Three ways to find land for development in a saturated market

April 30 2022

Three ways to find land for development in a saturated market

Finding land which is suitable for development is difficult.

Most of it is owned by the council or by people who have inherited it and are unsure what to do. This, mixed with an increase of self-builders and construction companies, has led to a saturated market where land is scarce.

When people do eventually decide to sell, they go to estate agents. The problem is that many estate agents don’t know how to correctly value land. This leads to plots coming onto the market that are massively overpriced. Before a developer can even put foundations in the ground, they must negotiate tens’, if not hundreds, of thousands of pounds off the asking price.

In this article, we’re going to give you some of the quickest and easiest ways to step past the competition and find land for a price that makes your developments profitable.

1. Estate Agents

Although estate agents have a habit of overvaluing land, they are still the easiest source for finding opportunities. If you build relationships with them and make yourself known to the valuers there, you’ll soon start to see sites being passed your way before they reach the open market. However, this takes time as relationships are not formed overnight. 

The trick with this method is to treat it like a numbers game. Keep an eye on new listings that are coming to the market, but also keep a list of ones that have been there for a while. If you make an offer and get rejected, then keep an eye on that piece of land and offer again in a few months. 50% of commercial deals fall through so, if a previously sold piece of land comes back to the market, then it is likely the vendor is motivated.

2. Finding land off-market with letters

As we mentioned at the start of this article, many people own land and are unsure what to do with it. Whilst they try to come to a decision, the land sits there doing nothing. Eventually, the owners forget or just decide to deal with it in a few months/years. In these instances, receiving a letter that offers to buy the land from them gives the vendor food for thought. It prompts action.

So, how do you do this? Firstly, look on Google maps for land which is suitable for development. This can either be brownfield land or gaps within already developed areas. When you have identified a plot, look it up on Land Registry. For a small fee, you can gather the name and address of the landowner. Once you have this, you can send them a letter offering to purchase the site.

3. Auction

Auctioneers understand that sellers are looking for a quick sale and buyers are looking for a fair price. This means that prices at auction tend to be fairer and leave you with more room to make a healthy profit. Plus, if the auction rises above a price you can afford, you can just stop bidding and nothing is lost. 

Although auctions might lure you in with quick sales and bargain prices, it is important that you know what you’re getting yourself into when signing up. Most auction houses require an upfront reservation fee of 10%. This fee is non-refundable if you are the successful bidder. So, if after the auction you can’t secure finance or you realise that the deal doesn’t stack, it is too late to back out.

Take the easy road

Finding land is hard if you are new to developing. Thankfully, due to our credibility and extensive experience, we are regularly passed opportunities. Estate agents ring us before land comes to market. Auction houses call us when something suitable comes to them. Landowners contact us directly for free valuations.

You do not need to go through the effort of countless rejected offers and months of searching for deals. Instead, invest in our developments and fast track your progress. We are credible, we are established, and we are experienced. You can discover more about this experience by clicking here. Alternatively, contact us today to discover more about our investment opportunities by clicking here.