dividing land.
Land Sub-Dividing Process
Sub-dividing land is a process investors should understand well. The first step is to ensure there are no restrictions on your land that could restrict your plans for the property by working with a reliable title company. They can alert you to any covenants or deed restrictions on affect the land. Also, be sure to evaluate the location and existing demand for the sub-divided land, so your marketing efforts don’t go to waste. You should also investigate the utility services available for the subdivided land. Finally, you can search online for information and contact the planning department for your city; they will explain the sub-dividing process for your property and bring any zoning restrictions to your attention. Developing the raw land that you sub-divide will certainly escalate the value of your property. However, unless you have land development experience, it is most beneficial to work with experienced land pros to help you avoid costly mistakes. To target my favorite types of property look for those selling inherited Ft Worth house or selling inherited Ft Worth property or selling inherited Ft Worth real estate.
Costs depend on many factors when it comes to sub-divining land. The size and shape of the land you’re sub-dividing, the location, and the planned land use. As an example, adding utility access greatly increases costs and so does access to infrastructure. Also, there will be some legal fees and city and county fees for inspections and permits. If the property lines aren’t known then the property must be surveyed. There are expenses associated with the survey from a certified surveyor. If city sewer isn’t available then a perc test will check the soil, permeability, and water table to determine if the land is suitable for building and where the best location for the building is. And as well as engineering for any drain fields. For a reliable estimate, contact a land-developing company in your area to help you assess the costs you are likely to face with your project. And you’ll need to pay fees and apply for approval of your plans to sub-divide the land. You will also be responsible for costs to the county, such as hearing and recording, review, and tax-map-update fees. Then there are the costs associated with clearing and cleaning off the land.
A direct buyer can work with you to buy your land, saving you both time and money. If you are considering selling your land and would rather avoid all of the headaches and expenses listed above, a direct sale to mat be your solution. They are happy to discuss the unique qualities of your land and answer any questions or concerns you may have about the process, with absolutely no obligation. Be sure that they compare what you’re likely to earn with a traditional listing, outlining all the costs involved, against our offer, which you will agree is more than fair. In addition they will even pay the closing costs. Because they will pay cash, they will schedule your guaranteed closing within days. If you’re considering sub-dividing land, one of the fastest ways to sell is directly to a professional buyer.