Plotting a plot.
February 22, 2010 5:16 AM Subscribe
We want to buy some land (in the UK) to build a house on but it's a minefield.
(The process, not the field itself obviously.)
We want to build a house and we've found some land for sale in Scotland which we really like the look of but we've never done anything like this before. We've spoken to the estate agent but the process isnt clear at all, and is littered with ambiguous terminology.
What, for example, does 'guide price' mean? Is this what the seller would like on a very good day, is this a reasonable value for the land or is this the starting point to bid from?
How much is land worth anyway? It's not like the housing market where there's always other property to compare.
Should we have the land surveyed similarly to before buying a house? What would this reveal? Can the contact be conditional to survey?
There are a number of other issues which would need to be resolved before any building could start; provision of power, drilling for water, negotiating access, all of which could scupper the deal, but all of which require a significant effort to resolve. Are these risks which a buyer has to take on?
We have a tight budget; whatever we have to spend on buying the land we cannot spend on building the house so we really want to spend as little as possible at this point. You are not my surveyor but any advice/experience would be much appreciated!
We want to build a house and we've found some land for sale in Scotland which we really like the look of but we've never done anything like this before. We've spoken to the estate agent but the process isnt clear at all, and is littered with ambiguous terminology.
What, for example, does 'guide price' mean? Is this what the seller would like on a very good day, is this a reasonable value for the land or is this the starting point to bid from?
How much is land worth anyway? It's not like the housing market where there's always other property to compare.
Should we have the land surveyed similarly to before buying a house? What would this reveal? Can the contact be conditional to survey?
There are a number of other issues which would need to be resolved before any building could start; provision of power, drilling for water, negotiating access, all of which could scupper the deal, but all of which require a significant effort to resolve. Are these risks which a buyer has to take on?
We have a tight budget; whatever we have to spend on buying the land we cannot spend on building the house so we really want to spend as little as possible at this point. You are not my surveyor but any advice/experience would be much appreciated!
Guide price is just that - a guide - you can offer more or less if you so choose. In Scotland properties are usually marketed on an "offers over" basis, but from what I understand land is offered on a guide price basis.
One of the singlemost important factors for land prices is whether there is planning permission and if so, what for.
At this link you'll find a guide to buying land and property in Scotland.
Before you commit to buy you absolutely should be conducting a survey. You'll need to establish any limitations on building on the site, for starters. Yes, you take on the risk of all the things like water, power and access. These are not mere trifles. Access can be expensive - google "ransom strips". I am not a surveyor, but I believe nobody is obliged to supply you with water. Running power to a property can be phenomenally expensive. Do your homework or risk things getting very expensive indeed.
posted by MuffinMan at 5:56 AM on February 22, 2010
One of the singlemost important factors for land prices is whether there is planning permission and if so, what for.
At this link you'll find a guide to buying land and property in Scotland.
Before you commit to buy you absolutely should be conducting a survey. You'll need to establish any limitations on building on the site, for starters. Yes, you take on the risk of all the things like water, power and access. These are not mere trifles. Access can be expensive - google "ransom strips". I am not a surveyor, but I believe nobody is obliged to supply you with water. Running power to a property can be phenomenally expensive. Do your homework or risk things getting very expensive indeed.
posted by MuffinMan at 5:56 AM on February 22, 2010
As to what land is actually worth, it's generally worth about 4x - 5x as much with planning permission than without. Without planning permission you can get land at a bargain price; the flipside is the very real risk that permission won't be granted when you apply for it. Obviously the seller knows this and will usually attempt to sell it with permission if they can.
posted by le morte de bea arthur at 6:12 AM on February 22, 2010
posted by le morte de bea arthur at 6:12 AM on February 22, 2010
Response by poster: Thanks for rapid responses.
I have bought property in Scotland before, but buying land seems to be a bit different.
We have been advised that we can buy on condition of getting full planning (outline is in place), I was wondering if conditions can be attached to other details? We would need to put in our own water supply and, apparently, a dowser has identified a site. Could our offer be conditional on this being accurate? Likewise with access.
posted by BadMiker at 6:19 AM on February 22, 2010
I have bought property in Scotland before, but buying land seems to be a bit different.
We have been advised that we can buy on condition of getting full planning (outline is in place), I was wondering if conditions can be attached to other details? We would need to put in our own water supply and, apparently, a dowser has identified a site. Could our offer be conditional on this being accurate? Likewise with access.
posted by BadMiker at 6:19 AM on February 22, 2010
I suspect everything is in principle negotiable BadMiker, but whether you'll get the seller to agree is another question!
posted by pharm at 12:14 PM on February 22, 2010
posted by pharm at 12:14 PM on February 22, 2010
This thread is closed to new comments.
Short version: estate agents advertise property (both land and housing AFAIA) with a 'guide price' which is set to give buyers a rough idea of the value, but deliberately set low (maybe even as much as 25-30% off the expected price) in order to entice interest. Buyers are expected to a) know this and b) know what the going rate is in order to gauge what the seller is actually expecting to get for the property. Naturally the discount varies over time with the state of the market just for extra buyer frustration. In the event of multiple buyers being interested, a date will be set for final offers to be made & the buyer has to bid blind.
You should absolutely have the property surveyed by a competant surveyor who specialises in surveying land rather than housing. There are any number of pitfalls for the unwary, especially if you are planning to build on the land after purchase. All of the risks you quote fall on the buyer when you buy land. If you can't get planning permission after you've bought the land, or can't negotiate access with adjoining landowners then it will be your problem. Caveat Emptor!
posted by pharm at 5:42 AM on February 22, 2010