How to sell land

There are 4 main ways to dispose of land and this article sets out the pros and cos of each method whether you are buying or selling.

This is by far the most common form of transaction in England. Anyone who has bought or sold a house will be familiar with this. In this method, a site is offered to the market with a guide price; however, the purchaser will not be bound by this and is free to offer any sum they wish below or above the guide price. These offers are on a ‘subject to contract’ basis which means that they are not binding until a contract has been completed.

Quick to place the property on the market. The price can be negotiated.

Until the contracts are exchanged, either side can withdraw from the transaction. Legal process can be longer as searches and due diligence is undertaken after the offer is accepted.

This is more common with the sale of land than residential properties. The agent typically will put the property on the market, but will have typically created a package of due diligence in advance, which might include details of utility connections, planning information and information on the title. The marketing would be for a set period, following which a tender date is set by the agent. All offers are submitted at the same time. This has benefits for more complicated transactions, as all parties have the same information upon which to base their tender offers.

It is classed as informal as it is also ‘subject to contract’ and is therefore non-binding. If the tenders do not reach the expected level, then they do not need to be accepted.

Sometimes offers are submitted in a pre-defined format to make their analysis easier.

This process is not used very often but can be useful. This is the same as an informal tender however the contract is included in the package and it can be binding if accepted. This does not allow much flexibility and is used infrequently now predominantly for public sector disposals.

Auctions can be a very good choice for disposing of certain types of land and buildings, they are often used where assets are distressed in some way as they offer a very quick disposal route. There are various auction houses, some are now entirely on-line.

Under an auction contract, the drop of the hammer is the effective exchange of contracts, and the purchaser is duty-bound to complete within a specified time period, usually less than 1 month from the auction date.

Do you need help with selling your land? The Beresfords Group offers a range of services that can help you sell your land quickly and for the right price. With over 56 years of expertise, you can rest assured you’ll be in safe and knowledgeable hands at every step. Contact us for more information.