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    • montymouse
    • By montymouse 17th Apr 18, 8:04 PM
    • 31Posts
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    montymouse
    Selling land - minimum fee
    • #1
    • 17th Apr 18, 8:04 PM
    Selling land - minimum fee 17th Apr 18 at 8:04 PM
    We have a garden which is separate from the house (this is a very old property, with an old layout). We are selling up, and think it would be best to sell the land/garden first. Over the years a number of people with adjoining land have expressed interest in this little parcel of land and said that they would like to buy it. We always refused, as, as long as we lived in the house, we wanted the garden to have as a garden. But now that we have decided to sell up, we want to put it on the market.

    We have had a chat with a local estate agent, a firm that has been recommended, and, because a parcel of land does not command the price that a house would, have been proposed a minimum fee of £1,200 + VAT.

    Trouble is, we are not entirely sure what the land will go for, so don't want to overspend on the fee, ie: the fee might turn out to be rather a large percentage of what we would get for the land.

    However, going through an estate agent would be the best way of selling, as it would make the neighbourhood aware that the property is on the market.

    Question: does £1,200 seem like a reasonable minimum fee to sell a garden? We expect that a number of people will be in competition to buy it, and I expect the land to sell for something between 20k and 40k. It is, however, hard to predict what it will go for.

    The land is a potential building plot. It is landlocked for vehicular access, (there is pedestrian access via a right of way), but at least two potential buyers would have vehicular access via their own properties. A third potential buyer is selling a nearby building plot with planning permission, and this is only separated from our plot by a section of a long garden.

    Purchase of the plot could boost the value of adjacent properties. It would also, in effect, end the right of way across two properties, including a potential purchaser's property.
Page 1
    • greatgimpo
    • By greatgimpo 17th Apr 18, 8:06 PM
    • 754 Posts
    • 1,074 Thanks
    greatgimpo
    • #2
    • 17th Apr 18, 8:06 PM
    • #2
    • 17th Apr 18, 8:06 PM
    Drop a note into every neighbour, asking if they're interested. If they are, maybe sealed bids WITHOUT an estate agent to muddy the waters.
    • the_r_sole
    • By the_r_sole 17th Apr 18, 8:14 PM
    • 2,456 Posts
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    the_r_sole
    • #3
    • 17th Apr 18, 8:14 PM
    • #3
    • 17th Apr 18, 8:14 PM
    Bear in mind that having a building plot adjacent might devalue your own house for some buyers - why not get planning permission yourself for a house and sell the land with the permission, you might get someone that wants to buy both the house and the plot to stop anyone else building there
    • montymouse
    • By montymouse 17th Apr 18, 8:32 PM
    • 31 Posts
    • 12 Thanks
    montymouse
    • #4
    • 17th Apr 18, 8:32 PM
    • #4
    • 17th Apr 18, 8:32 PM
    Drop a note into every neighbour, asking if they're interested. If they are, maybe sealed bids WITHOUT an estate agent to muddy the waters.
    Originally posted by greatgimpo
    That's an interesting idea, greatgimpo. Though we are not quite sure who owns the building plot that is just a garden away, so trying to drop leaflets to every potentially interested buyer might not work. Also, some of the potential buyers are landlords, and we are not sure where they live, which is why having it up on Rightmove might be a good idea.

    The idea of sealed bids is interesting - how would that work without an estate agent? Would they have to submit offers in writing to us?
    • montymouse
    • By montymouse 17th Apr 18, 8:36 PM
    • 31 Posts
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    montymouse
    • #5
    • 17th Apr 18, 8:36 PM
    • #5
    • 17th Apr 18, 8:36 PM
    Bear in mind that having a building plot adjacent might devalue your own house for some buyers - why not get planning permission yourself for a house and sell the land with the permission, you might get someone that wants to buy both the house and the plot to stop anyone else building there
    Originally posted by the_r_sole
    Thanks, the_r_sole, though actually the garden is not next to our own house at all. It is two gardens away.

    Actually, just to add, it may not just be wanted for building, but also for a car park for adjacent houses that currently have no parking space.

