Exclusive information on collective sale in real estate. Real estate is one of the most lucrative businesses across the world whose market experiences a tremendous growth. There are different deals in the real estate business including collective sales. Popularly referred to as en bloc in French, collective sale refers to a situation where residents of an older property decide to sell their homes at the same time to a buyer. The buyer may be the government or a property developer.
Collective Sale in Real Estate
The truth about collective sale in real estate
– N bloc entails selling the entire property including the land
– The developer or government must get at least 80-90% owners consent and this is normally determined by the condition of the property.
– This is a gradual process and may take up to 24 months
– The owners will get amazing deal, higher than the resale market value.
Benefits of collective sale
Collective sale offers one major advantage over normal sale is the fact that property owners receive more than the property is worth on the resale market. For instance, collective sale homes at a time when developers have identified a potential in the area where your property lies. They think that they would acquire more money than what they are paying for the property. In cases where it is the Government buying the property, other than receiving the compensation, the government may decide to resettle you somewhere else and still benefiting you.
How to tell whether your property has a collective sale potential
– When there is an existing new development within your area, this will cause a sharp rise in land values. Moreover, the values of the property will also rise in the area. In such a situation, investors from different places always want to be part of the development. The same applies to property developers who also think that they can make profits as well. Everyone will be looking for land plots from your area. Your property has a potential in this area.
– There are also cases where some properties were not well planned and built. They occupy too much space as most of the older houses normally have common area as well as low rise blocks. There is no doubt that property developer may want to make good use of every space and construct a densely-packed 40 and above storey-building.
In the aforesaid, it is clear that collective sale in real estate benefits property owners a great deal. Even though it takes time of up to 24 months, the owners are sure of higher prices than the resale market value. It is also important to know our rights and negotiate well for better deals.