In the world of real estate, subdividing occurs when a larger parcel of land is divided, and a separate legal title is established for each of the new smaller sections. Subdividing land into multiple parcels is a regular practice with many benefits, including providing the landowner with increased profits and flexibility. While buying or selling a large parcel of land, it’s an innovative idea to consider whether or not subdividing the land can help you maximize your ROI.
The parts could be more valuable than the whole, meaning that you can often increase the profitability of the land by subdividing it into lots then selling it to multiple buyers.
If you are evaluating a large parcel of property, it may make sense to subdivide the land gives you the option to monetize more of the total area, rather than having “dead space.” Holding onto some of your land and selling off part of your property allows you to preserve property that can be sold at a later time as it increases in value while other portions get redeveloped for immediate benefit.
Larger parcels of land can be more difficult to sell than smaller ones – and may mean that you would have to sell multiple smaller lots at a lower price point. We can help you focus on your local market’s needs NOW and later. Typically, a strong area will benefit from the growth of small businesses and associated-residential neighborhoods. We can help you analyze the best curse and timing to maximize both the initial redevelopment and any subdivided land’s value.
We can do a complete feasibility study. If you are handling a single property, it’s one thing, but getting the overall feel for dividing the property requires the type of local land and development expertise that we can provide by conducting expert due diligence to identify risks and the highest and best use of the property.
Subdividing may require additional infrastructure. Consider a large suburban site that you would like to subdivide and then develop for mixed use. In some areas, larger lots can be serviced by their own well and septic system, but subdivision into smaller may require new municipal water and sewer service. Considerations like access to city septic systems, deed restrictions, and existing Land Use/Zoning Conditions and Restrictions (must be taken into account before beginning the subdivision process. That’s where we can save time and money.
Subdivision still requires that you follow the rules. When subdividing a parcel of land, you should understand the local zoning requirements, from flood risk evaluation and infrastructure regulations to laws about building density, infrastructure needs – roads and utilities.
Overall, subdividing a parcel of land can increase the total value of the land and provide the landowner with flexibility to keep their home on a smaller lot while obtaining some income from selling the extra lots. Subdividing land can also boost the marketability of your land as residential real estate, especially as the Frederick area, grows.
However, we advise clients that they should us to conduct feasibility studies and local zoning laws before moving forward.