    It might take quite a while to get planning permission. I'm not sure that we would be able to do this with no vehicular access?
    • ProDave
    • By ProDave 17th Apr 18, 8:40 PM
    • 843 Posts
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    ProDave
    • #6
    • 17th Apr 18, 8:40 PM
    • #6
    • 17th Apr 18, 8:40 PM
    If it has potential for a building plot, then make sure it is priced right. Either get PP and price it as a plot, or sell it with an uplift clause if anyone gets PP in the future.

    Unless you are in outer Mongolia, the price it should sell for will make your £1200 fees look very reasonable.
    • greatcrested
    • By greatcrested 17th Apr 18, 8:46 PM
    • 40 Posts
    • 12 Thanks
    greatcrested
    • #7
    • 17th Apr 18, 8:46 PM
    • #7
    • 17th Apr 18, 8:46 PM
    ....... have been proposed a minimum fee of £1,200 + VAT.

    ......
    Originally posted by montymouse
    What on earth does a minimum fee mean......?
    • Davesnave
    • By Davesnave 17th Apr 18, 8:47 PM
    • 25,016 Posts
    • 92,523 Thanks
    Davesnave
    • #8
    • 17th Apr 18, 8:47 PM
    • #8
    • 17th Apr 18, 8:47 PM
    It might take quite a while to get planning permission. I'm not sure that we would be able to do this with no vehicular access?
    Originally posted by montymouse
    That would depend on your council's policies on such matters. They will realise it's likely the house will be inhabited by persons with vehicles, so if these cannot be parked on the property, they'll add to any parking difficulties which may already exist nearby.

    Building the property would also present problems without vehicular access. Small diggers need very remarkably little access space, but a place for skips and unloading/storing materials would be essential.
    'It's a terrible thing to wait until you're ready…..Generally speaking, now is as good a time as any.' Hugh Lawrie.
    • montymouse
    • By montymouse 17th Apr 18, 9:20 PM
    • 31 Posts
    • 12 Thanks
    montymouse
    • #9
    • 17th Apr 18, 9:20 PM
    • #9
    • 17th Apr 18, 9:20 PM
    If it has potential for a building plot, then make sure it is priced right. Either get PP and price it as a plot, or sell it with an uplift clause if anyone gets PP in the future.

    Unless you are in outer Mongolia, the price it should sell for will make your £1200 fees look very reasonable.
    Originally posted by ProDave
    The estate agent said that with PP it would fetch around 80k.

    What is an uplift clause?
    • montymouse
    • By montymouse 17th Apr 18, 9:22 PM
    • 31 Posts
    • 12 Thanks
    montymouse
    What on earth does a minimum fee mean......?
    Originally posted by greatcrested
    It's a set fee, or flat fee. Because 1% of what the land would fetch would not be an adequate fee, I presume.
    • AdrianC
    • By AdrianC 17th Apr 18, 9:24 PM
    • 17,358 Posts
    • 15,700 Thanks
    AdrianC
    ... have been proposed a minimum fee of £1,200 + VAT.
    by montymouse
    What on earth does a minimum fee mean......?
    Originally posted by greatcrested
    Oooh, wild stab in the dark... A %age, but with a floor.


    So let's say they say 1.5%, but with a £1,200 floor. Anything under £80k sale price will be the minimum £1,200. Anything over that will be 1.5%.
    • HampshireH
    • By HampshireH 17th Apr 18, 9:28 PM
    • 638 Posts
    • 644 Thanks
    HampshireH
    Uplift would mean that you get % should Planning Permission be permitted and therefore an increase in land value seems 25% is quite common. Worth a google
    • montymouse
    • By montymouse 17th Apr 18, 10:04 PM
    • 31 Posts
    • 12 Thanks
    montymouse
    That would depend on your council's policies on such matters. They will realise it's likely the house will be inhabited by persons with vehicles, so if these cannot be parked on the property, they'll add to any parking difficulties which may already exist nearby.

