Is your home on land that you think is worth more than the home itself? Check out this guide to find out what builders buy lots in your area, what makes a builder’s lot, who do you approach to sell, and whether or not you should rezone your property before you sell.
Builders buy lots to redevelop into custom homes, townhomes, and sub developments
In some areas, the land homes are sitting on is worth more than the home itself. A good indicator is to look around the neighborhood and see how many of your neighbor’s homes have been rebuilt, substantially renovated, or combined with surrounding lots to build townhomes, or semi’s. If your neighborhood has a lot of redevelopment, and a lot of custom homes, townhomes, or semi’s, your land might be worth more than your home.
What makes a Builder's Lot
A freehold, detached home or vacant lot are usually the best candidate for a builder. Depending on the area, builder’s will either build a custom home, a couple of semi’s, townhomes, or even condos. It’s up to the buyer to find the zoning, and decide what to build on the lot.
Who do I approach if I want to sell?
Each builder operates in their own niche. Some builders focus on sub developments, and large scale projects, while others only build custom homes. The size of your lot, the area you live in, and the chance that your neighbors might sell as well, will dictate the buyer for your property. If you have a builder’s lot in Oakville or Burlington, the chances are you will sell to a custom home builder. If you have a builder’s lot North of Dundas, chances are you will sell to a townhome developer, like Great Gulf or Mattamy.
A well-connected real estate team can market your home through their sphere of influence, and through the multiple listing service, to find the right buyer and negotiate the best terms for you.
Should I Sever my property? or Rezone?
Severing and rezoning takes a considerable amount of time, and is quite a hassle, but it can pay off. Get advice before embarking on your own. Sometimes it’s easier and quicker to sell without making any changes, because the builder or developer has the best connections to sever and rezone lots. The builder has the time, resources and experience to get the zoning done fast.
What is the process like
Builders are constantly looking for new land to develop. They are also very flexible when it comes to the date you choose to move out. A builder will often give you whatever closing date suits you, because it takes them a considerable amount of time to have the plans for the next home approved. For a builder, it’s important to find their next project, while they are still working on their current project. Sometimes a builder will offer the sellers more money if the seller accepts some of the purchase price on closing, and the rest once the new home is built and sold.
How does a real estate agent help?
The right team can market your home to their sphere of influence, which includes exclusive relationships with builders, developers and some of the countries top architects. As I mentioned earlier, most builders have a niche, and a well-connected team knows which builders in your area are interested in your home. The right team can also help negotiate the best deal for you, whether you’re looking for a longer closing date, the most money, or the fastest sale.