How to Assess the True Marketability of Subdivided Land Before You Proceed

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Construction Advice and News If you are looking for a fun and informative blog which will tell you all of the things you need to know about the construction industry and how it can help you to realise your dreams, you have come to the right place. My name is Sandy and ever since I called in a construction company to carry out work on my property, I have been hooked on learning all I can about the industry. I kept in touch with some of the construction crew and they have been teaching me everything I need to know about this subject. Enjoy!


If you own a sizeable plot of land and have been sitting on your investment, it may be beginning to burn a hole in your pocket, and you may be ready to sell it instead. You may understand that it has a certain value as-is but may be interested in subdividing it so that you can increase that value exponentially. However, before you get too carried away, you will need to go through a very thorough and rigorous research project, where you do your due diligence to find out exactly what is possible. What are some of the key points to consider as you begin the subdivision development process?

Assessing the Market

If the piece of land that you bought is quite substantial, it may be quite tough to sell it in one undivided piece, as it will only appeal to a certain category of buyer. However, people are always looking for smaller plots of land so that they can build the home of their dreams and surely, if you slice it up then people will be running towards you with their cheque book.

However, it does not necessarily follow, and you first need to ask experts in the vicinity to guide you as to its marketability. Ask real estate agents to determine the average value of an improved lot and ask builders to calculate how much it would cost to construct something saleable in each case.

Dealing With Red Tape

Furthermore, you may encounter a lot more red tape if you are planning to slice up a very large lot, as this can require a good deal of expertise and input from many different directions. For example, some of the lots may not face an existing public thoroughfare, and you might have to introduce elements of infrastructure and utility lines where they did not exist before. In this case, expect a lot more attention from local, state and even federal regulators in some cases. They may look at this as a small-scale community instead, rather than a simple land development.

Look for Restrictions

Always remember to check for restrictions before you proceed much further than theory. Are there any ordinances, covenants or deed restrictions that could scupper your plans, and will you be able to get the appropriate insurance to cover the entire project?

Not Everything Is Saleable

If you've made some simple calculations on the back of a cigarette packet, you may have divided your lot into relatively equal segments and expect to earn money from each. Once again, this will be fully dependent on the scale of the entire project. Some municipalities may require you to "reserve" some of that area for open space, and you may need to do those calculations once again.

Proceed With Caution

As you can see, you will need input from many different experts before you can proceed with conviction. Make sure that you bring in the most experienced contractors at every stage of the process, to give you the best chance of success.

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