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Selling vacant land, it’s just like selling a house …isn’t it?

Not really, there’s a great deal of devil in the detail when it comes to subdividing your land in an established suburb and introducing it successfully to the market.

The understanding required for the agency you select to sell the land that you have subdivided or the things that need to be considered in order to subdivide, is a very specialised skillset.

Below are just some examples of the many topics we get asked about regularly.

Contribution to what open space?

The local shire may want 10% or the property value to contribute to public open space when you do a multiple site subdivision. You must know this in advance as that can be a huge amount of money.

What are the R codes?

My neighbour subdivided, does that mean I can? Not always, two properties side by side can have different subdivision potential. How can you determine what your options are?  TWP can provide an individual assessment.

I’ll subdivide myself, isn’t it easy?

You can if you have the experience to do so. I have had client come to me and say they have been quoted by a surveyor to subdivide the property. The surveyor had quoted his costs, but not the cost of the entire subdivision up to and including all civil works and issue of new titles for settlement. The quote they were given was ¼ of the actual cost.

When do I get the money from the sale of my block?

You can only get the money from your new lot, when title issue. Usually about 6-7 months from starting provided you are able to achieve the required pre-sale of the lot.

Can I sell the land before issue of title?

Yes, you can, TWP can show you how.

How much does it cost to subdivide start to finish?

Each property is different, TWP can provide an individual quote from the day we start, to the day you get paid.

What about site works?

Items such as the potential site works a buyer will be exposed to must be handled by the selling agent accurately, simply referring the purchaser’s questions to a building rep creates the potential for a myriad of mistakes which ultimately can cost you the potential sale of the land.

Selling lands easy, do I even need to turn up?

Selling a relatively plain looking patch of dirt can have real challenges. There’s a large percentage of the general public who literally can’t envisage the end product of a home when looking at a vacant lot.

There’ also a general distrust of builders and the accuracy of the quotes which must be addressed in a professional way.

TWP has an in depth understanding of all potential costs of building, a thorough understanding of both single- and two-story options and costs associated with the construction of either.

TWP has established relationships with builders, who can be trusted, it is also a crucial part of the process as a random builder can really upset the process and result in a lost sale.

How can I secure vacant land, they seem to sell so quickly?

They sure do, usually there will be one or two blocks of land available in sought after suburbs. How do you secure the land, without rushing your building design?

How do you get your design done, without someone nipping in and buying your block?

TWP can show you how.

 


 

Tradewinds Property has over 20 years of building and Realestate experience and in particular the attention to detail required when it comes to integrating the appropriate new home design for the property taking into consideration all of the unique characteristics of the land.  We are also experienced in all cost’s timeframe, and potential pitfalls in relation to subdividing.

TWP is here to guide you.