Are you looking for answers to questions like these: How to sell your piece of land, begin a development project to improve its value or seek consultation to get the best out of your property? Have you been told to ‘hire a land agent’.
But what does a land agent actually do? And how can you be sure to find a good one? These are just a number of questions that this blog post seeks to answer.
Continue reading to learn:
· What is a Land Agent?
· How do they differ from Land Buyers?
· What does a Land Agent do?
· Do you need to hire one?
· Do you need a commercial property agent to buy land?
· How to begin a land development project.
What is a land agent?
Land agents typically work with land owners to find the most valuable development opportunity achievable on a piece of land, before selling for the owner.
A land agent will specialise in this area, so compared to an estate agent, they will be experienced and typically skilled in selling different land types for various uses and sectors.
The job of a land agent is to sell or lease land on behalf of their client, but they may also be responsible for managing the land before, during, and prior to the sale or letting including any buildings or structures on it.
Experienced land agents are able to operate to the benefit of all parties within the transition of ownership for an area of land, improving on investments for both sellers and leaseholders by generating more favourable returns whilst finding ideal properties to tenants and land buyers.
A land agent may also be used in a more general sense to refer to a real estate agent who is particularly experienced in the sale of land and development properties.
What is the difference between a land agent and a land buyer?
In contrast to a Land Agent, who acts on behalf of the land owner to generate favourable returns, a Land Buyer acts on behalf of the purchaser to find the ideal land for investment or development that most closely suits the needs of their client. Land buyers often work for house builders or those that specialise in retirement living.
It is therefore important to differentiate between a land agent and a land buyer.
Land agents, such as ourselves, regularly provide advice tailored to the specific market, considering all potential options to extract the best value from the land during the subsequent sale of the property. On the other hand, a land buyer will seek to find an area of land that closely suits the needs (housing for instance) without considering other potential options, and seeks to secure the property at competitive rates for their employer.
A land agent will use their expertise to provide advice in relation to all the potential uses for a piece of land. Advising on potential planning constraints, market demand, and achievable values, the land agent should seek to generate the highest value possible from the land during the sale.
What does a land agent do?
A land agent provides valuable services and advice when owners seek to sell their land to generate the highest return possible.
When seeking the highest return on investment (ROI) for the owner, the agent should conduct a market audit to assess all the potential developments avenues, such as office, retail, industrial or residential development. They will use their knowledge to advise on market demand and potential sale price for each of these sectors.
They will also use their knowledge with regards to the local planning situation and likelihood of achieving planning for each option. Having planning consent on a site can add value, but conversely having the wrong or a poor planning consent can negatively the impact the value of the land, so it is important to consider this before rushing in to any planning application. A land agent can advise you on this.
After surveying the land and completing any value-maximising activities, the land agent will then market the land across a host of different channels to attract in the greatest number of interested parties and offers possible from the market.
They will also use their local knowledge to ensure the property gets in front of the right potential purchasers who are most active and most aggressive in the market.
Through online listings, traditional media, press releases, word of mouth and their expansive network of industry contacts, an experienced land agent should make the owner’s selling process quick, seamless and secure the best possible price for the owner.
Do you need to hire a land agent?
If you are the current owner of an area of land, a property that may be fit for redevelopment or you work on behalf of a company with property assets, you could certainly stand to benefit from a conversation with a team of land and property experts.
Consultation with an expert land agent is highly recommended for any business or private individual who seek, or see a potential future need, to sell their land or property assets. The land agent will be able to advise on the best time to sell, potential niche segments for the land to be marketed towards, and development opportunities for value maximisation.
A land agent may also be contacted for a consultation when a new piece of land is being bought. For example, an area of land may be significantly undervalued at its current sale price due to an opportunity to add value, and a land agent maybe able to advise on the acquisition of such land to greatly increase returns on the investment from the buyer.
Do I need a commercial property agent to buy land?
In short, no. The seller of the land should have an estate agent acting on their behalf, and will be able to complete the sale and due diligence of the process. However, your best interests may not be taken into account as their agent will be seeking to make the greatest returns from their land as possible. A land / property agent may be able to provide you with highly valuable market information that you simply may not be aware of.
If you are unable to dedicate a significant amount of time into properly completing the purchase of land or a development project, it would certainly be wise to hire a trusted and local commercial estate agent with experience in land investment and developments.
Your property agent will also be able to set your needs as a priority in the transaction, finding the ideal area of land for your goals and suggesting potential development or application opportunities to maximise the subsequent returns on your investment.
How to begin a land development project.
Undeveloped plots of land provide the opportunity for owners to greatly increase the value of their property asset through obtaining a valuable planning consent or bringing forward a development directly. Other forms of property disposal such as an option agreement or a joint venture arrangement may also be worth considering, depending on the circumstances.
When deciding to begin a land development project, we would recommend consulting a local land agent or commercial property expert to advise prior to redevelopment and, if possible, prior to purchase.
There are a number of crucial steps to follow when considering the redevelopment of a parcel or land you already own or when purchasing land with a view for redevelopment.
Determine the current market value of the land.
This will often require the help of a land and commercial property expert from your local area, as many factors will contribute towards the value of the land, namely: the location of the property, size, access, utilities, geographical features and surrounding infrastructure.
Determine what the land can be re-developed into.
Any developments or new builds on the area of land will be subject to planning permission. Good land agents will have detailed knowledge of the local plan which impacts planning in any given area and will be able to give some advice in terms of the likelihood of achieving planning for various uses.
Consider the potential value added to the property
Will the development and subsequent increase in value be significant enough to warrant the redevelopment project in the first place? An experienced agent will be well-versed in the value of land and additional property assets and can advise on if the increase in value will be a worthwhile investment in time and labour.
They will also have market knowledge in terms of demand for each type of property and potentially build costs also. All of these are important considerations when assessing if a development is viable.
Finally, for those beginning a land development project as their first venture into commercial property investment, have a read of our blog post outlining our complete guide to beginning your property investment journey in the UK.
To speak to a trusted land and commercial property agent in South Wales and the surrounding area, get in touch with the team at M4 Property Consultants.
01633 740 740 | [email protected]
