Three tips for selling a plot of land
It's surprisingly common for people to purchase an undeveloped plot with the intention of building a property, only to find themselves selling it a short while later. There are a hundred and one reasons why this might happen; financial issues, unforeseen construction problems or a change in personal circumstances are just some of the possible motives for this decision. Whatever the reason for the sale, there are things you can do to make the process go as smoothly as possible; here are a few tips to help you to achieve this.
Set the right price
One of the most difficult aspects of this procedure is setting the price of the land. Whilst it might be tempting to try to sell it for more than what you paid for it, this isn't necessarily the wisest option, particularly if you want a relatively quick sale; you might end up waiting years for a buyer if the site is not really worth the amount you are asking for.
There are several factors which need to be taken into account when making this decision, including what facilities are already available on site, what condition they are in as well as how much other plots in the local area have sold for during the past few months. If you're struggling with this, you might want to enlist the help of an estate agent, who can carry out a thorough appraisal of the site and help you to set a fair price.
Consider sub-dividing
If current market conditions are favourable and you own quite a large chunk of land, you may want to consider sub-dividing the site into smaller plots and selling each of these off individually. There are many benefits to this approach; sales of land sub-divisions tend to yield greater profits than land sold as a whole. Additionally, these smaller plots have greater marketability as they are more affordable than one single large plot, and you have the option of saving one of the land sub-divisions for yourself, should you wish build in that area at a later stage.
Expand your buyer base
Those who are re-selling a site on which they themselves had intended to build a private property sometimes make the mistake of only looking for buyers with similar aims. However, it's a good idea to check if any commercial developers in the local area would consider buying from you; if the land is relatively close to a town or city and large enough in size, they might be interested in building a commercial property on it. However, before approaching this type of buyer, make sure that you are armed with all of the information you might need to answer their questions about planning permission, existing facilities (such as water mains and gas pipes), as well as any restrictions imposed by the local authority.
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