    Building the property would also present problems without vehicular access. Small diggers need very remarkably little access space, but a place for skips and unloading/storing materials would be essential.
    Originally posted by Davesnave
    I think that the people who potentially want to get PP for the plot are the people that own adjacent land with vehicular access, so if they acquired it, they would have vehicular access to the land and space for skips and so on.
    • montymouse
    • By montymouse 17th Apr 18, 10:07 PM
    • 31 Posts
    • 12 Thanks
    montymouse
    Oooh, wild stab in the dark... A %age, but with a floor.


    So let's say they say 1.5%, but with a £1,200 floor. Anything under £80k sale price will be the minimum £1,200. Anything over that will be 1.5%.
    Originally posted by AdrianC
    Sorry, my bad, I think the estate agent quote of £1,200 is the flat fee for the job of selling it. There is no percentage. For the house it's 1% + VAT. When I asked why it was a different pricing system for the land, he explained that it was a minimum fee.
    • montymouse
    • By montymouse 17th Apr 18, 10:09 PM
    • 31 Posts
    • 12 Thanks
    montymouse
    Uplift would mean that you get % should Planning Permission be permitted and therefore an increase in land value seems 25% is quite common. Worth a google
    Originally posted by HampshireH
    Yes, that's something to think about.
    • davemorton
    • By davemorton 17th Apr 18, 10:46 PM
    • 26,227 Posts
    • 318,459 Thanks
    davemorton
    If you go the self route with leaflets, also put a couple of large signs on the land.
    “Quis custodiet ipsos custodes?”
    Juvenal, The Sixteen Satires
    • montymouse
    • By montymouse 18th Apr 18, 5:58 PM
    • 31 Posts
    • 12 Thanks
    montymouse
    If you go the self route with leaflets, also put a couple of large signs on the land.
    Originally posted by davemorton
    Yes, we would definitely do that.

    The point does highlight the utility of an estate agent, as, obviously, they would take care of that.
    • eddddy
    • By eddddy 18th Apr 18, 6:09 PM
    • 6,301 Posts
    • 6,164 Thanks
    eddddy
    The land is a potential building plot. It is landlocked for vehicular access, (there is pedestrian access via a right of way), but at least two potential buyers would have vehicular access via their own properties.
    Originally posted by montymouse
    I would approach this very differently.

    If there are two properties which could provide access to your plot, I would aim to do a 'joint venture' with one of them.

    i.e. You sell it as a plot with access, and split the money between yourself and the person providing the access (in whatever percentages you agree).

    As there are two possible properties, you're in a stronger position. You go with whichever property owner that accepts a lower percentage pf the sale price.
    • montymouse
    • By montymouse 28th Apr 18, 8:33 PM
    • 31 Posts
    • 12 Thanks
    montymouse
    I would approach this very differently.

    If there are two properties which could provide access to your plot, I would aim to do a 'joint venture' with one of them.

    i.e. You sell it as a plot with access, and split the money between yourself and the person providing the access (in whatever percentages you agree).

    As there are two possible properties, you're in a stronger position. You go with whichever property owner that accepts a lower percentage pf the sale price.
    Originally posted by eddddy
    Thanks, eddddy. So is this the same as getting one of the two to offer vehicular access, getting this written into the title deeds, and then selling, giving them a cut of the proceeds?

    However, I think the potential buyers will be wanting to buy it to extend their own property, so would this be pertinent?
    • eddddy
    • By eddddy 28th Apr 18, 10:38 PM
    • 6,301 Posts
    • 6,164 Thanks
    eddddy
    Thanks, eddddy. So is this the same as getting one of the two to offer vehicular access, getting this written into the title deeds, and then selling, giving them a cut of the proceeds?
    Originally posted by montymouse
    Yes - they can either sell a right of way across their land, or sell a strip of their land which would provide access.

    However, I think the potential buyers will be wanting to buy it to extend their own property, so would this be pertinent?
    Originally posted by montymouse
    OK - so back to your original question. If there are only 2 or 3 neighbours/potential buyers, I don't really see why you need an estate agent. Just approach those 2 or 3 neighbours and invite them to make offers.
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