When selling a property, particularly one with a large lot, understanding the value of the land is crucial. As Leo Shiu, one of Toronto’s most successful listing agents, emphasizes,when it comes to selling a property, particularly one with a large lot, many homeowners assume that bigger automatically means better. However, in Toronto’s competitive real estate market, it’s not just the lot size that matters—usability plays a key role in determining a property’s value.
Why Usable Lot Size Matters
A property with several acres of land may seem like an attractive investment at first, but not all of that land is necessarily usable. Large lots may include sloped areas, dense tree cover, or even swamps, all of which reduce the flexibility of the land. These areas can’t easily be developed or landscaped without significant expense.
For example, it’s not uncommon for buyers to spend upwards of $100,000 just to flatten hilly land, making it suitable for building or recreational use. This cost, often unexpected, can turn what seems like a large, appealing lot into a less attractive option for potential buyers.
In contrast, flat, usable land offers much more potential. Whether it’s for expanding a home, adding landscaping features, or building additional structures like garages or guest houses, flat land presents endless possibilities with far fewer upfront costs. Buyers are often willing to pay a premium for this flexibility, which is why it’s essential to highlight when selling.
Examples from the Market
A common scenario in Toronto’s suburban and semi-rural areas involves properties with large lots—some boasting 3, 4, or even 5 acres of land. However, a significant portion of this land may be unusable due to natural features like steep inclines or forested areas. Properties on flat land, even if they are smaller in acreage, often attract more interest and sell faster because the entire area can be used without the need for expensive modifications.
When comparing two similar homes in the same neighborhood, the home with a fully usable lot will often command a higher price, even if it has slightly less land overall. Buyers looking to build outdoor amenities like swimming pools, decks, or garden spaces will appreciate the convenience of flat land, which requires less preparation and can be immediately put to use.
What Sellers Should Know
If you’re selling a property with a large lot, it’s important to communicate the value of the usability of the land, not just its size. Providing buyers with accurate information about how much of the land can actually be developed is key to attracting serious offers. Sellers should also be upfront about any potential obstacles, such as sloped areas, that may require costly modifications.
In addition, consider promoting the lot’s existing features that enhance its usability. For example, if part of the land has already been cleared or leveled, highlight this fact as a selling point. Buyers will appreciate knowing that the property is ready for development without additional costs.
Why Choose Leo Shiu for Your Listing?
Navigating the complexities of selling a property with a large lot requires expertise, and this is where Leo Shiu, one of Toronto’s leading listing agents, excels. With over 18 years of experience in real estate, Leo understands the nuances of land value and how to position properties to attract the right buyers.
Leo Shiu has extensive experience in key regions like Toronto, Markham, Richmond Hill, and North York, making him the ideal choice for selling properties with varying land features. His knowledge of the local market, combined with his strong negotiation skills, ensures that sellers can maximize their property’s value, even in competitive conditions.
Whether your property features flat, fully usable land or a more complex lot, Leo’s expertise will help you navigate the selling process smoothly, ensuring you get the best possible outcome for your sale.