Just like Monopoly
"Remember playing Monopoly and trying to buy adjacent properties of the same colour so you could build and collect higher rent? That's actually playing out in real life in Vancouver.
Known as land assembly sales, multiple homes next to each other are being sold together as one package. The deals are attractive to developers and incredibly lucrative for homeowners."
- Humorously described by Huffington Post's Rhianna Schmunk, in a 2015 article on Land Assemblies.
Cooperation and Flexibility
Land assemblies require cooperation between neighbours to make a big paycheque for all parties involved. If one party wants dates moved, this will affect all parties involved. It is important to both be flexible with the needs and timing of the other parties, as well to abide by the agreements that everyone has made together.
One thing that many prospective land assemblies fall flat on is the market value of their property. Just like there is a market value for your home individually, there is also a market value for land assembly blocks.
A common issue with land assemblies is that the properties are priced too high to attract developers. While there certainly are not as many land assemblies for sale at any given time, as there are individual homes, even competing with 10 or 20 other land assembly developments within the Vancouver area will create competition between the land assemblies themselves. Developers tend to be pretty savvy investors and are rarely set on a particular area, so if a land assembly is priced too high, the developer will simply buy elsewhere.
Selling and completion timeframe will take considerably longer than a typical home sale. Often a land assembly block can be on the market for 6-month to 18-months. And even after completion, there are often subject agreements in the contract that rely on zoning issues and complicated deposit structures. It is important to hire a top-notch firm, such as Engel & Völkers Vancouver, that knows the in-and-outs of land assemblies.