Dividing Land To Sell It In Georgia
This is Brad from North Georgia Land Buyers and Arbor View Properties. We are a real estate investment business and also work as investors and developers. We purchase properties throughout the entire state of Georgia, not just in North Georgia. I have extensive experience in real estate investment and am a licensed real estate agent in Georgia with One Source Real Estate located in Woodstock.
Today, let’s discuss the idea of dividing your property to sell it. Often, this can be the best approach when selling a parcel of land. Developers frequently make more money than individual sellers by improving and subdividing land into smaller, more manageable pieces.
Think of it this way: they say, “How do you eat an elephant? One bite at a time.” Similarly, selling a large piece of land can be challenging as not many buyers are interested in purchasing a whole parcel. However, there may be individuals who would like to buy just a small portion. So, it’s worth considering that sometimes it makes more sense to divide your property before selling.
Dividing The Property
When dividing your property, the first step is to check with your local county and zoning commission.
This will vary depending on whether you live within city limits or in an unincorporated area.
If you are in a city, you will need to speak with city officials.
In unincorporated areas, especially in Georgia, you’ll generally work through the county’s zoning office. They can inform you about your current zoning status and whether you need to rezone the property. They will also provide guidance on the minimum size for subdividing the land.
If you plan to sell the divided lots, consider the minimum lot size required for septic systems. If your buyers intend to build a house and there is no public sewer service available, an onsite sewage treatment system (commonly known as a septic system) will be necessary. In Georgia, the minimum lot size for this is typically around one acre, specifically 0.92 acres of gross usable lot area. However, not all of this space may be usable, so it’s advisable to consult with the county’s environmental office for a clear understanding of the regulations.
When considering dividing your properties, it’s important not to make the lots too small. If a buyer purchases a lot expecting to build a house, they might later find out that they cannot obtain a septic permit because the lot is too small. This situation could lead to complications where the buyer has to purchase additional lots from you, resulting in extra costs and effort on your part to divide the land into larger pieces.
Hiring A Surveyor
To avoid these issues, it’s crucial to consult with a surveyor before proceeding with any divisions. Surveyors have the expertise to assess the land and provide valuable insights on how to best divide the property. They will evaluate various factors, such as the topography and features like rock formations, creeks, or streams. By doing so, they can offer the best advice on how to divide your property effectively while ensuring it meets necessary regulations.
Dividing your property can be costly. When you hire a surveyor for a subdivision, often referred to as a minor subdivision, depending on your municipality, this process may involve creating anywhere from two to seven lots. However, if you plan to create more than that, additional requirements come into play. You’ll likely need stormwater surveys, street lights, and other advancements that a larger developer would handle. These additional requirements mean more stringent regulations and significantly higher costs compared to a minor subdivision.
It’s important to note that hiring a surveyor can be expensive—potentially costing you thousands or even tens of thousands of dollars, depending on the size of your property. The surveyor must walk the entire property, assess all aspects, mark new boundaries, and ensure everything meets the specified requirements. This thorough process will add to your expenses.
Therefore, if you don’t have the funds to cover these costs, dividing your property may not be in your best interest. It’s advisable to consult with a surveyor to understand the specific requirements and costs associated with your municipality or county.
Selling Land: Divide or Sell Whole?
If you decide to sell your property, you’ll likely find it easier to sell smaller parcels rather than a large piece of land.
Consider your potential buyers: there are many more individuals who can afford to purchase smaller chunks of land instead of a hefty hundred-acre parcel. Most buyers don’t have the financial capacity to buy such a large area, meaning the pool of interested buyers is much smaller for larger parcels. In contrast, more people are willing and able to buy smaller pieces, such as one, two, three, or four acres, because it represents a more manageable investment for them.
Keep this in mind when planning to sell your land. If you go this route, it’s important to hire a surveyor. Additionally, consulting with a real estate professional who specializes in land transactions—such as a broker or agent with experience in this field—is crucial.
Avoid working with just any agent; for example, your sister’s friend who typically sells single-family homes may not have the necessary knowledge about land sales. You should seek out someone who understands the intricacies of land transactions to ensure a successful sale.
Hiring A Professional
When selling your land, it’s important to seek advice on what it might be worth. Professionals will examine comparable sales and assess land values in the area. They will also inquire about how quickly you want to sell the property.
If you want to sell it fast, you’ll need to set a lower price. However, if you’re willing to wait and hold out for a higher price, it may take longer to find a buyer, or you might not sell at all over the next year or two.
I encourage you to take a drive around areas with vacant land and lots. You’ll likely notice many old, faded, moss-covered “land for sale” signs. This observation may lead you to realize that certain parcels have been on the market for a long time. The reason for this is often tied to pricing. Basic economics dictate that any sale ultimately comes down to price. When you have a limited number of potential buyers—perhaps only five in a given year—if all of them believe the price is too high, none will make an offer. You can set any price you want for your property, but if buyers aren’t willing to pay that amount, you’ll end up holding on to it indefinitely.
The saying goes that 90% of something is better than 100% of nothing. It’s important to keep that perspective in mind. If you don’t need to sell your land right away, then you have the freedom to do whatever you want with it.
However, if you do need to sell it within the next month, two months, or even up to six months, you should carefully consider how to price it.
I hope this information helps you out. Be sure to check out all of our other videos on North Georgia Land Buyers or visit our YouTube channel, where we review various properties.
Connect With Us
I’m a licensed agent in Georgia, but primarily, I focus on investments and development. I purchase properties throughout the state, so if you’re interested in working with us or receiving an offer for your property, please visit northgeorgialandbuyers.com.
I hope you found value in this video. Don’t forget to check out our other content. I look forward to working with you. Thank you!