Vancouver Land Assembly
What is Land Assembly?
Land Assembly is when several properties that are adjacent to each other are being sold together to developers for future redevelopment. If you are curious about the process or have been approached to sell as part of a land assembly, this land assembly blog post is for you.
Begin with the right Evaluation
So, when it comes to the biggest question: how much is my home worth under the Official Development Plan? Your property is worth more when sold under a land assembly togehter with the neighboring properties than selling on your own. This is because the bigger lot with the right zoning can be redeveloped into multifamily dwellings. Knowing what the right price to sell for as part of a land assembly can be challenging. There are a variety of ways to figure out the right price, but the best way is to work with a realtor who has experience and training in land assembly. When you are looking for potential realtors, make sure you are asking them questions like: Have you done this before? What’s your land assembly history? What’s your understanding of contracts and contract law? What developers do you work with? Like any real estate deal, it is best to work with a knowledgeable agent that has your best interests in mind.
Zoning of your land
Vancouver has a variety of zoning for different spaces and land size - some areas are only zoned for single family homes, while others can have townhouses, low rize, mid rize and high rise. When it comes to the zoning and what the developer can build on your land will have a major impact on what your land is worth. Knowing the zoning for your home can make a huge difference in what a developer might offer you for your land.
Raise your Concerns
When it comes to selling your home for land assembly versus a residential sale, will it matter that you just got some renovations done to your house? When it comes down to it, it is best to look at the money you spent on your renovation versus the money you will make through land assembly (you are more than likely going to make that money back on land assembly rather than selling the home as an individual unit).
In certain communities with a density allowance, a 10,000 sq.-ft. house could all of a sudden be turned into 25,000 sq. ft. of new townhomes, explains Business in Vancouver (BIV), which makes a tidy parcel of properties quite attractive to developers. A row of seven bungalows West 54th Avenue went on the market with a combined asking price of $28.1 million (from $3.6 million to $4.5 million each). Compared to selling these home individually, which would have sold for around $2.5 million individually.
What’s Your Next Move?
Once you have finally inked that deal and sold your home, you’ll need somewhere else to stay. When it comes to moving, you might not have to move as soon as you think. Some people get their money three months after the deal and can stay in their home for as long as they need to. The process can easily take a year from the initial conversation through to you receiving the funds, but the payout is worth it since you’re getting more than you would in a regular sale. Lastly you aren’t directly involved in the process and with the proper real estate representation, you won’t have to put that much effort to get the process completed, even though it sounds like a tedious process.