Here are 5 things to consider so you get the best deal for yourself and your community.
1. Start with the right valuation
The big question: How much is my home worth under the new OCP? According to Darcy Schlechtleitner, founder of Rethink Real Estate Group, there are ways of working it out, but you need a realtor with experience and training in land assembly.
“Values can be calculated based on comparable land sales for similar projects and what can be built, but you need someone who knows their numbers and has access to all the data,” says the long-time New West resident. She studied real estate at BCIT and has been working in the New West area ever since. The Land division at her brokerage focuses specifically on land assembly projects. “Make sure you’re asking the right questions of potential realtors: What’s your land assembly history? Have you done this before? What developers do you work with? What’s your understanding of contracts and contract law?” Schlechtleitner says.
2. Voice out all your concerns
So you just put in a new kitchen or had your yard landscaped: Does that affect the value of your home in a land assembly, as it would in a residential sale? According to Schlechtleitner, it can.
“It just depends on the nature of the contract. Everything can be accounted for. That said, it’s also worth looking at the big picture – the money you spent on your renovation, versus the money you could make through the land assembly.”
3. Take emotion off the table
Things can get fraught with any kind of home sale, but Schlechtleitner suggests that when it comes to land assembly it’s best to take emotion out of the equation and view it as a business deal.
“One area you do have to be careful with is what you say to your neighbours once things are in progress. At some point you will probably sign a confidentiality clause to prevent you discussing your individual negotiation with other people. You can still have a friendship with them and leave the negotiation piece to me.”
4. Act fast
The market in New Westminster is hot right now, but Schlechtleitner says it might not always be that way.
“It’s a question of supply and demand. At the moment there’s a lot of demand for land in New West but as more becomes available, of course this will go down. The value of your home will always increase, but in terms of land assembly you need to seize the day and catch the developers while things are hot.”
5. Consider your next move
Once you’ve sold your home, you’ll need somewhere else to live. Fortunately you won’t necessarily have to hire the movers as soon as the ink is dry on the contract.
“There’s no set time – some people get their money after three to six months and can stay in the home for as long as they need afterwards,” says Schlechtleitner. “Our team will also do the hand-holding at the end of the process and help you find your new dream home. By this point, clients know us really well and we’ve established a high level of trust. In fact, the first question we ask at the very start of the process is where you’re going to go next.”
To find out more about Rethink Real Estate Group, visit Teamrethink.com, call 604-783-1250, email firstname.lastname@example.org, or drop into the office at 631 Columbia Street.