When setting out to find a site you will be up against some fierce competition such as other self-builders, full-time land finders, small builders, and all the vested interests of the development industry.
Those new to site finding tend to focus on opportunities that are already on the market. They will put a lot of time and effort into contacting estate agents and on the internet souring from websites such as Rightmove.
The truth is that there are three markets out there:
· On the market
· The Black Book market
· Off market
All sites will start “off-market”, with many landowners opting to use agents of one sort or another. These agents will have a “little black book” of favoured clients and purchasers, so the vast majority of the best development opportunities that pass over their desks will never reach the open market.
What to look for:
New build development opportunities will fall into two main categories
· Previously developed
· Yet to be developed
Many existing buildings occupy an underutilised plot. When looking at sites with existing buildings on, ask yourself, can it be knocked down and replaced? Such opportunities could include rundown houses/bungalows, commercial buildings, agricultural buildings and blocks of garages etc.
Land that is yet to be developed could include large gardens, provided there is access, agricultural land, depending on its location in relation to an existing settlement, and commercial land such as part of a pub car park.
So how best to navigate these markets to find the opportunities out there:
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On the market
Register with agents: Many building plots are sold through traditional estate and land agents (especially independents) so do monitor their books.
Check out property auctions: Many good quality sites change hands this way. Get on auction house’s mailing list for catalogues. Remember that you will need to have finance in place - once the hammer goes down, the contract is triggered, and the deposit is too.
One way to defuse the emotion of the auction day is to make an offer on a property prior to the auction and if accepted the lot will be withdrawn from the list. Again, you will have to have done all your research and be ready to go.
Unfortunately, post COVID as the inevitable economic downturn starts to bite, many lenders will be looking to recover their losses on bad debt and dispose of properties they have foreclosed on via the auction houses. So over the next year or so there are likely to be more on offer via auction than was the case pre COVID.
Plot finding services: Such services usually make their money by finding sites for larger developers which will attract a high fee or commission. So one-off sites could attract a big fee. So make sure agree what service is to be provided and at what cost.
The Black Book market
You need to be in those black books. Agents will want to be satisfied you will perform and especially have the finances arranged for immediate access, ideally cash buyers with no encumbrances such as a property to sell. So it is essential that you have funds in place and can demonstrate it. You may even consider offering a finders fee to agents who introduce a site you then proceed on.
When you come across such individuals, they should be kept close, and regular contact maintained.
Off-market
Be proactive and try to operate “off-market” don’t wait for sites to be advertised. Adopt more direct methods of finding hidden opportunities and contacting landowners directly.
What sort of strategies will allow you to do this?:
Know your area of search: Familiarise yourself with your chosen search area, gathering as much information on it as possible. Even if you are looking in and around the area you already live in, with a little research you could be surprised by what you find out.
Initially don’t pick too large an area spread yourself too thin, focus in on selected towns, villages or suburbs.
Use your contacts: Tap family and friendship groups. Tell all that you are looking for a site. Maybe their mother has half their garden to sell.
Ordnance Survey Maps, Google Earth and aerial images: Subscribe to websites from which you can view and download large-scale OS maps 1:1250 min. Study the maps of the areas that interest you. They will show the spaces between buildings and land attached to buildings that won't be seen easily from the street. Google Earth and aerial images are also useful in a similar manner.
If you notice adjacent gardens that in themselves are too small for a house, but combined could be big enough, consider assembling a more significant site. It needs patience, tact, and shrewdness, but it can be achieved — particularly when the homeowners realise they can earn some money for a relatively small bit of their garden.
Go exploring, on the ground: Back up the map hunting by walking or cycling around your chosen area to look at these sites and identify others you think may have scope to build on, contact the owner and let them know you are interested. If it isn’ apparent who the owner is, use the online Land Registry and pay a small fee (£3 for the deeds and £3 for a map showing boundaries) to find out who is. If the site has been empty for some time and, hasn’t been sold recently, it won’t be registered. The next option is to send standard letters to adjacent houses to the potential site, asking the site owner to get in contact you if they are interested in selling.
Meticulously take details of the sites you identify. Take a note of address and size and take photographs if possible, and draw sketch plans. This will help you to remember which site is which.
Talk to locals: Establish local networks - Visit pubs and shops in the area; they may know of opportunities. Knock on neighbours doors if you notice a site on your travels. It is surprising what information you will pick up.
Local Property professionals: Architects, building surveyors or planning consultants etc. in the region may be a useful source of leads it could be in their interest to help, as you could be a potential client.
Speak to business owners: Estate departments, Local farmers, breweries, universities, small builders, housing developers, and other organisation may have surplus brownfield land.
Visit the council’s website: Local authorities list planning applications online, usually under the planning or housing sections-with the details of the scheme, who has applied and when. If you find a likely looking opportunity and can get in touch with the owner before they get consent, you could be in a strong position to secure a purchase. Outline applications are a better bet than detailed because such applications are used by landowners to establish the principle of development before a possible sale. Some councils have interactive maps which can be interrogated, making life a little easier.
With or without planning? The best deals are sites that either has no planning or the wrong planning permission.
If you observe a site, with planning in place that has been on the open market for twelve months or more, yet they haven’t been sold? This is often partly down to them having the wrong type of scheme consented. This offers an excellent opportunity to find the owners and see if they will sell to you. It is probably highly risky to buy a plot that has not got planning permission. You can minimise the risk by making an offer subject to your new planning being successful or even try to negotiate an option (legal agreement) with the vendor on the site for a specified time. It may cost you something for the option and application costs but better to risk that than the whole cost of the site.
How to move forward. As a result of the above you could have a long list of potential site sites to which you will send letters to enquire about the landowner’s willingness to negotiate the sale of their site or property. However the response rate to such letters is generally less than 5%. However, the individuals who do respond positively represent a true opportunity.
Get to know the landowner and slowly understand their needs and reason for sale. Find an proposal that works for them, rather than pushing your way in with a take it or leave it price. Remember, understanding and communication is the key to getting off market of deals done.
KEY TIPS
Don’t be tempted to fiddle the figures.
Once a site has been found, make sure a full professional development appraisal is carried out to make sure the site meets your requirements and that there are no hidden surprises. It is all too easy to let enthusiasm get the better of you, stay objective. The key to minimising your risk will on the back of a robust appraisals.
Patience and perseverance
Finding the best self build land is arguably the most difficult aspect the project. A good site will not fall into your lap, it require a lot of time and effort to trawl through perceived opportunities before finding something that works. It’s always better to remain patient. Finding the best land opportunity is very much a numbers game, and often you will need to consider many sites before finding the one.
Keep an open mind and don’t be afraid to compromise
The main reason that people fail to complete on a site is not that they don’t find any possibilities. It is that they do not compromise, and cling to their idea of their dream plot. Ultimately, the "dream plot" is precisely that a dream.
While you shouldn't sacrifice all of your goals to obtain a plot of land, you will most likely need to compromise on a couple of factors. This could mean changing your design from traditional to contemporary or looking for land in a location you never considered. It is important to be flexible.
Remember land opportunities are available out there and can lead the way to creating a fantastic home.
Once you have found a site Harvey Norman Can show you how to assess its potential
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