What are the pros and cons of subdividing land?  When thinking about selling your rural, ranch, or farm land, owners may increase the total sales price but how does that work? What are the advantages and disadvantages of subdividing the property into smaller parcels? And what should landowners understand before parceling land for sale? In this article, we will delve into the details of land subdivision, equipping you with the knowledge needed to make an informed choice and highlighting key factors to consider.

Know The Purpose:

Before you proceed with subdividing your land, you need to know the purpose behind doing so. Subdividing creates smaller parcels of land for the sale, ensuring that you’re selling all the land or some of the land but in more significant portions, which can often lead to higher profits. Subdividing can also make your land more attainable to prospective buyers by breaking it into smaller, more affordable pieces. The question is, do those benefits align with your goals as a landowner? When properly parceled, land subdivision can increase your total property value and increase how quickly you’re able to sell because your property will now appeal to a larger buyer pool.

Legality:

Before you proceed with the subdivision, you need to ensure it is legally allowable. Even in rural areas many sellers are shocked that land use regulations and zoning requirements can be so complicated. Professional real estate brokers like Ronn Cunningham of CJ Real Estate, research the zoning laws and regulations within your area, your property’s area, and the jurisdiction in which it’s located to determine if subdividing is permitted and then pursue the parceling process. Ronn Cunningham remarked, “It is essential for landowners to consult with a professional to avoid legal issues resulting from improper land parceling”.

Determine Land Subdivision Cost:

Subdividing comes with different costs that may include legal fees, surveying, filing fees and more. Eric Johnson of CJ Real Estate effectively summarized the cost-benefit of parceling land for real estate auction when he said, “Parceling is a very effective method of increasing the average selling price per acre. And, it’s common in real estate auctions that the research, surveying and filing costs are passed-along to the buyer at closing rather than being carried by the seller”.

Environmental Issues:

Before subdividing your land, be aware of how parceling may alter land access, the beauty of the land for future users, soil erosion, watersheds, and wildlife habitat. Identify potential environmental issues ahead of time and work with experts like CJ Real Estate to ensure that any parceling makes a positive impact that improves the value of the land.

Marketing Your Subdivided Land:

After the subdivision process, your land’s market value will most likely increase, but it’s important to create a comprehensive marketing plan to attract potential buyers. That’s where it’s vital that sellers employ experienced marketing experts like CJ Real Estate that focus on strategic selling. They’ll identify the characteristics and features that each parcel of land has and what potential buyers would be most interested in. Then tailor a marketing plan that attracts, engages and compels qualified buyers to your sale.

Conclusion:

Subdividing land is a complex process that requires careful planning, legal consultation, and thorough research to maximize its potential benefits. Before making a final decision, consider your goals, legality, cost, environmental impact, and marketing strategies. Successful land investment requires significant attention to detail, working with the right team of professionals, and making informed decisions. By keeping all these in mind, subdividing your land could ultimately lead you to maximize your profits and find a more substantial market for your property.

When you’re thinking about selling, choose the Real Estate auction industry leader. Visit CJ-RE.com to learn how CJ Real Estate will help you achieve top-dollar for your ranch, rural or farm land. Then call CJ Real Estate at (918) 550-8118 to get started.