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Besy way to sell - Informal tender, auction or?

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Hi

I am soon to have full planning permission granted for a large detached replacement dwelling (6300 sq foot)

I would think if a developer buys they will reduce the building to 4000 sq foot which would maximize the profit; expected selling price for completed high spec house would be 1.8 to 2m

I applied for planning for the larger house build to hopefully attract a private buyer.
The plot (just short of 1/2 acre) is considered very desirable with protected woodland at the rear.
Multi build is out of the question because of a local authority (Trafford) moratorium.

As soon as we get planning through we want to sell and trade down.

We are mortgage free and have a bit of savings which could open up other options such as sharing development profits will a builder.

I have spoken to a few local estate agents and the one I prefer is suggesting informal tender.

I have friends that think that auction may be the way to go,

I read this statement on house.co.uk which is tempting me towards an auction..
Properties that are in high demand; in the heat of an auction, the price paid for such properties can exceed their estimated market value substantially. If you have ever seen the bidding wars ensuing over art at auctions, imagine what your East London penthouse might sell for!

I am unsure of the best way to maximize the profit from this so any suggestions would be very much appreciated.

Thanks
Ivavoucher.

Comments

  • david29dpo
    david29dpo Posts: 3,927 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Combo Breaker
    if you want maximize your profit, why do you want to minimize a developers profit by not wanting a smaller house built?
  • ivavoucher
    ivavoucher Posts: 529 Forumite
    Part of the Furniture 100 Posts
    david29dpo wrote: »
    if you want maximize your profit, why do you want to minimize a developers profit by not wanting a smaller house built?

    I do not want to minimize anyone’s profit, I say a builder would most likely build a smaller house because the plot will top out at 2m and a 4000 sq foot home would achieve this sort of price. So why would a builder pay the extra it costs to build a 6300 sq foot home.

    I do not care what size of house is built.

    A private buyer might build the bigger house because they would not necessarily be looking for an instant 20% profit.

    Having planning in place for the larger home seemed like a good idea to appeal to both markets.
  • Doozergirl
    Doozergirl Posts: 34,075 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    I'd go with informal tender probably. I think with auction you will be alienating many potential private buyers. We're talking about a significant amount of money to be produced within 28 days. I'm sure the people willing to pay most money would indeed be someone looking for their own home.

    I'd set a sensible guide price and let things take their course.
    Everything that is supposed to be in heaven is already here on earth.
  • Phil_rich
    Phil_rich Posts: 270 Forumite
    Why not build it yourself then sell it off if you want to maximise your profit?
    --- Fat club weight loss -- Started 10th April 2015
    Update: 28.4.15 - 8lbs
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