🤔 Seeking Advice: Combining Adjoining Waterfront Lots - Pros & Cons?

Question

Hello everyone,

I'm in the process of deciding the best course of action for selling my property, and I could use your collective wisdom or experiences on this matter. I own four adjoining vacant lots, each approximately 0.65 acres in size, making up a total of 2.5 acres. These lots are all waterfront properties, providing about 325 feet of navigable waterfront access. Each lot is zoned Single Family Residential.

Here's my dilemma: I am considering whether I should formally combine these lots into one large parcel before selling, or if it's better to keep them as separate entities. I intend to sell all four lots together as a package deal, regardless of whether they're combined or separate.

Pros of Combining Lots:

- Simplified Selling Process: Potentially easier to sell one large parcel than multiple smaller ones.

- Increased Marketability: A larger, single lot may appeal to buyers looking for more space and privacy.

- Potential for Higher Value: Combining the lots could increase the overall value due to the larger size and unified waterfront access.

Cons of Combining Lots:

- Limiting Buyer Pool: Some buyers may be interested in smaller, less expensive parcels.

- Zoning and Regulation Challenges: Combining lots could complicate zoning and what can be built on the property.

- Costs and Legalities: There may be costs and legal procedures involved in combining the lots officially with the county.

I'm leaning towards combining them for the simplicity and the unique appeal it could offer to a certain market segment. However, I am concerned about potentially narrowing the pool of interested buyers or encountering unforeseen legal and zoning challenges.

If anyone here has gone through a similar decision-making process or has expertise in real estate, particularly with waterfront properties, I would appreciate your insights. What are the pros and cons you've experienced or observed with combining lots? Are there any pitfalls or advantages I might not have considered?

Thank you in advance for your advice and experiences, I look forward to your responses.

Best regards,KC

V.G Jason · Answer

Great question. And something I am thinking of too, but unfortunately I got none waterfront. Confirm what you can do zoning & build wise if you combine lots first, and the upfront costs. If you're able to do what you can do now then why not both?

Is there a both option? Combine 2(into 1) and keep 2?

Really depends on what's available in the area, if .65 acres is stock. But 1 acre + is in demand then definitely combine to make two sets of 2 and sell. If 2 acres is highly in demand, then combine 3. And keep 1 separate. If 2+ acres is super rare and a buyer would pay extrinsic--combine them all. Think demand should drive your answer.

Sean Hudgins · Answer

One Thing to consider is what is around the lots. Are there other 2.5 acre lots in that area? or are they mostly around the half acre size? I would suggest that those buyers that want a 2.5 acre waterfront estate want to be surrounded by those types of properties, not tract homes on .65 acres.

Have you considered partnering with a builder to develop out the four lots? It would be a longer time horizon but could increase your profits substantially. I think that if you can find the right builder in the area they would be more than happy to develop out those lots and do the hard work of marketing them to the public.

I think the biggest question I have is really the surrounding area and what would be the most appropriate use of the land according to its surroundings.

If you end up keeping the lots separate I would not suggest a package deal as you lower your buyer pool substantially, I would sell them all separately, and maybe make mention in the listing that they can be combined as a package.

Bruce Woodruff · Answer

I have no experience with this exact situation....but since you're asking for opinions....I would sell them separate lots. Easier, quicker and possbily more money (?)

If an investor wants them all, they can buy them and combine them themselves...

Sean Hudgins · Answer

@KC Pake Well Thank you for your services as well sir! I wish you luck and i'm definitely interested to hear how it goes.

V/R,

Sean

Sean Hudgins · Answer

Happy to help!

Are the lots on the St. Johns River? I spent a good amount of time visiting down in that area when I was in the Navy and I do love the idea of navigable waterways. What kind of pricing were you considering when doing separate or combined?

🤔 Seeking Advice: Combining Adjoining Waterfront Lots - Pros & Cons?

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