ᐅ Dividing a Plot of Land – What Is the Best Approach?

Created on: 2 Dec 2019 14:20
K
kaho674
Hello,
I believe I have asked you a similar question before, so please excuse me if I repeat some points. The situation might be becoming more concrete now, so we are starting from the beginning.

We have a plot of land (aAdW), for which there may be a potential buyer (a daylight house from Town & Country seems to be the preference). The plot measures 2765m² (29,742 ft²) and has a very irregular shape. The client only wants part of it – understandably. We would agree to a subdivision as long as at least two relatively equivalent, buildable plots result. The current negotiation price is €29/m², although there is a kind of cellar/pit/foundation that would need to be removed, which naturally lowers the price.

Attached is the site plan (all oriented north). The blue area marks the existing access road. At its end, there are also two garages, but they would probably be demolished anyway, as they look very unattractive. Apart from that, there are no buildings on the site.


Plot outlined in red, irregular shaped next to yellow road; grey buildings around.


Access has only been possible from the street on the south side so far. To the north, it is probably all private property – including the supposed small road (Dorfstr.) that borders the site there. Whether access from that side is possible still needs to be checked. So far, it looks unlikely, partly due to the elevation changes, which brings me to the second map:


Map view with red parcel outline on yellow background, surrounding roads and buildings.


The entire northern part is a poorly buildable hollow/slope. It drops steeply—if I’m reading it correctly, about 4m (13 feet) downhill from the village road. It is difficult to access and rather unattractive. The small hill by the street in the south, by contrast, could be easily removed and would probably be leveled.

So far, the only subdivision that comes to mind is this one:


Map view: red outline area with question mark, two blue buildings, pink connecting paths.


However, the northern hillside area would only be accessible from the north and really only suitable for sheep farmers. My dad suggested a lift might be an option.
If it is added to the middle area, it probably wouldn’t sell. Demand here is rather limited. Dividing the plot lengthwise doesn’t seem effective either in my opinion. A subdivision across the middle is also not very attractive since the northern buyer would then have this corner extending into their property on the west side. But that option might still be possible:


Map view of a plot with red outline, blue building areas, and pink access roads.


Does anyone have ideas or suggestions? What would you do? In the end, it’s all a matter of price, but we’d rather not give it away. We’d prefer to keep growing the forest there instead.
S
Specki
2 Dec 2019 18:25
Sell everything together, and the new owner can then consider the subdivision and resale?

Less stress for you. Possibly a slightly lower sale price, as property transfer tax and notary fees must be paid on the entire amount...
K
kbt09
2 Dec 2019 18:29
I would also choose division 2. This provides more design options for both plots.

Is the existing access road a public way, or does it basically belong to you as well, meaning that arrangements would need to be made for it?
Y
ypg
2 Dec 2019 18:57
kaho674 schrieb:

And then make the front part more expensive and the back part correspondingly cheaper
I would probably divide the slope and include it as a giveaway. That appears generous.
kaho674 schrieb:

It wasn’t really about maximizing profit. Actually, we’re wondering how best to divide it so that everything sells and nothing is left over because it’s unsellable.
To me, it’s a loss of profit to overthink something that makes little difference. You could spend your time more effectively, for example by convincing one or two more people here about independent garages :P
kaho6742 Dec 2019 19:05
Specki schrieb:

Sell everything together, and then the new owner can think about dividing it and reselling?

Yes, that was our idea too. No chance. We are really almost in the Czech Republic here. If someone takes half, we would already be happy.
kbt09 schrieb:

Is the current access road a public path, or does it basically belong to you as well and would require some arrangements?

The access road is also part of the property and would have to remain available for the rear lot. But I think that can be arranged.
ypg schrieb:

I would probably divide off the slope and include it as a giveaway. That seems generous.

Well, I’d find that a bit too generous. Nothing comes for free!
Y
ypg
2 Dec 2019 19:12
kaho674 schrieb:

Yes, we wanted that too. No chance. We are really almost in the Czech Republic here. If someone takes half, we would already be happy.
......
Well, I think that’s a bit too generous. Nothing is free!

The alternative would probably be to keep the land at the back, because the costs would be disproportionate. I can only shrug my shoulders; it’s a bit like talking to a wall, even though the original poster sees the dilemma themselves.
kaho6742 Dec 2019 19:22
Actually, the final price for everything is fixed. The owner wants 80K for the 2765m² (29759 ft²). The question now is more about how to divide it—both in terms of price and the land itself. If the back part brings in less, then the prime piece will have to be more expensive. In the end, it amounts to the same as if you gave away the slope, so yes—sounds like a good sales strategy.