Unlocking hidden value: key considerations to subdividing your property
Are you looking to boost the value of your property? Subdividing your residential property into multiple lots can be a smart investment strategy. Below we outline a nine key steps you'll need to keep in mind to make it happen.
Source: Hunting for George
Check the zoning: You'll want to make sure your property is zoned for multiple lots and see if there are any restrictions or requirements to follow.
Get some permits: Depending on where you live, you will likely need permits before you start building. These are there to make sure everything is safe and meets local regulations.
Hire a surveyor: You'll need someone to create accurate subdivision plans, which your local planning commission will review to make sure everything's legit.
Get connected: Make sure your new lots will have access to necessary utilities like water and sewerage. It's not the sexiest part of the process, but it's important!
Market research: Conduct a market analysis to ensure there's demand for the new lots and determine potential buyers or tenants.
Budget and financing: Make sure to have a solid financial plan in place before starting the subdivision process, including obtaining financing if necessary.
Contractor selection: Choose reputable and experienced contractors to ensure the quality and timeliness of the construction process.
Consider hiring a real estate agent: Once you’ve created the new lots, agents have the the knowledge and experience to market your property and negotiate the best deals for you. As always, remember to do you research!
Legal documents: Finally (where we come in), you'll need to create some legal documents, such as easements and covenants, to define the new lot boundaries and responsibilities of each owner. These will be recorded with the titles office.
Dividing your residential property into multiple lots can be a complex process, but with the right legal guidance, it can be a smart investment. Contact us today to learn more about how we can help you navigate this exciting opportunity.
