Which will get you more money if you have a big lot, keep it as is with a home or subdivide it?

“I have a very wide lot and don’t use it. Do you think it would be beneficial to sell it and subdivide it or do you think I will get more money keeping it as a wide lot with my home?

The decision to keep a wide lot as is with a home or to subdivide it depends on various factors, including your goals, local zoning regulations, market conditions, and your financial situation. Here are some considerations for both options:

Keeping it as is with a home:

• Market Demand: Evaluate the current demand for larger lots with homes in your area. Some buyers prefer spacious lots for privacy, landscaping, or other amenities.
• Zoning Regulations: Check local zoning regulations to ensure that the current configuration complies with the rules. Some areas may have restrictions on subdividing lots.
• Property Value: Consider the potential value of the property as a whole. Large lots with homes may attract a specific demographic willing to pay a premium for the extra space.
• Development Costs: Subdividing a lot may involve additional costs, such as surveying, legal fees, and infrastructure development. Keeping it as is might be more cost-effective.

Subdividing the lot:

• Market Trends: Research current market trends and demand for smaller lots. In some cases, subdividing can increase the overall market appeal and attract a broader range of buyers.
• Maximizing Profit: Subdividing can potentially increase the overall value of the property, allowing you to sell multiple smaller lots at a higher total price than the original large lot with a home.
• Zoning and Regulations: Ensure that local zoning regulations allow for subdivision, and understand any restrictions or requirements imposed by local authorities.
• Infrastructure and Utilities: Assess the feasibility of providing necessary infrastructure and utilities for the subdivided lots. This may impact the cost and logistics of the subdivision.
• Marketability: Consider the appeal of smaller lots in your market. If there is demand for more compact living spaces, subdividing could make the property more marketable.

If the township or city or wherever you live will let you separate, usually 99% of the time it’s worth more as a full separate lot than as opposed to you having a hundred feet of frontage and your neighbor only has 70, they’re not gonna care.

The decision will depend on your specific circumstances and goals. Consulting with a local real estate professional or a land-use planner can provide valuable insights into the market conditions and potential outcomes for each option in your particular location. Additionally, speaking with a financial advisor can help you assess the potential costs and returns associated with each choice.