Selling a plot of undeveloped land is possible
There are three main ways that you can sell a plot of land: selling it without any planning permission, selling it on a “subject to planning” basis, and selling it with planning permission.
Selling a plot of land without planning permission – This is the simplest approach because you can simply list your land for sale and try to seek buyers without having to take additional steps. But it will make the land less valuable because if a buyer is looking to develop properties on your land yet there is no planning permission in place, there’s no guarantee they’ll be able to get it in the future.
Selling a plot of land “subject to planning” – Under this method of selling you would engage with a prospective buyer but the final sale would be conditional on the buyer securing planning permission for the land. This is a safety net for the buyer because if they fail to get the necessary permission then they can walk away from the purchase because of its conditional nature.
Selling a plot of land with planning permission – This approach is the most attractive to buyers because it shows them that there’s permission to build properties on the land. The simplest type of permission to get is what’s known as an outline permission that says property can be constructed on the plot but further specifics will have to be resolved in the future.
It’s important that you can prove ownership of your plot of land through legal documentation. This might be more complicated if your land is unregistered – meaning the details of the ownership are not kept as official records with the HM Land Registry, which keeps records of property sales and rights for England and Wales dating back many years.
Thankfully it’s still possible to sell your plot of land even without the right registration, if you are able to produce the title deeds to prove that you own it. It will require some time and effort, but there are several options available for getting these necessary documents to proceed to sale.
Some issues that might either increase or decrease the value of your land
There are a number of factors that could either boost or decrease the value of your plot of land beyond the key issue of whether you have planning permission or not.
Physical qualities – If your plot of land has very good access to necessary systems like water or sewer lines then it will be more attractive to buyers who want to develop properties on it. Additional physical qualities like the area’s climate can also play a role in the value of your plot.
Location – Buyers might be willing to pay more money for plots of land that are located in particularly desirable areas for property development. And in contrast, if your land is situated in a remote area that is not very attractive to developers then you might have to accept a somewhat lower sale price for it.
Transport connections – Another vital factor is whether your land has good links to transportation options, such as local bus or train routes. If the buyer is looking to build houses or flats on your land then they will consider its proximity to transport connections, because the better the connections the higher the sale price you might be able to get.
Local services and amenities – Separate from transport connections, buyers will also look to see what the other services and amenities in the area are like. If your land is located in an area that has great shopping, schools, and other services then it could attract a higher sale price.
Top three tips for quickly selling your plot of land
No matter the size, shape, location or condition of your plot of land, property is always in such demand throughout the UK that you should be able to find a buyer for it. But depending on how you approach the sale, the actions that you take could accidentally result in you receiving less profit for the land than you would otherwise deserve – and this is entirely preventable.
Keep reading to discover the top three tips for the best way to sell a plot of land, which should ensure that you attract as much interest as possible, sell fast, and at a price that’s right for you.
Secure planning permission for the land
As outlined in greater detail elsewhere in this guide, making sure you have planning permission on your plot of land is one of the best ways to make a sale more likely. For home developers, already having planning permission in place clears a major legal hurdle for whatever house or flat project they would like to build on the land, and that significantly increases the odds that they might make an offer to buy the plot.
Price the plot of land within a reasonable range
You don’t want to price your plot of land too low, because then you’re likely to lose money on the sale. But price it too high and nobody will want to buy it. Ask estate agents and auctioneers for quotes, and compare your land to similar plots listed on property sales websites like Land Market, in order to find a price that is suitable for the market but can still help you make a profit.
Ensure that the listing makes the plot of land enticing
If you choose to sell the land through an estate agent or auctioneer, they will create a listing to advertise the plot for sale that includes a detailed description of the land, including photographs of it. You must ensure that the listing promotes the plot in the best way possible, because a badly written listing with poorly taken photographs could be enough to deter some buyers from having any interest in buying the land.
Top options for owners seeking to sell a plot of land
When you have decided to sell your plot of land, the next important decision is figuring out which method of selling you would like to use. Your choices usually are between asking an estate agent to sell the plot of land, trying to sell with a property auction, or contacting a fast property buyer like LDN Properties that has experience buying land as well as homes, regardless of their type, condition, or size.
Each option will have its potential advantages and disadvantages depending on the specific needs of your situation. Below you’ll find a comprehensive explanation of the three methods of selling, as well as highlights of the possible pros and cons that you could experience.
But regardless of which option you choose, most property and landowners would agree that they would like to sell as quickly as possible and to keep as much of the sale profit as they can. Keep reading to see which of the various choices best matches the sale of your plot of land.
Selling a plot of land using an estate agent
Using an estate agent to sell a plot of land can be a good way to reduce your stress, because they will be responsible for creating and advertising a listing for the land that describes its dimensions, any legal restrictions or planning permission, and other facts alongside photographs of the land. The estate agent will advertise this listing online, in local newspapers, in their offices and elsewhere in a bid to generate interest from prospective buyers.
Estate agents will also typically host viewings, where people who might want to buy the land get to visit it if they wish. Unlike home viewings that can often be disruptive to property owners because they might be inconvenient and time-consuming, land viewings should not affect you.
