3 Benefits of Land Divisions You Should Know About
Many parcels of land are sold in large tracts, and it is not cost-effective or advantageous for the property owner to maintain ownership of such a large lot. In some cases, the landowner simply does not require that much land for intended purposes. In other cases, the owner does not want to pay for property maintenance or may be looking for financial benefits associated with selling some of the land. In order to sell off a chunk of that land to another buyer, you will first need to legally divide the land. These are some of the benefits associated with selling off divided land parcels.
If you are not using all of your land and if you do not have plans to do so in the future, it makes sense to sell unwanted land for a profit. Depending on the size of the land and its location, this could be worth tens of thousands of dollars or more. Before subdividing the land, however, consider the zoning and what may be built on the properties next to you. In addition, think about how the infusion of cash from the sale may be used to improve your personal finances.
Decrease the Cost of Ownership
Maintaining raw lawn is seemingly without cost at first glance, but this is actually not the case. You will need to pay property taxes on that land, and it may need to be mowed periodically. Fencing and other infrastructure elements may also be on the property and require periodic maintenance. By dividing the land, you may dramatically reduce the cost of ownership while generating a profit from the sale.
Reduce Maintenance Needs
In addition to the cost of property maintenance and upkeep, you also must invest your time and energy into maintaining the property. Property maintenance on even a small piece of land can take up a considerable amount of valuable time over the course of a year that otherwise could be avoided if you divide the land and sell off a chunk of it. Land divisions need to be sold before you stop including it in your maintenance routine. Keep in mind that property maintenance on even raw land may be required to keep pests away, to protect the property from intruders and to otherwise maintain its value.
Dividing land that is not and will not be used is a smart idea in many cases, but there are other factors to consider besides these benefits. If you are thinking about subdividing land that your home is on, the dividing land will determine how far away your neighbors may be. This is only one of many factors to think about as you decide how to proceed.