Looking To Sell Your Development Potential Property?

Thinking of selling your house/ property and believe it to be a potential development site then continue reading.

When it comes to selling a house which is not a potential development site then reaching out to a local agent in the area in which the property is located is the best approach.

However, when selling a potential development site /property you got to speak with an agent who specialises in selling a development site.

You may ask why?

Well in most circumstances when selling a house which is not a potential development the way the agents assess the likely achievable price is based on the recent comparable sales.

When it comes to a development site this approach may not give the vendors an edge in getting the best possible price.

Broadly there are a couple of things which are required to be done to access the best possible price for a given development site.

  1. The best and highest use of the land
  2. Town planning feasibility
  3. Financial feasibility

1) Best and highest use of the land: For instance, let us say that the site you intend to sell is in the R3 zone (The Hills Council Sydney) then the possible developments allowed are Attached dwellings, Dual occupancies, Multi dwelling housing and Seniors housing etc.

Each of the possible development types mentioned above will have varying requirements in terms of site frontage, site depth, site area etc. Accessing what is possible will have a bearing on the price that can be achieved.

2) Town planning feasibility: For instance, let us say the site is in R3 (The Hills council) then one of the possible development is Multi dwelling housing (townhouses). Based on the site we got to assess is it possible to build 3 or 4 townhouses. The yield will also have a bearing on the pricing of the site.

3) Financial feasibility: When it comes to selling a property to mom and dad buyers/investors more focus would be given to staging or how well the house is presented to attract emotional buyers but when it comes to development sites it’s all about numbers.

This is where it becomes performing financial feasibility to understand the GRV (Gross realisation value), TDC (Total Development Cost) and POC (Profit on cost) which dictates the pricing of the site.

Normally with small developments like dual occupancies, Townhouses or small apartment complexes, the developers would be looking at achieving 18% to 22% POC.

I have the skills and tools to perform site assessment to the point where we can say that the site qualifies to be a potential development site before requiring to involve required professionals for confirmation.

Yes, I am not a town planner or a builder but a real estate agent who understands the property development space and the players involved.

If you’re in the market to sell a development potential site in Sydney I am more than happy to assist in getting the best possible price for your development site/property by performing the above assessments and getting you the best possible price.

You may please provide the property details for me to call and discuss further.

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