Land is a finite commodity – and you have to ask yourself this question: Is the land under your parcel, more valuable than the property itself? Some landlords have heard stories of people getting massive prices for their properties that equate to almost double the value of the property as an apartment building. Sellers might have been approached by a realtor and told about a land assembly, or they might have heard about it at a strata meeting. Potentially the Official Community Plan (OCP) or Neighbourhood Concept Plan (NCP) was changed. The general mentality might be to hold out – just realize that there is misinformation that exists and getting the right advice from the start of the process will help you make the right decision.
How do I know what price I should accept for my property?
Selling property requires the right mix of good preparation and the right number of lots to maximize value. That’s why we complete a full proforma valuation of the property (and many variations of the type of building and number of properties) when considering development alternatives of highest value. Owners need to be informed about going into the process – it must be then vetted against several scenarios, which are as follows:
- What number of parcels will maximize the value of my land?
- Are there any density bonuses that are available?
- How do the CACs, DCCs, and bonus density costs, charged by the municipality negatively affect my land value?
- What is the demand for development properties like this?
- What are the recent sales that would compare to this opportunity?
Our process ensures that owners will be both represented and independent and will make their decision based on well-vetted information and details. Aligning expectations and understanding the land development process is large part of the work we do with Seller. Based on past experience, each owner will then have a strong level of comfort in assessing the final valuation of their property.
Other things to consider:
- Have you upgraded your unit recently? Do I then get more than my neighbor?
- What are the 5 factors you should consider in the valuation of my property?
- Does my property have any unique attributes, like access to common space or cathedral ceilings that would make it sell for a higher price in the market?
- Have there been fewer transaction on my floor, or in my neighborhood, that have caused my assessed value to be lower than I would expect?