Buying a house with land to sell

Buying a house with land to sell

Investor · Charlotte, NC · Member since 2021 · 16 posts · 4 votes

Has anyone ever bought a SFR that had some land with it and sold some of the land but kept the house? Have a great opp but not sure how to go about it. The land isn't buildable the neighbor just wants to buy an acre for extra privacy.

0Reply
14 views

6 Replies

Jump to latestLatest
  • Brenden MitchumBusiness Member
    Rental Property Investor · Atlanta, GA · Member since 2019 · 1k+ posts · 872 votes
    5y

    Hey @Kameron Grady, sounds like you own a single parcel and you want to sell off a portion of it. That means you'll need to split the land into two separate parcels. I've never done this before but I would assume this starts with talking to your county (or city). Perhaps the planning and zoning department? I'm sure you'll need to have surveys done and whatever else comes with the process but they should be able to lay that out for you. Once the land you want to sell it a separate parcel, you're good to make a deal with your neighbor.

    Hope this helps a bit - please, feel free to reach out anytime if you have other questions or just want to chat!

  • Real Estate Professional · West Palm Beach, FL · Member since 2012 · 23k+ posts · 13k+ votes
    5y

    Yep, your planning and zoning felt is where you start. This should be easier than most lot splits since the piece you’re breaking off doesn’t need to be a legally buildable lot in it’s own, it could be added/incorporated into your neighbor’s parcel if necessary.  
    The only restriction is that your remaining lot is large enough so your house meets all the set back requirements along with the minimum lot size. 

  • Property Manager · Member since 2021 · 59 posts · 21 votes
    5y

    @Kameron Grady Yes, I have. If you do not have any use for it get some capital to improve the current property or use it for the next investment! 

  • Investor · Charlotte, NC · Member since 2021 · 16 posts · 4 votes
    5y

    @Daniel Johnson how did you go about selling? I would have a lien on the property then have to subdivide and then get approval from the lender who has my mortgage wouldn’t I?

  • Property Manager · Member since 2021 · 59 posts · 21 votes
    5y

    @Kameron Grady Luckily for me it was an additional lot, so I just sold it. I think you are on the right track, I'd reach out to your legal time to confirm. Keep us posted! 

  • Real Estate Professional · West Palm Beach, FL · Member since 2012 · 23k+ posts · 13k+ votes
    5y
    Originally posted by @Kameron Grady:

    @Daniel Johnson how did you go about selling? I would have a lien on the property then have to subdivide and then get approval from the lender who has my mortgage wouldn’t I?

    Yes, you’d have to get a partial release from your lender. You might to pay a portion of your sale proceeds to reduce your loan balance, or not, depending on the lenders view of the “new” value.

Join the conversationCreate a free account to reply, vote on answers and follow this thread.