ADD VALUE TO YOUR REAL ESTATE NOW

ADD VALUE TO YOUR REAL ESTATE NOW

By Michael J. Cacace

It may seem counterintuitive or it may even sound downright foolish! However, despite the fact that we are obviously in a terrible economy and the real estate market is suffering on both the residential and commercial sides, this may be an opportune time to process the land use application you have thought about.

In fact, obtaining a land use approval may be an inexpensive way for forward-thinking property owners to add considerable value to their real estate holdings. Whether you are a homeowner, developer or a commercial landlord, a simple subdivision, variance or site plan approval can dramatically increase the value of your real estate. Maybe the excess acreage you own can be spun off to create liquidity. Perhaps an approved variance for that yet to be built garage or addition will help attract a better offer from a purchaser. Commercial property with an approved site plan for development will certainly be viewed as more valuable than raw land. Moreover, prudent developers will be ready to start new projects when the market turns and be ahead of the curve. Maybe now is the time to take a non-performing asset such as commercial or retail space and change its use.

Furthermore, in this economic climate your application will likely be processed quicker and more inexpensively than it would during a hot real estate market. Make no mistake about it, during a cyclical downturn in the real estate industry, land use boards are less busy and can process applications much quicker. The professional team you will need, including experts such as engineers and surveyors, are less busy and will be able to give your proposal immediate and more attention than during busy times – and perhaps at less cost. Some even say that municipalities are likely to look more favorably upon new development applications to shore up suffering Grand Lists and increase tax revenues.

So, smart owners of real estate may seize this downturn in the economy and turn it into an opportunity to create value. Whether it yields immediate results or is a modest investment which can result in big returns later on, now may be the perfect time to process the land use application you’ve been thinking about.