Owning land is pretty easy (there are some hidden costs) – it rarely takes a lot of effort just to own the land. But when you want to sell, that can be a different story.
Lots of people who own land want to sell it to a developer but have no idea how to do it.
So we’ve put together some tips to help you.
It’s important to know what developers are looking for
A developer wants to be able to build on the property and sell it, so they’re probably looking for property that is close to infrastructure and services (things like water, sewage, power, roads and public transport links).
It’s no good building something that no one can get to or use because there’s no power or water.
It would be fine if the land doesn’t have services but a developer will want to know how far away they are and whether they’re being actively worked on by the city. It’s important to give them all the information you can so they’re able to make an informed decision for themselves. Giving them more information will save some time for you going back and forth if they start asking for things you know but haven’t given them yet. And it will also help them make a quicker decision which means if it is a no from them you could move on to a new developer.
Does it have planning permission already?
Land that has planning permission always sells for a higher price than land without it. And it sells quicker too. Knowing you can already build on the land is far less risky than buying land just to find out you can’t build on it.
Developers may need different permissions but knowing if the land already has some planning permission will be a good indicator for them.
You might want to bypass an estate agent
A lot of estate agents tend to work with residential homeowners who are looking to buy a house to live in. There aren’t too many who specialise in buying vacant land. So, finding an estate agent that has that knowledge and client base won’t be as easy to find.
Estate agents also work with multiple properties at a time so you won’t have their full attention. And then there’s the commission you need to pay if they do sell the land. It’s also important to know what you’re looking for price wise when using an estate agent. Because they’re looking for the commission they could (and not all will) try to persuade you to take a lower price than you wanted so they get that commission.
Be aware of zoning
Developers will be looking to build. Part of that could potentially be subdividing the land and doing additional work to it.
So, they’ll want to know how your property is zoned so they can anticipate the work required to build. Of course zoning can often be changed but zoning changes will just add to their timeline and workflow so it’s helpful for developers to know up-front how the land is zoned.
Be aware of the path of new construction
This one is harder for land owners to know but this will be an important consideration that the developer is thinking about.
If your land is not inside a city then a developer is likely to want to know if the city is growing in the direction of your land. (it’s not essential that it is, but they’ll want to know either way). You don’t have to know this answer yourself but if you do, that will be helpful to developers.
Selling vacant land can be challenging because it is a different type of buyer. But it’s far from impossible. So make sure you do your research and know what they’re looking for. The more you know/ questions you can answer, the more you’ll know if this a viable selling route for you.
And if not..
We buy vacant land. SM Land Buyers buy vacant land direct from you and we don’t need to know all of the information from you. We’ll give you a cash offer so you’ve got money in the bank for your next venture, that big holiday you’ve been dreaming of, or just a rainy day.