There are two main differences between transitional and development land. The former is usually a smaller parcel of ten to 300 acres that has already undergone the necessary approvals for a municipality to allow development. It is often located near a commercial area that has roads, utilities, and other infrastructure. The latter is much larger and is generally nearer to an established city. SVN Saunders Ralston Dantzler Real Estate sales associates have extensive experience in transitional and developmental land sales.
While both types of land are considered valuable, transitional land requires special knowledge and experience. Buying this type of property requires a thorough understanding of the market and a long-term strategy. While the price of transitional land is widely varying, the estimated value is usually low. A recent zoning change, installation of city utilities, or proximity to an upcoming development can increase its value. In other cases, it may fall in value, but it will continue to appreciate over time.
The difference between transitional and development land is that transitional land is typically agricultural, wooded, or undeveloped land that is in the process of transitioning to a higher use. In order to make the most of this opportunity, however, it is imperative to perform thorough due diligence. Despite the name, transitional and development lands are still an investment opportunity that will provide you with long-term returns. While it is still relatively cheap in today’s market, the estimated value of transitional and developed lands is still extremely high. These properties may increase in value due to changes in zoning or installation of city utilities, and proximity to a new development.
While a traditional real estate brokerage would sell an existing property at market value and earn a profit, a transitional and development land broker will work on your behalf. They will inspect the properties being offered and will share their knowledge with other buyers. Working with an Illinois real estate agent will give you confidence when purchasing land. You can also benefit from an expert’s expertise and experience. The result will be an investment that will yield a large profit for you and your clients.
The transitional and development land is an investment opportunity in which the highest and best uses of the land are not yet known. Rather, it is the land in between. Regardless of its use, the property value of transitional land can be higher than that of development. As such, it is best to seek out the best opportunities and avoid those that have a high price tag. Once you have an idea of the highest and best uses of the land, you can then use it to your advantage.
Investing in transitional and development land is a good long-term strategy. It is more likely to appreciate in value than in a conventional investment. Using a long-term strategy and due diligence will maximize your ROI. Unlike the traditional investment model, a transitional and development land is generally less expensive than its counterpart. Nonetheless, you must be willing to wait for a decade for it to become a development hub.