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If you are the owner of a big area of land, you may find yourself subdividing it into smaller blocks. There are a few reasons why considering doing this could be of benefit to you as a seller. Here, we will outline 3 of the main reasons why selling a block of land after subdividing it could be beneficial to you as a seller.
Having a huge area of land, means that you, the landowner, are going to be responsible for the upkeep of the land. If you do not have the means to do the upkeep yourself, you will need to hire an outside source to take care of it for you. This is something that can cost a good bit of money, depending on the area, and what is required to keep it maintained. Creating a subdivision, and then selling those blocks of land, will take the responsibility of upkeep off of your plate.
Depending on the situation and the local market at the time, you can actually increase the total value of your land by dividing it into smaller lots. For example, if an investor buys part of your land, they may decide to build a subdivision for homes in a neighborhood, or even a commercial area. By hanging on to some of the surrounding area, you may see an increase in the value, depending on how the buyer develops the land. Chances are, if someone wants to buy a plot of the land, they have some sort of intention of putting it to use. Being patient and waiting to see how it is developed before deciding what to do with the rest of the land, can prove to be quite profitable for you.
There are many more buyers that are interested in buying smaller lots versus buying a full area. Therefore, by subdividing your land, you will find that more people are interested in buying and you will be able to sell quicker than if you had the entire area as a whole on the market.
Before you consider subdividing your land, you need to check into the laws and restrictions in the area to make sure it is something you can legally do. You do not want to invest money into dividing to only find later that it cannot be done and sold as so. The area restrictions are fairly easy to search and understand.
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