How to Turn an Ugly Lot into a Real Estate Diamond

How to turn an ugly lot into a real estate diamond

Many real estate owners make the mistake of abandoning a bad lot. However, there are actually a number of ways to improve it. You can turn a bad lot into something that multiple customers will want to buy.

Address Potential Concerns

Owning the land can be a great investment if you do it properly. There are many concerns to address. First, make a call to the local planning department; it can tell you the zoning class. You can then query what kind of buildings are allowed here. Obviously, consider the real estate property that can generate the highest return. You also need to understand the topography of the land itself, to see what can and cannot be built. Google Earth can be an invaluable tool here. Other things to address include your annual tax obligations. Some can be as high as 15% of the total value, which is far too high. There are also thousands of properties in the USA that do not have access to a road. Furthermore, some lots can come with garbage or other environmental concerns; inspect it and clean it up.

Real Estate Utilities

You might get everything else right. However, if you cannot get water or electricity on the property, it is useless. Thus, you cannot sell the lot, if it is not able to accommodate utilities. One very problematic area is sewerage. If you own a lot in a rural area, then it might need the pass the Percolation Test. If a real estate lot does not pass this test, then no sewerage system can be built. This also eliminates the possibility of building a property.

Market Well

If you have an ugly lot, you definitely need to highlight its good spots. So, if it is a bad area or if it has bad proportions, then sell it to the right audience. Highlight what the lot can do, not what it cannot do. There is always a use and a demand for land. However, be precise and careful about what you say. If you mislead buyers, it can lead to a lawsuit.

Remember to do your research and to address all potential concerns. Once you do so, you can sell any real estate lot that you want, no matter how ugly it is.