Is your home on land that you think is worth more than the home itself? Or, do you have a vacant lot that you’re looking to sell? This guide is for you.
Selling land is very different compared to selling a home. Without a liveable home, the buyer pool is significantly reduced. It also affects our marketing. When it comes to listing and selling land, there is no living room to stage with beautiful furniture. The buyer needs to see the value of the land. Buyers for vacant properties are either long-term investors, builders or someone building a custom home. Finding the right agent is especially important here. In neighbourhoods like Old Oakville, Bronte, Kerr Village, Ford, and many neighbourhoods in South Burlington, like Aldershot, the lot might be large enough to severe. While large lots are valuable, they are sometimes worth more when severed. A sale last year in Olde Oakville saw 1 lot severed into 3 separate parcels. The result was a significantly higher pay sales price for the owners.
How To Spot A Good Candidate To Sell For Land Value
Is your land worth more than your home? A good indicator is to look at homes around your neighbourhood. How many of your neighbour’s homes have been rebuilt, or substantially renovated? If you live on a street where many of the neighbouring homes have been knocked down and rebuilt, it could mean your property values are quite significant.
However, just because many homes are being renovated and rebuilt, doesn’t mean the buyer is necessarily looking to build immediately. There is a growing trend among investors to buy small homes on large lots, and to rent out the home for an extended period of time. This is a type of land banking. There are many investors looking to buy a smaller home on a large plot of land since the GTA has relatively little buildable land.
Who Do I Approach If I Want To Sell?
An experienced realtor is the best person to help you capitalize on the sale of your investment. A local realtor knows the best use of your land, and knows who is willing to pay top dollar. If you’re in a neighbourhood where builders are often knocking on your door asking whether or not you want to sell, it’s still a good idea to get a market evaluation from a realtor. A realtor will help you figure out whether taking the builder’s offer is the best action for you.
A skilled realtor will have the expertise to market your home to the most profitable buyer.
Should I Sever My Property? Or Rezone? Or Get A New Survey?
Since we’re selling the property for land value, we need to maximize the value of that land by finding its best use. That means planning a survey, speaking to the land registry office about zoning, and potentially including an architect or design firm to write up a proposal for potential builds. Knowing exactly what the lot can be used for will gives you an idea of who the buyer is, and how much the property is worth.
What is the process like
It takes time. Selling lots is an art. You need to hire an agent that can get the word out on social media, well-optimized websites, through their social sphere, through their top-rated brokerage, and through traditional MLS.
The buyers of vacant lots are usually either builders, custom home buyers or investors. Knowing who your buyer is, is very important. Custom home buyers are building their dream home, so they are extremely critical of the lot they purchase. Do not pull down trees or existing shrubbery, in fact, it could help to do some lot maintenance to create the most beautiful, walkable lot possible.
Once you’ve found the right buyer, the offer will differ compared to traditional sales. The conditional period in a sale like this is also a bit longer compared to a normal resale home.
How does a real estate agent help?
The right team can help figure out the best use for your property, market it to the most high-paying buyers, and negotiate the best deal for you. Finding the right niche to market your property to, and then reaching that niche, is no simple task. Only a well-connected, local realtor can get you top dollar when it comes to selling your property for land value.
If you’re thinking of selling, contact us and ask us about the difference we can bring to your sale.