As a realtor, I keep a close watch not only on the MLS, like all other realtors, but I also keep a hawk’s eye on other platforms such as AirBnb, Kijiji and Facebook Marketplace.
If there’s one recurring theme I can speak to in spades on Marketplace and Kijiji, it’s the desire for vacant land.
>>> Owen Sound is rapidly running out of quality vacant land. <<<
With a combination of development, environmental restrictions and land that simply cannot be refined, Grey-Bruce as a whole is facing a greater land shortage than most realize.
That’s where you come in – there’s one great way to help Owen Sound’s land shortage and that’s by severing part of your lot and selling it off to someone who can build on it.
There are several potential benefits to severing parcels of land and selling them individually.
Here are some of the main advantages:
Increased profitability: By dividing a large parcel of land into smaller lots, you can potentially increase its overall value.
Smaller lots are often more marketable and may appeal to a wider range of buyers, such as individuals looking to build homes or developers interested in smaller-scale projects.
Market demand: Depending on the location and market conditions, there may be a higher demand for smaller parcels of land.
This could be due to factors such as limited availability of large tracts, population growth in specific areas, or market preferences for smaller properties. By catering to this demand, you can tap into a potentially lucrative market.
Flexible selling options: Selling smaller parcels of land provides you with more flexibility in terms of selling options.
You can choose to sell the parcels individually, which allows you to potentially maximize profits, or you can sell them as a package to a single buyer.
This flexibility enables you to adapt your sales strategy to the market conditions and specific buyer preferences.
Risk diversification: By dividing a larger piece of land into multiple smaller parcels, you spread the risk across different sales.
If one parcel takes longer to sell or encounters challenges, the overall impact on your finances is minimized. This risk diversification can provide a buffer against potential market fluctuations or other unforeseen circumstances.
Increased liquidity: Smaller parcels of land generally have higher liquidity compared to larger tracts. They can be more easily bought and sold due to their lower price points and wider market appeal.
This liquidity can be advantageous if you need to access funds quickly or if you want to capitalize on emerging investment opportunities.
Tax benefits: You may be eligible for tax breaks or exemptions based on the size of the individual parcels or the classification of the land after subdivision.
It is important to consult with a tax professional to understand the specific tax implications in your jurisdiction.
It’s worth noting that the benefits of severing and selling land parcels can vary depending on the location, market conditions, and individual circumstances. It’s always advisable to conduct thorough research, seek professional advice, and consider the specific factors relevant to your situation before making any decisions.
If you have any questions about severing land, I’m here to help.
Get The Free Book Today
The Darker Side of Real Estate is a humorous look at sellers, buyers, realtors and investors. Skip the cost of the print version by downloading the PDF version FREE.