A complication that you might encounter when trying to sell a plot of land this way is that a number of estate agents might not have made such a sale in the past, and they might not know how to market your plot or land to generate interest from buyers. If that’s the case, you could be waiting for many months or even more than a year before you find a buyer for the land. For owners whose main aim is selling the land as quickly as possible, this can be a major con.
And remember that you will also have to pay an estate agent fees for their efforts in finding a buyer for your plot of land. Be sure to ask your estate agent how much commission they will charge, so that you can budget to subtract those fees from the net final sale profit you will make from the sale.
Also, beware that some estate agents might quote you an elevated quote for how much they think they can sell your plot of land. They’re doing this because they want your business and commission, even though they know the land will only sell at a lower price. The best way to avoid being tricked into this kind of situation is to ask for quotes from as many estate agents as possible in your area, and to use the average of those prices as a vital piece of information.
Selling a plot of land using a property auction
Another method that owners sometimes use for selling a plot of land is using a property auctioneer. These work on a commission basis; they advertise the land for sale and take care of hosting the auction, but charge fees for that work. You’ll have to budget to subtract those fees from the total net profit that you can expect to make from the sale. However, in certain situations you might be able to force the winning high bidder who buys your land to pay those fees.
Auctions can be quicker than trying to sell via an estate agent, but you might still experience a potential delay of a few weeks between the date on which you first list the plot of land for sale and when the actual auction takes place. Even if your plot of land does sell, there could also be a delay of a few weeks until the mandatory legal paperwork for the sale is completed. But note that many auctioneers require that buyers finalise their purchases within 28 days of a sale.
When you list a plot of land for sale at an auction, the auctioneer will ask you to set a reserve opening sale price. This is the lowest acceptable price at which you want your plot of land to sell. It’s important to remember that if you only receive one bid during the auction at that price, it’s considered a legally binding agreement to purchase your land that you and the buyer can enforce.
One potential drawback of using an auctioneer is that they might not be experienced in selling plots of land, which could make it harder to find buyers. Some auctioneers only sell residential houses and flats, and others specialise in selling commercial properties. When you are asking around auction houses about selling your plot of land, inquire whether they have successfully sold plots of land in the past and how they intend to sell your land. If they don’t have any experience with such sales, it’s unlikely they will understand the best way to advertise your plot of land, and you could risk receiving zero bids when the auction eventually happens.
Selling a plot of land using a fast property buyer
Of the three selling options outlined in this guide, fast property buyers are perhaps can be the most experienced at buying plots of land. That’s because they are open to purchasing almost any type of property, whether it’s open land or freehold or leasehold houses or flats. You’ll find that most quick buyers have this kind of experience, which removes the stress of worrying whether you can find an auctioneer or estate agent who might know how to best sell a plot of land.
Most fast property buying companies aim to complete the purchase of a home or land within a few short weeks, which is typically much faster than using an estate agent or auctioneer. This can be ideal for those owners whose priority is selling their land as quickly as possible.
You also won’t have to pay fees to reputable fast buyers; for example LDN Properties don’t charge owners commission when buying houses, flats or land because it’s always believed that the owners should get to receive all of their profit from the sale. By contrast, you’ll have to pay estate agents and auctioneers commission that will be deducted from your total sale profit.
And you can also get additional peace of mind when selling via this method thanks to The Property Ombudsman (TPO). This is an independent entity that issues regulations which aim to guard home and landowners against fraud in the quick buying sector. All registered TPO members, such as LDN Properties, must adhere to those rules.
It’s easy to check whether a company is registered with TPO, simply visit the organisation’s website, click on the “Find a member” tab on the main page, and enter a fast buyer’s name. If they’re registered with TPO their membership details will appear, and you can be satisfied that they follow the relevant rules. Be wary of any company that can’t prove it’s a TPO member, because it might be fraudulent and you should think carefully before selling your plot of land to them.
Selling a plot of land: typical questions and answers
If you’re trying to sell your plot of land, you probably have some pressing questions about the process. Here are just a few of the typical things that people ask us:
Yes you can, there are no restrictions legal or otherwise on selling your plot of land if it doesn’t have planning permission in place. This can be a good option if you need to sell in a hurry, but your land will be less valuable than a plot with planning permission.
As explained above, you don’t need to, but it can be a wiser financial move. Having planning permission for your land makes it far more attractive to buyers, and therefore you’ll probably get a much higher sale price for your plot of land if you have it.
No, there are number of other factors that can either enhance or decrease the value of your plot of land. These can include the location of the property, the nearby amenities such as schools and shopping, and more.
No. Some estate agents only know how to sell freehold and leasehold houses and flats, and have no experience selling plots of land. If you try to use such an estate agent to sell your plot of land, they might struggle to do and fail to find you a buyer. If you’re thinking of using an estate agent, confirm with them that they have successfully sold plots of land in the past.
The reputable fast property buyers, such as LDN Properties, never charge any fees for buying plots of land, houses, flats or another other property. That means the owner gets to receive the maximum possible profit when selling. Be wary of any quick property buyer that charges owners fees, because there’s a strong possibility that it might be a scam business.
