If you own a piece of land, you may sell a part of it. It can be profitable, especially if the location is right. Selling land can be a good decision, but only if you consider all the details thoroughly first.
Some important things to consider are:
- Do you have the legal right to sell the land?
- Who is buying your land?
- Do your neighbors want to sell a piece of land?
What Will Happen to the Value of Your Property?
Whether you want to sell a part of your garden or a large agricultural land, make sure to do thorough research first. Consult with a real estate attorney to ensure your interests are protected and that the transaction is as smooth as possible.
Who Are You Selling Your Land To?
One of the biggest problems people face while selling their land is knowing who the ideal buyer for the land is and how to target the right market. Land buyers are always looking for development opportunities inland, and you should know what type of developers might have an interest in your land. What kind of buyer you want to attract depends on the type of land you are selling.
- Does your buyer want to buy a plot or a house?
- Is your buyer a developer or a builder?
- Is your buyer looking for finished lots or parcels of suburban land?
You should understand what the plot of land you are selling offers and which type of buyers it will attract.
Why are You Selling Part of Your Land?
Nowadays, housing is very much in demand, and developers are searching for places to develop. You may want to sell a part of your garden you can’t take care of or just extra space that you don’t need. In that case, you may want to sell a part of it. You can use this money elsewhere or just pay the mortgage if you have one.
But you must have to consider how selling a part of your land will affect your life afterward, both in the long and short term. Some of the main factors you need to consider are:
- Will you have to live next door to a building site, and for how long?
- How will the additional development affect your land?
- How will you be affected in your own home by the development?
If you and your neighbor have a large garden, then you can group your shares for sale if the neighbor is willing. This is known as land assembly. This can be more profitable than selling individually because of the wide range of development opportunities available for whoever buys the land.
Note that if you have a mortgage on your property, you will need the permission of the lender to sell part of the land.
Why Get Planning Permission?
Your best choice will be to get planning permission before selling the land. This will enable you to control what is built on the land after you sell it. You can tell your real estate attorney to include an obligation on the buyer so that you must approve any changes in planning permission.
Another benefit of planning permission is that the value of the land will increase because the buyer is aware that the plans are already in place, and the land is a good investment for the planned purpose.
But there are some disadvantages of planning permission. It will cost you more, and it may take longer to sell the land as you wait for the zoning decision. Also, you will need to amend the plans to satisfy the buyer and get them agreed to buy the land.
If your land is sold as bare land, then the cost of planning permission will be on the buyer. You may miss the opportunity for the higher value of land, but you will not have to spend the time and money to get planning permission.
Your real estate attorney can advise you if you should include covenants or not. This means if a buyer takes planning permission, he will have to pay you extra money.
Always Get Professional Advice
You will always need property professionals whenever you want to sell your land. You may need to discuss with your local authorities about planning permission. Some of the professionals you must work with are:
- For planning permission, you will always need to discuss with local authorities.
- For information on maximizing your land value and market the land, you will need land or a real estate agent.
- For advice on taxes payable on land sales, you will need an accountant.
- To complete the legal part of the property sale, you will need an attorney who specializes in real estate.
Any kind of agreement in selling or buying of land must be made on paper in writing. Verbal agreements aren’t viable. The agreement will contain everything you and the buyer have agreed to through your attorneys.