Price of building land

[Ray1]

A relative has been approached by a well known developer interested in buying a piece of land from her, the field is just under 1 acre. This developer has built a housing estate upto her boundary 5 years ago and left a blocked off road from the estate leading into her field should she sell at some point. Area for area we thinks they will get 7 £275000 houses on it like what he has already built or 12 £200000 houses that are also on the estate. She has said to them she will listen to what ever they have to say and will think about it when an offer arrives. As only this builder will be submitting an offer she will have no idea if its good or bad. Does anyone have and idea???

[Big J]

It's traditionally 1/3 cost of land, 1/3 cost of construction and 1/3 profit for developers.

 

This would mean around £850k, which I'm not saying is fair, but they would probably pay it. Land is too expensive in this country.

[Warren Stirling]

Round here its about 1m an acre.

 

W

[Johny Walker]

It's traditionally 1/3 cost of land, 1/3 cost of construction and 1/3 profit for developers.

 

This would mean around £850k, which I'm not saying is fair, but they would probably pay it. Land is too expensive in this country.

 

that went out the window long ago,some devlopers are down to 15% some @ 25% tops ,cost of buildimng land has dropped about 40% ,not good for those selling :thumbdown:hopefully it will creep bk up

[mendiplogs]

A relative has been approached by a well known developer interested in buying a piece of land from her, the field is just under 1 acre. This developer has built a housing estate upto her boundary 5 years ago and left a blocked off road from the estate leading into her field should she sell at some point. Area for area we thinks they will get 7 £275000 houses on it like what he has already built or 12 £200000 houses that are also on the estate. She has said to them she will listen to what ever they have to say and will think about it when an offer arrives. As only this builder will be submitting an offer she will have no idea if its good or bad. Does anyone have and idea???

 

HI RAY if that was bath then millions of £££££££££ you need go and see some one who is in that line of work just ask the builder for more you own it mate put a offer back to them jon

[gensetsteve]

I have just been through all this. I have someone who represented me I can give u his no. Developers are slightly less honourable than drug dealers and will screw you sideways given the chance. We live in a wealthy area the land should be worth at least 600k but most got 100k per acre. good luck with what ever u decide to do be careful and watch your back.

[nepia]

That's a bit harsh on drug dealers mate!

[woodworm]

You are in control of the situation, not the developer. Tell them at least £120k per plot. Either they want it or they dont?

[openspaceman]

You are in control of the situation, not the developer. Tell them at least £120k per plot. Either they want it or they dont?

 

Not really in control, the developer has the ransom strip for access and this generally is worth 30% of the uplift in value of the land from agricultural to building. The crux is is there another access.

[Shane]

A friend of mine owns a small plot which was surrounded by a horseshoe shape plot.

The builders bought the surrounding plot and offered my friend a 'low' price for his house/garden to make a good rectangular develoopment.

 

My friend turned down the initial offer - so they just built right up to his boundary on three sides (totally different style of house) and now he's stuffed, bu@@er all light, windows in all directions, he'll never get a decent price for his gaff now.

 

Can't believe planning guys allowed it. For those who know Worthing his is the old house surrounded by the 'giant beech huts' where Worthing Yacht club used to be.