If you’ve found yourself wondering how to sell a piece of land, you may be thinking about how you best go about doing it. There are big differences between selling land and selling your home, so you will need to do your research. We have put together a very basic guide on things to consider, and also what you need to consider from a legal standpoint.
Below we take a look at the best practices to consider when you’re looking at how to sell a piece of land.
Pricing Your Land
As with anything you are selling you need to know how much you are going to sell it for. Very similar to a house, you are going to need to get a valuation completed. The valuation will take into account key factors that will affect the price you are able to demand. This we will discuss later on during this guide.
The cost of your land will also be dictated by whether or not you have been able to obtain planning permission. A land without planning permission demands a lower price than land with full planning approval.
Getting a valuation is very simple. The land registry releases a report year on year which has researched the average selling price for certain sizes of land. It is, however, recommended to get a professional valuation done as this will help you get a more accurate valuation.
Obtaining Planning Consent
Planning permission is going to be key to demanding more money for your land. Once the permission has been granted it will turn your land that you want to sell into a very much a viable business opportunity. To begin this process you must submit a formal application to the local authority.
Many people believe that their applications take a long time to be considered. Yes, this is true, however, increasing pressures on local authorities mean the process usually takes around six to eight weeks. Do make sure, however, that the form is completed correctly. This is why discussions with architects, potential new owners and also planners need to have taken place first.
If you feel the planning is going to be rejected, then withdraw the application. Firstly for cost reasons as it can become expensive if an application is not successful. But secondly, it can make it increasingly harder in the long run to obtain permission. This is due to a red mark effectively being placed against the land.
Factors that Affect the Price when Selling a Piece of Land
When selling land, as with selling a house, there are many factors unfortunately out of your control which will affect the price you are able to demand. Some of the factors below to consider are.
As with all homes in the UK, the price of land is affected heavily by the area in which it sits within. If it’s a sought after location, or the prices of other plots are notoriously high, then we will be able to demand a higher price. Equally, if the location is not as sought after, then the value of your land will reflect that.
It can be the most rural place, or in a very convenient area but transport links are going to be crucial. If you have a housing developer who wants to buy your land, he will already have considered the locality of the land. Outside of residential, if the land is going to be for commercial use, buyers will consider how easy it can be for workers to access.
Climate and even the quality of the location will have an impact on price. You do not expect hot temperatures all year round in the UK, but if it is coastal it may be harder to sell due to naturally harsher winds, or more rainfall.
Referring back to residential buyers, they will want to see how local things are to the land itself. Be that schools, hospitals, transport links, shops and the pharmacy. All of which will be considered by the people who buy homes, so potential buyers will be thinking ahead. That list is also relevant to commercial buyers who need to cater to their, or someone else’s workforce.
The current economy will have a large impact on the value of your land. The economy affects investment into the country, house prices, new housing demand etc, and this can all have an impact on land values.
If you are unable to obtain planning permission this can impact the cost of the land. Buyers will want to know that they are able to build upon the land, and ultimately make money from their investment. Being transparent about the process you have undertaken, and having all the relevant documents is a must when speaking to potential buyers.
You can contact your local council to apply for planning permission.
How To Sell The Piece of Land
Now you have had the land valued, the planning permission has been agreed it is now time to start marketing the land. Potentially the easiest part of the whole process. Knowing who your market is will help to identify potential buyers. Whether it be residential or commercial you can start to approach:-
- Land Investors
- Property Developers
This is a very basic list, but these types of people are going to be your target market.
The increase in technology has also made selling land a lot smoother as well. Using online applications, websites and various online estate agents only aid in widening the net for potential buyers. Do not forget the local area. As advertising locally can sometimes be where you find that person. The locality is great for people who need to invest time as they already know the area.
Learning how to sell a piece of land can be daunting. You might say that selling a piece of land is very similar to selling a home. However, remember that getting planning permission is what will drive the value up.
Equally, do not ignore the other factors such as demand for housing in the local area, as these will ultimately affect the overall price. Research the local area, ensure you know the market price and you will not go far wrong.
If you have a plot of land for sale then contact Norwich Home Buyers today for your fast offer. We buy land with or without planning permission and can help in any situation.