With current market conditions, many of our land owners are evaluating the potential benefits of holding or selling their property. To make an informed decision, they must assess multiple aspects from family stakeholders, financial institutions and municipal changemakers alike. Here we discuss a few vital considerations to weigh in order to yield optimal results for all involved parties.
Family Ownership: Executors of estates have a huge responsibility: protect family assets, minimize taxes and make decisions that will benefit the legacy for years to come. In light of today’s rising interest rates, land sales may be used to pay debt or cover expenses while also providing long-term solutions by trading in 1031 exchanges -a process which avoids costly capital gains tax implications. This cash can then be traded into income producing property; guaranteeing an equitable stream of revenue for all involved parties. Additionally, in the event that a portion of the land would be subdivided, the balance of the remaining acreage would need to be considered in an overall vision for future connectivity. It’s always a good idea for owners to align themselves with a land planner early to construct an overall concept plan that matches up with the family vision. Owners are often ready to consider advantageous sale offers if it allows them to preserve their heritage into future generations.
Lender: Lenders and owners alike are weighing the pros-and-cons of property debt in this current market, as interest rates have climbed over nine months. Owners with loans coming due must decide if they’d prefer to refinance their note at a higher rate or take profits from a sale before relocating them elsewhere – factors that weigh into such decisions being prepaid penalty costs, existing relationship dynamics, and timing. Maintaining an awareness of these details throughout ownership is paramount for ensuring deals get done successfully.
Planning Department: The city planning staff are integral to bringing the city’s vision and comprehensive plan into reality. By working on zoning ordinances, preliminary building plans and future land uses, they ensure that each piece of property within their jurisdiction is used optimally in relation to these greater objectives. In this instance then it would be wise for them to consider if the proposed tract could act as a missing puzzle piece necessary for an assemblage or project vital to furthering municipal goals.
When considering a land sale, there are many facets to take into account. From practitioners with specialized knowledge such as lenders and tax specialists to consultants familiar with the fluctuating landscape of the modern market, it is essential that you build your own team of experts in order to make sure all angles have been considered before making any decisions – because when it comes down to real estate sales, nothing can be left untouched!