Pricing a Multi-Family with Subdividable Land

[Mary Lebreq]

Hi Everyone,

Love all the great advice here.

First time posting, and hoping to get some guidance on how best to handle this situation.

We are thinking of selling our 14 unit multi-family. It is on a large lot (about an acre), and we believe it is sub-dividable into 2 additional lots. We would expect each new lot to sell for at least $80K.

Our question is, how would we price the subdivision potential into a sales price for the property?

Thanks much!

[Matthew Paul]

The potential of a subdivision has a value of little or nothing .  Its not a given only a possibility . The only way for you to profit from it is to have it subdivided prior to sale . 

I dont believe there is a line on an appraisal that takes potential subdivision into account