In this edition of Land Assembly 101 we take some of your most frequently asked questions and have them answered by our Team.
A: An MLS Listing Contract is the preferred agreement used by residential agents when selling your home. MLS Listings target and attract buyers who are specifically interested in buying a home. Developers, on the other hand, source sites through reputable brokerages such as London Pacific and not via MLS.
If you choose to sell your property for re-development, London Pacific will use an Exclusive Listing Contract to solidify an agency relationship and our commitment to work for you.
You may be asked to put a “FOR SALE” sign on your property, but you will NOT have to prepare for a showing or Open House.
“London Pacific has a network of 500 plus developer groups” – Thomas Trowbridge, Development Land & Investment Properties
A: Development Land Contracts are structured differently than residential Contracts of Purchase and Sale. There will usually be 1-2 conditions or subjects required by the developer buyer that could be anywhere from 30 to 300 days in length depending on the nature of the development proposal.
There could be extensions requested on possession, depending on the Municipal approval process, which can provide favourable rent-back terms and periods for our clients. We ensure that there is no ambiguity about when to look for a new home, but that usually won’t be recommended until your Agreement becomes firm and binding.
“Rent-back options provide our clients with the ability to stay in their home for favourable terms. While the developer prepares for demolition our clients can take the time they need to find their next home” – Ben Williams, Senior Broker Development Land & Investment Properties
A: London Pacific is constantly setting the benchmark for highest and best value through brokering large land transactions all over Metro Vancouver. We provide a detailed valuation evidenced by a development proforma at the beginning of our sales process. Not only is this valuation thorough, but it is also ongoing – new market intelligence is constantly being considered and communicated – no hidden value is left on the table.
“Developers use London Pacific as one of their sources for current land values and comps” – Grant L. Gardner, Senior Broker Development Land & Investment Properties
A: You can expect the costs associated with selling your property for redevelopment to be the same as when you sell your home in a residential transaction. These costs include: Commission, Legal or Conveyance Fees, and Capital Gains if applicable.
“At the end of the day, you need the right brokerage and a commercial land agent to maximize the return on your property investment” – Keath Williams, Managing Broker