For
Property Owners
Root Development, LLC specializes in working with property
owners to develop their land. These partnerships provide Root
Development with opportunities for diverse projects and provide
property owners with a chance to share in the adventure and
profits of real estate development.
The
FAQ’s below represent a few things that any property
owner looking to sell his/her land should consider before
selling:
Before
you sell your property, you need to determine its “highest
and best use” in order to ensure you get a fair
price.
If
you currently own property that you have an interest in selling,
it is important to consider whether your
land is
currently being used at its “highest and best use”.
For instance, if you currently own a single family
home, you may think that
your property is worth about as much as the other
similar single family homes that have recently been
sold in
your area. While
this may be true, it is possible that your property
could be turned into an apartment building or condominium
complex.
If
this is the case, your property is worth much more
than a single family home because it has development potential.
How
do I know if my property is at its “highest and best” use?
Does my property have development potential?
Due
to no fault of their own, most owners do not know the true
value of their property. Only those
people with knowledge
of the many real estate market factors can
truly assess
the highest value of the property. Real estate
brokers are fairly
good at setting sales prices, but many of
these professionals fail to account for a property’s potential for development
when setting an asking price. Accordingly, your real estate
broker’s price may be too low. If you
really want to know the value of your land,
you should
consult a developer.
Wouldn’t
a developer try to low-ball me on the price so that he
can keep all
the value of the
land for him/herself?
Under ordinary circumstances, the answer
is yes. If you are talking to a developer
who wants to buy your land, you should
consult a real estate broker to make sure
you are getting a fair price. That having
been said, certain developers want to
work with land owners in a partnership
in order to benefit both the developer and
the land owner. Root Development is one of
those developers.
What
happens if I’m thinking about
selling my property and I call or
email Root Development?
To begin, Root Development will respond
to your communication and let you
know that we
have received
it for review.
Next, Root will analyze the “highest and best use” of
your property to determine if there
is any development potential. If
there is
potential, Root will put
together a preliminary
developmental plan, including projected
profits
for the property owner and Root Development.
If the property
owner is interested
in pursuing the proposed plan, contractual
agreements will be drafted and agreed
to by Root Development
and the
owner.
After
that, development begins.
Please note that there is obligation between
the property owner and Root Development until
the contractual agreements
have been signed. Any communications before
then are solely for the purpose of determining
if a development partnership
would be beneficial for both parties. An
owner does not risk anything by contacting
Root Development.
Will I make more money by partnering with
a developer as opposed to selling my land
outright?
While there are no guarantees in
the development business, an owner
should make significantly
more money by partnering
with a developer. Again, an owner
who
sells his/her property to a developer
is losing
out on the
profits of the development
potential. The developer who is
buying your land outright will pay
the minimum
amount so
that
he can keep the
inherent, “highest
and best use” value for him/herself.
If I were to enter into a partnership with
Root Development, what would my duties include?
In a development partnership
such as the one described herein,
the
owner’s
only obligation is to provide
the land. Root
Development will handle
all development
responsibilities.
I have more questions.
Please do not hesitate to contact Root
Development, LLC at our email address: contact@rootdevelopment.com.
We will be happy
to answer any of your questions.