Can a property be developed?
You may be able to develop or subdivide a property, but there are several factors you will want to consider.
- Suitability – Characteristics of the property, such as location, amount of high ground, and topography, as well as proximity of amenities.
- Access – Be sure that the current access would adequately meet the needs and requirements of your development.
- Utilities and improvements – Know what road standards will need to be met, what utilities are available, and any cost(s) associated with providing access and utilities to any newly-created tracts or lots.
- Zoning – Ensure that current zoning will allow the development you are planning, or seek to have the property re-zoned to a one that will.
- Highest and best use – To optimize your value you will want to use the property in its optimal way, which may be as a larger tract or smaller subdivided tracts.
- Market conditions and timing – Before you invest time and money into developing a property, consult a real estate professional for any insight they might have on pricing and marketability of the developed land.
- Financing available – You will want to be sure that you have or can secure the finances needed for the development and that prospective buyers will be able to secure any finances necessary to purchase.
- Tax consequences – Consult an accountant or tax adviser on how proceeds from selling tracts will affect your personal tax situation.