I have a couple of questions in regards to some real estate that I purchased 2.5 years ago. First a little background...I bought about 25 acres of farmland adjacent to some lake property that is family owned. It was purchased with seller financing at 10% down and a 5% annual interest rate. I have since paid it down to where I'm at about a 45% equity position.
The land itself is about 22 acres tillable split by a line of trees / brush (about 10 acres and 12 acres pieces). It's all currently as a single parcel of land.
I'm interested in selling the 12 acre part of it so that I can free up the money for another real estate adventure (I want to keep the 10 acres for a future home site). The land is located in north eastern Indiana.
So for my questions...how would I got about getting the land split? I have talked to the people I purchased the land from, they are okay with me splitting the land and selling part of it as long as they are paid back in full when the sale happens.
Who would I contact to get it split? Would it need to be surveyed? Or could a previous survey be used? Cost to do something like this? I'm also wondering the best way to market 12 acres of land for sale...as it's pretty small for farmland.
Any feedback would be greatly appreciated!! If anymore information is needed, please let me know!
@Andy Wayne .....GREAT question! I'll be eager to see the responses.
I'm curious....where might your land be? I have NUMEROUS acquaintances in NE IN that would love to find land to build on. If you're willing to share, feel free to do so, either here or via a PM. Thx!
I'm in NJ so take this with a grain of salt... In my rural part of NJ it costs about $10,000 to subdivide a small lot. Yes there is a new survey, an engineer, perc test / soil logs if septic is needed, permits, zoning board applications if needed in your area.
The neighboring farm to one of my properties, of about 200 acres had to be surveyed because they wanted to change use for it (which I fought and won), it cost them about $30,000 just for that survey, plus all the engineering & lawyer hours $$$ sitting through 5 monthly zoning board meetings... all for nothing in the end.
Surveying gets pricey on larger tracts, I think they charge by the linier foot. call a surveyor and tell you exactly what's involved.
I used to build new spec homes but always bought single lots, I never wanted to go through all the hoops of subdividing. It does make sense to do it if you got the large tract at such a great deal though.
Contact your county Planning and Zoning dept. they'll give you all the requirements.
Really depends on your local market. We did a subdivide and all it required was a survey. However this was rural land. Good luck
Thanks for the replies everyone. It is raw agricultural land. I am just looking to basically split it in half and sell the second half as agricultural land.
I'm not looking to put utilities or change any type of zoning so none of that will hopefully be an issue.
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