Why You Should Consider Subdividing Your Land for Sale

Why You Should Consider Subdividing Your Land for Sale

Dudley Resources

So you have some land you’re wanting to sell and you’re looking to get the most money possible. One way you can maximize your property’s value is by subdividing the land into multiple lots.

A traditional approach to selling land may consist of getting some aerial photos, printing the tax card, posting it on the MLS and waiting. While this traditional method works, it can take a long time to find the right buyer who wants the same acreage you have. However, even then, they may not want to pay the price you are asking.

In most cases, traditional listings are a top-down approach to selling. This means a price is set and the negotiations take the price down from there rather than increasing the price. Insert, the auction method. The auction method makes it a goal to find the person who values the item (in this case, a property) the most—not just someone who is willing to pay a listed price (or bargain for less) as is often the case in traditional real estate.

So, knowing this, let us jump into why selling your land as a multiple parcel property can help you maximize even more on your investment.

Increase marketability

By subdividing the property into manageable bites, more of the public will not only be interested in your property, but more people will qualify to purchase.

Sometimes selling a large piece of land is like giving someone a whole pie, but they must eat the whole thing in one sitting. Not everyone can do this. In fact, only a small fraction of people could do this. But by providing an option to buyers to eat one or more slices in one sitting, more people qualify. In this instance, you want to share your pie with as many people as possible.

Make more money

With subdivision, the parts truly can be more valuable than the whole. By dividing a parcel of land into smaller plots, you can sell the land to multiple buyers. Depending on the situation and local market conditions, you often can increase the total value of a parcel of land by subdividing it into smaller pieces.

Subdivision can be a great way to maximize your return on your land. However, remember results will also be determined by outside factors, such as the market and individual situation. Be sure to consult with your local real estate auction professional to help determine the best path for you.


From the NAA Website


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