If you have more land than you need, you may have wondered if you could sell off a portion of your property. If you own a large piece of land, selling a piece of your land for a profit might be a way to earn some extra income. Or maybe it could be a way to cover some of the costs of maintaining the rest of your land.
Does the Property Have Multiple Parcels?
Before you go any further, you should understand if your property consists of more than one parcel of land. It’s common for land to be sold in larger holdings that consist of more than one lot or parcel of land.
If the portion of land you want to sell is already a separate lot, it will be much easier to sell. If not, the part of land you want to sell may need to be subdivided. If that’s the case, there are more rules to comply with and the process is more costly.
Subdivision of Land – Planning Permission
Subdivision of land is dividing one piece of land into two or more smaller pieces. Most counties and cities have regulations to control the subdivision of land. Consult your local planning, zoning, or development department to evaluate what rules apply in your situation.
Here are some common requirements to consider before meeting with the planning office:
Minimum Lot Size
When land is subdivided, normally each new parcel has to meet a minimum area. The size requirement varies by location from a low of around 2,500 square feet in a city to 5 acres or more in suburban areas.
Access
Normally, the new parcels would require adequate legal and physical access. In other words, they would need either public or private road access. The purpose of this is to avoid creating a landlocked parcel.
Utilities
You may also have to bring utilities or other infrastructure to the new parcel. Requirements might include extending sewer service or showing that the ground of the new parcels will pass a percolation test for a septic system. This ensures the lots are suitable for housing.
Selling Land For Cash
One way to sell a portion of your land is to sell to a real estate investor. This can save you valuable time. You won’t need to search for and interview a real estate agent or create your own marketing to sell land by owner.
One of the other benefits is that land buyers are experienced professionals with expert knowledge. They can guide you through procedure of splitting your land.