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Price Points in Your Land Assembly by Geraldine Santiago

Price Points in Land Assemblies by Geraldine Santiago



In a land assembly, a good strategy to attract interest from developers is your price. If you have an aggressive price point to begin with, developers will pass on your property. When I show developers a potential site to acquire, they look at just how aggressive the pricing is. Sometimes they just walk away but other times they may tell me to let them know when (and if) their price goes down before they act on it. 


Remember, there may be planning limitations on your land assembly site that you may not be aware of, and price will definitely affect it.  In a recent article dated April 12, 2021 by Western Investor staff, the article mentions the price of plywood, "a single sheet of 4x8 now costs more than $65.  As of April 9, a basic SPF (spruce, pine, fir) two-by-four cost a record high of $1,132 per thousand board feet, according to the Ministry of Forests, Lands, Natural Resource Operations and Rural Development's weekly B.C. lumber price tracking."




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Broken Land Assembly: What You Should Know



Broken Land Assembly: What You Should Know by Geraldine Santiago, Realtor




There are 'perfect' land assemblies, and there are 'broken' land assemblies.  A perfect land assembly is an assembly that is an assembled by one lead Realtor and listed with all the owners in the assembly. This type of land assemblies will typically be marketed as a parcel to developers, and it is more sellable and marketable than one that is 'broken'.


A broken assembly is an assembly that has four or five different listing Realtors, in for example, a five lot assembly.  Sure, every home owner has the right to choose their own Realtor.  But from a developer's point of view, this is a 'broken land assembly' because it is much, much harder to deal with. Think of it, the developer will have to deal with five different Realtors, explain the contract and terms five different times, counter with five different Realtors, update five different Realtors with changes, addendums, notices, updates, and more!!! Simply put-- developers just don't have the time to deal with this type of broken assembly as it is very messy, disjointed, and they tend to walk away and go to another site. Developers would much rather have a neat assembly in a nice package with one lead Realtor to deal with.  


How to remedy this situation? The solution would be one is the lead Realtor and the other Realtor of your choice co-lists with that person. It doesn't happen often, but this would be a win-win situation for all. The homeowner can deal with the Realtor with whom they have already dealt with in the past, know and trust and the developer can work with the one lead Realtor who will coordinate with the others and developer.

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