There are many ways you can increase the potential profit of your land before you sell. Keeping the land regularly maintained is one popular method. Another way of increasing your profits is by selling your land with planning permission.
Why Selling Land With Planning Permission Can Significantly Benefit Your Profit
Generally, having land for sale that already has planning permission can increase the overall value of the land. Having planning permission already available means potential buyers can have more flexibility on what they can do.
This is also the case when you sell a house (or building) that already has planning permission to do further extensions. Of course, the buyer may be restricted on what they can build. They will have to follow the terms and conditions of the planning agreement but having planning permission means potential buyers have more options on what they can do with the land.
Having more options makes land more valuable too.
Plots of land located near residential areas that have planning permission to build more houses is exceedingly valuable in the eyes of developers. Applying for planning permission can be a time consuming task, but if a buyer can buy land that already has planning that is suitable for their needs, they can start building straightaway. With homeowners looking for the perfect land to build their home, if planning permission is already available you are in a perfect position to ask for a higher price since you’ve already done the extra work.
How Much Value Does Planning Permission Add?
It’s near enough impossible to give you an estimated quote of how much your land would be worth with planning permission, without surveying your land and assessing what it has to offer. Land agents tend to claim that selling land with planning permission can add an extra 10% profit. However, in some cases, planning permission can add so much more.
You have to consider what the planning permission offers to potential buyers. Residential building opportunities on a perfectly located land site can be a very profitable investment while commercial developers are always looking for land sites in busy urban areas.
When determining the additional value of your planning permission, you need to consider how much value the proposed building would bring to the land. For example, if you have a plot of land that proposes to build three new houses, that can bring a large and healthy profit.
Should I Apply For Planning Permission Before I Sell My Land?
In most cases, planning permission can create more profit. If your land currently does not have any planning permission then it’s worthwhile to consider the option of getting some.
However, before you start completing any application forms, you need to assess your land carefully and answer an important question, “What does my land have to offer?”
Is the land suitable for building? If yes, what could be built? Is the land suitable for residential or commercial buildings?
When considering these questions, you have to be realistic and think about the potential buyers looking at the land. Commercial developers will unlikely want to build on land in the middle of the countryside, while a homeowner looking to build their family home may be interested. Think about your potential market and what they are looking for.
If looking to attract commercial buyers, for example, you can add value by demonstrating some aspects of early market research: where are the nearest motorway links and what’s access like for HGVs? How many people live within an hour’s commute to the site? What types of businesses are located nearby, say within 5, 10 or 15 miles?
If you’re struggling to decide whether your land site would benefit from having planning permission, consider getting advice from a land agent. With their experience working in the land industry, they will be able to determine which options are best for you and save you the expense of applying for planning if it’s unsuitable.
Want To Make Money From Buying Land? We've Got The Perfect Guide For That...
Getting planning permission for your land is a great way to increase the value. However there are many ways you can determine whether land will provide a profitable return before you have even bought it. Our free downloadable guide highlights all the steps you should follow when buying land to help you make money.