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

The value of your existing property will decrease about 5%-10% after you sell your backyard.

Because it was not possible until now. Senate Bill 9 (SB9) was only recently signed into law in 2022 as part of the California H.O.M.E. Act to address the housing shortage crisis.

Your backyard needs to be relatively flat and have enough space to build a small home - usually about 30 feet between your home and the back property line.

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.

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 (unless you have a corner lot). In most cases, you’ll still have plenty of backyard and side yard space.

PeachTree 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.

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.

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

If you have a mortgage, PeachTree 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.

There is no fee, no risk, no credit check, and no obligation to get an offer from PeachTree. It’s quick and easy to find out if your backyard can earn you $100,000.

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

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

Construction timeline can vary, but PeachTree 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.

No, the purchase of your yard is your money to keep. It is not a loan. Use it to pay down your mortgage or anything else you’d like to do! Once the transaction is complete, the money is all yours.

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

PeachTree 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.

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

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 PeachTree, however, we pay for all of these fees. In other words, we will pay for the opportunity to provide you with $100,000 of income.

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.