What is a land assembly?
A land assembly is when several parcels or lots of land are “assembled” together to create a larger single parcel or lot typically for redevelopment.
Land assemblies can be more profitable and create higher returns than the typical resale transaction. However, they are also significantly more complicated and carry risks that your typical resale transaction does not. As such, it is imperative that the seller be as informed as possible and understand the process and how the transaction works to make the most informed and best decision possible.
With Greyden Douglas and Raincity Properties we ensure our clients understand these unique features and factors by reviewing them before we list the property and again as we consider any offers and review contracts.
It is critical to us that our clients are clear on what the process is and what the risks and benefits are with regards to the land assembly sales process. We also strongly advise our clients to seek independent legal advice with regards to the contracts and sale of their home while going through this process.
Following are a few of the other key things to keep in mind when considering a Vancouver land assembly listing:
Longer sales timeline – Putting together a land assembly is a much more complicated process than simply selling a home. There are several factors that need to be taken into consideration such as an increased number of stake holders, a possible rezoning process, working with the city and finding the right buyer for the right price and getting all the stakeholders on the same page in terms of timing and price. Because of all these moving parts land assemblies can, and typically do, take much longer and can fall apart more easily than a typical transaction.
Market fluctuations – Because of the longer timelines that are typical to a land assembly sale there are factors that need to be considered by the home owners that might no be considered in a traditional transaction. For example, if you get an offer on the site, the subject removal can be 3-6 months with another 6 months to close the deal. That means the seller wouldn’t see the bulk of the proceeds of sale for the better part of a year. We all know that a lot can change over the course of a year and the sellers need to be aware of that when they enter the assembly sales process.
Financial and Legal advice – It is important to fully understanding the legal and financial implications of this process, both positive and negative, so that there are as few surprises as possible while going through this prolonged sales journey. Additionally, it will help you plan for your future purchases or investments and help to mitigate risk.
The land assembly process has become ubiquitous in the Vancouver area, but it is not well understood by homeowners. To have the most successful outcomes it is important that all stakeholders are clear on what the process looks like what the risks and benefits are as well as what t the possible outcomes are. To this end we are always available to consult and help guide homeowners through this difficult decision-making process.
Please call me at 604-218-2289 or email me at firstname.lastname@example.org to have a discussion on how we might be able to help you.