9 Reasons Why Land Assembly Makes More Cents and Dollars

by Realtor, Geraldine Santiago

Land assembly is a growing trend in and around metro Vancouver and knowing what developers are looking for might give you an edge as a land assembly collective. Here’s where land assembly makes sense:

1. Tear down -   Your house, or the improvements on your property have little or almost no value to it.  In essence, it is a ‘tear down’. Even if you spend money to do a renovation such as fixing a bathroom or kitchen, it is better off selling the land for its value than to do a small renovation.  Selling your home as a land assembly will most likely get you more money.

2. Finances -   You don’t have the money or the energy to attempt to upgrade, renovate or fix your property.  You are already stretched too much financially (and perhaps emotionally), and fixing your property to sell will be even more strenuous on your finances. You don’t have the funds, time or energy to fix the roof, heating and plumbing systems which are all in desperate need of replacing, you have foundation problems and the list goes on and on. By selling as a land assembly, you won't have to do anything to your home-- you don't have to declutter, repaint, repair or stage your home. You sell your property, "as is, where is". There are no open houses to the public or showings to disrupt your daily life. Developers will be looking at your land values and pay even more, despite your property's condition.

3. Irregular sized lot - If you have a property that is either too narrow, too small or you have an irregular shaped lot that is difficult to build on, selling your land assembly can give you a higher property valuation.

4. One storey bungalow -  If your house is a small, one storey bungalow and in your neighbourhood properties are being built with two or three storey homes, your property is not utilizing its best and highest use (HBU). Buildable air space will definitely attract builders.  If it is a ‘stand alone’ sale, however, where you are not selling with your neighbours, you will not get as much money as you would if you sold with your neighbours on the block.

5. Lot size - In land assembly, your lot size is a tremendous factor. If you have a huge lot, a double lot size for example, selling your home as a land assembly with your neighbours can truly give you an edge in getting a higher value.

6. Commercial district - If your next door neighbour or a property on your block is designated CD commercial zoned, and you are in a residential zone, you should sell your home as a land assembly.  Having a CD commercial zoned property means that potentially a builder can have a mixed use site with both commercial and residential properties. For the land assembly, having a CD zoned property will more likely enhance the value of the land assembly to the developer.

7. Busy or noisy street - A typical home buyer stays away from purchasing on a main road because of traffic and noise.  If your property is on a main road, as a land assembly collective, it has a positive value because of its access. Selling your home as a land assembly becomes more attractive to developers if you have a property on a main road with access to utilities and services. In short, selling your home as a land assembly is prime if you own a property on a main road, and you will command more money by selling your home as a land assembly.

8. Vacant lot - If you own a lot which is vacant, and unused with no plans for developing or building, selling your vacant lot as a land assembly collective could command a higher price than by selling your vacant land on its own.  This is exactly what developers are looking for and more so if your unused property, which is not maximizing or utilizing its best and highest use, is sold together as a collective in land assembly.

9. Sloped Land - If your property is on a slope and you are not utilizing or maximizing its highest and best use, selling to a developer as a land assembly might give you a better value for your land because of your land’s potential to build more units on your property.

Learn the best practices for taking advantage of land assembly. We are presenting a seminar on September 8, 2018 at the RE/MAX Crest office from 11-1pm with industry experts who will enlighten you about the process, cost, timelines, how and if you qualify and more!  To pre-register, go towww.landassembly.me. Don't miss this opportunity as we only offer this seminar once a year!

Space is limited, please pre-register.

This is not a seminar for Realtors.

Contact: Text or Call  Geraldine Santiago at (604) 764-6873

Email: geraldinesantiago1@remax.net