You may have bought some land as an investment or have a property big enough to subdivide with some land on the side.
While there isn’t a crystal ball to tell you the best time to sell, when the decision has been made to let the block go, there are some actions to take which can help to move the block faster and maximise the return on your property.
Here are some pointers to point you in the right direction.
Is the property suitable for subdivision?
If the land is large enough for a subdivision, there is an opportunity to subdivide and sell, selling with approvals for subdivision in place or even having the potential to subdivide will add value to your property.
This could be something worth researching as each council will have its own rules and regulations around sizes, zoning, purpose and other requirements around the land.
In some cases even large blocks might not be eligible for subdivision.
A small investment of time here potentially sees a better return as you could attract the attention of developers or other investors who see the added value.
However, it is also important to note that before going ahead with a subdivision, there are costs involved throughout the process so it is advisable to run numbers to make sure going ahead with a subdivision is either profitable or worth the financial investment.
Utilities
Is the vacant block connected to basic utilities?
If you have the capacity to have electricity, gas and water connected, it not only adds value to the vacant block but also adds appeal to the potential buyer with the property ready with infrastructure to have a builder start work with one less hurdle to jump through.
It is also important to note that in the scenario of a subdivision, an approval of subdivision may come with conditions such as underground power, connecting power or even removing or relocating an existing utility structure.
It would be useful to have some knowledge about utilities including electricity, gas, water, sewerage, internet access and telephone.
There are government authorities which you can contact to find out more.
It may also be good to understand the stance on underground cables and pipes to budget any additional potential expenses if you are planning on connecting before sale.
Town planning
Any buyer looking to buy a vacant block of land will carry out their own due diligence.
They will research for any restrictions on the title on things like easements and covenants as well as research whether local planning may place restrictions or allow them to build what they want to build.
For example, there may be height restrictions for buildings or boundaries which are enforced.
If the land is mainly surrounded by other vacant lots it also pays to research future development plans for the area.
A potential buyer who wants to build their home may lose interest if they find out that the surrounding areas are to be used for factories or are not zoned residential.
Having this knowledge can be used to your advantage when preparing for potential objections and will be especially useful when negotiating with a buyer that fits the profile.
Presentation and features
A vacant block of land isn’t just a vacant block of land. Like anything that hits an open market, the better presented the property, the more appeal it has to the buyer.
Vacant blocks over time tend to develop a collection of unwanted growth and items that have either simply appeared or one may have been stored intentionally.
A good clean-up will not only appeal to the buyer visually but will help them to conceptualise their plans.
Things that can be improved for presentation include clearing unwanted growth of shrubs and weeds, trimming and pruning trees, removing some or all trees and removing rubbish and junk.
Some of these projects can be handled on your own but it can also easy get out of control.
If you do not have the tools there is the option of hiring equipment.
If you are time poor or do not have the skills and knowledge for the tasks, you can always employ the services of a professional contractor to clear the land or remove some or all of the trees and items which can then be recycled.
– BY REALESTATEVIEW.COM.AU