How Much is My Property Worth to a Developer

What is my country worth to a developer?

November 29, 2019 11:28 am

How much is my land worth?

“How much do developers pay for land?” and “Will a builder purchase my home?” As developers, nosotros are frequently asked these questions by homeowners who wish to sell either their entire plot or a portion of it.

Of course, when you are considering selling your house or country, you demand to know how much y’all tin can wait to get for it.

As Latin author, Publilius Syrus states, “Everything is worth what its purchaser will pay for it.” However, this may vary considerably. What an estate agent will tell you is ‘market value’ for your house as a residence may be very dissimilar from the amount that a developer is willing to pay for your property or plot.

What a homebuyer will pay for a run-downward firm that requires significant and costly renovation is very different from what a developer volition pay for the same property. This is because the homebuyer is looking for a house to move into right now. The developer, on the other manus, can knock downwardly the old house, build 4 new flats (for example) and sell them on at a turn a profit.

And so if you’re thinking of selling your house or country, it’southward worth getting information technology valued by both an manor amanuensis and a developer before making a decision.

How does a developer value your land?

We will appraise your plot and give you a figure based upon the following criteria.

1. What tin can nosotros build on your plot?
   
   This volition depend upon many factors, including the size, shape, slope and location of your plot. Plus the type (apartments or houses) and size of development the local council is likely to grant planning permission for.
2. How much volition information technology be worth in one case the evolution is complete?
   
   i.e. how much are we likely to be able to sell all the finished units for.
3. What will this cost to build?
   This will include sabotage costs, construction materials and labour, skilled trades and other overheads.
4. Will we have to secure finance in gild to buy your plot?
   If then, we will besides need to consider the interest that we will have to pay on the loan.
5. What is our profit margin?
   This tin can be calculated by dividing gross profit by revenue. i.e. how much value volition we have added? Ultimately, each developer has a minimum turn a profit margin they must attach to, partly to ensure the projects they take on are worth their own time and effort, and partly to ensure that their lender’s financing criteria are met.

How do I sell my property to a developer?

If you’re thinking of selling your house or state, y’all might be interested in the following:

1. Our vendor FAQs
2. What are the advantages of selling direct to a programmer?
3. Click here to contact us about a development opportunity

Click here to find out how property development works.