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What will be built on the land that I sell?

A new single-family home (or duplex) will be built.

How will this affect my property value?

Following the lot split, we generally expect the value of your existing property will decrease 5% to 10%. As part of the Yardsworth process, an independent appraisal is conducted to determine your home’s new value. Learn more here.

Why have I never heard of this before?

Because it wasn’t possible until now. Senate Bill 9 (SB9) – also known as the California H.O.M.E. Act – was signed into state law in 2022, giving homeowners the ability to split off and sell backyard land (in order to create much-needed housing). Here is a great overview from the California Senate.

What types of yards work?

Your property must be zoned single-family, be relatively flat, and have enough space for a new, small home to be built – usually about 30 feet between your home and the back property line. If you’re not sure if you qualify, just ask us!

What is the process for Yardsworth to purchase part of my yard?

First, we assess the feasibility of a lot split on your property. This includes site conditions, city requirements, and seeking approval with your lender (if you have one). If everything checks out, we then coordinate specialists (e.g. civil engineer, surveyor, etc), fill out the required documentation, and submit a Lot Split application on your behalf so the land can legally be sold (it cannot be sold until after the Lot Split). We handle – and pay for – everything.

How does Yardsworth determine the Offer Amount / Land Value?

We give you the best market-rate offer we can. The offer is based on a variety of factors including but not limited to backyard size, location, shape, site access, and comparable land listings.

How quickly can I get my offer?

Fast. Typically between 24 – 48 hours of submitting a request for an offer.

How much of my backyard do I sell?

Functionally, at minimum, you give up 1,500 square feet of backyard space, meaning your back fence will come in. In most cases, you’ll still have plenty of backyard and side yard space.

Technically, under California law, the land that is to be split and sold must be 40% of the existing lot size and requires “frontage” – access to the street. The shape of the lot that is split off usually looks like a flag and flag pole, with the flag being the rear yard space and the flag pole being a path on the side of the home to the front of the property.

Who will own the new home built on the lot?

Yardsworth or our developer partner will either sell the new home to an interested buyer or rent it out to a tenant. Your original lot, remaining yard, and all structures on that part of your property are still owned by you.

How is my home & driveway affected?

Your life, your home, and your property value should be minimally impacted. You still own 100% of your home, will still have backyard space to enjoy, and you’ll retain full use of your driveway! If a future resident on the rear lot has a car, it will be parked on the street.

How is it Tax-Free?

Your land has an assessed tax value (and so does your house, separately). When you sell a portion of your land, it is considered a “return of basis” from a tax perspective, meaning there is no taxable gain – and therefore no tax. In some cases, where the land assessed tax value is low, a portion of the sale may be taxed.

Disclaimer: Yardsworth does not provide tax and accounting services and makes no guarantees. Please speak with a tax and/or land assessment professional.

How will this affect my mortgage? Do I need permission from my mortgage lender?

If you have a mortgage, Yardsworth will help you obtain written approval from your lender to grant a partial lien release, based on your new property line.

In some cases, your lender may require that part of the Land Purchase Price go to paying down the mortgage before they approve the sale.

Is there any cost or credit check if I request an offer?

There is no fee, no risk, no credit check, and no obligation to get an offer from Yardsworth. It’s quick and easy to find out how much you can earn.

How does the lot split and sale affect my property taxes?

Your property will be smaller following the split, which causes a slight drop in home value, usually around 5% to 10%.

The lot split won’t affect property taxes, although you can request to have your property reevaluated following the split to see if you’ll owe less.

SB 9 should not affect a property’s Prop 13 status, but it will reset when a lot is sold.

Disclaimer: Yardsworth does not provide tax and accounting services and makes no guarantees. Please speak with a tax and/or land assessment professional.

Will this affect my utilities and bills?

No, your utility bills will only apply to your home and will not be affected by any home built on the lot you sold.

How much construction will there be behind my house / how long will it take?

Construction timeline can vary, but Yardsworth and it’s builders try to complete construction as fast as possible; the longer construction takes, the more it usually costs. So, we’re always aligned to complete it as quickly as possible.

Is Yardsworth loaning me money that I have to pay back?

No, the purchase of your yard is your money to keep. It is not a loan. Use it to pay down your mortgage, for college tuition, to buy a boat, take a vacation, or anything else you’d like to do! Once the transaction is complete, we’re simply neighbors.

Is Yardsworth buying a piece of my equity / sharing in my future appreciation?

No, Yardsworth never shares in any appreciation of your home value. The value and upside of your home is (and should always be) only yours!

Will there be separate access to the new home / lot?

Yardsworth creates private access to the new lot – typically through a side setback or alleyway. We also ensure your privacy by building new fencing on the lot line.

Who will be the new residents in the back lot?

It will be occupied either by a new owner or long-term, qualifying tenants. Vacation rentals like Airbnb are not allowed.

Can I do this on my own?

Of course. But, it can cost $50,000 – $80,000 to simply split a lot. These are fees that go to the city and other required 3rd parties. If you pre-sell your land to Yardsworth, however, we pay for all of these fees. In other words, Yardsworth will pay for the opportunity to provide you with 6-figures of income.

How long does it take?

Varies depending on the city but it usually takes between 4-6 months working with the city to “create” the new lot so that it can be officially purchased from you.