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Two-for-one deals are not common in the real estate market.

Two-for-one deals are not common in the real estate market. Unfortunately, most of the situations I have encountered were unintentional. Misunderstanding a property’s potential can be an expensive mistake for sellers.

I represented someone who bought a house on a large lot. Without hesitation, he purchased the property as quickly as possible, paying the full asking price. He immediately subdivided the land, resold the house for almost the same price he bought it for, and was left with a vacant home lot valued at $125,000.

Prior to selling a property, home owners typically obtain a comparative market analysis, often referred to in the industry as a CMA. The initial CMA for the property my client bought was accurate, as evidenced by the amount he resold it for. However, it failed to identify potential to subdivide, a costly oversight for the seller. Realtors alone may not have the expertise to assess the best use of a property. The opinion of a lawyer, land surveyor and an engineer may be required to ensure you are maximizing your profit.

– Elias Metlej is a real estate lawyer with the Halifax firm Blois Nickerson & Bryson. You can write to Elias at askelias@yahoo.com

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