Development land value

Goweresque

Member
Location
North Wilts
A good agent will be on % basis so is always going to want the best deal for the client

Thats not necessarily true. An agent just wants deals done, not the best price on any given one. If you're on (say) 1% of the deal, are you actually going to push too hard to get the client £10m when getting £8m is easier and you can push on to your next deal sooner? If you can guarantee yourself a £80k win today, are you going to do a lot of work and maybe wait however much longer to try and get £100k? When the time spent doing that could be spent working on the next new deal which you can get another easy £80k win on?

Agents want turnover. They don't want deals that sit there for years because they're trying to get top dollar out of the developers, because unsigned deals equals no commission. Hence an agent will always have an incentive to advise his client to settle for second or even third best price now over the possibility of a better price in X years time, because time is money.
 
Thats not necessarily true. An agent just wants deals done, not the best price on any given one. If you're on (say) 1% of the deal, are you actually going to push too hard to get the client £10m when getting £8m is easier and you can push on to your next deal sooner? If you can guarantee yourself a £80k win today, are you going to do a lot of work and maybe wait however much longer to try and get £100k? When the time spent doing that could be spent working on the next new deal which you can get another easy £80k win on?

Agents want turnover. They don't want deals that sit there for years because they're trying to get top dollar out of the developers, because unsigned deals equals no commission. Hence an agent will always have an incentive to advise his client to settle for second or even third best price now over the possibility of a better price in X years time, because time is money.

I said a good agent!

I must have a superb one but based on what they have done for others before us I think I we will have to agree to disagree!
 

D14

Member
A friend has now sold 200 acres for house building. His farm was a horrible farm, urban fringe, poor land so its the best thing that could of happened for him. its been done in 3 phases with the same developer over 5 years. starting price is £1 mill/acre but by the time the infrastructure is costed in his net figure is just under £500k/acre. Basically the landowner pays for everything! The people actually getting £1 miil/acre are sites in cities and large towns.
 

Clive

Staff Member
Arable Farmer
Location
Lichfield
A friend has now sold 200 acres for house building. His farm was a horrible farm, urban fringe, poor land so its the best thing that could of happened for him. its been done in 3 phases with the same developer over 5 years. starting price is £1 mill/acre but by the time the infrastructure is costed in his net figure is just under £500k/acre. Basically the landowner pays for everything! The people actually getting £1 miil/acre are sites in cities and large towns.


so he only got £100 million nett then........................ poor bloke and those dam nasty rip off developers hey !! :ROFLMAO: We should have a TFF wip round for the poor chap


............................ are farmers EVER happy ?
 
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Wombat

Member
BASIS
Location
East yorks
A friend has now sold 200 acres for house building. His farm was a horrible farm, urban fringe, poor land so its the best thing that could of happened for him. its been done in 3 phases with the same developer over 5 years. starting price is £1 mill/acre but by the time the infrastructure is costed in his net figure is just under £500k/acre. Basically the landowner pays for everything! The people actually getting £1 miil/acre are sites in cities and large towns.

I am sure he will be able to just get by on £100 million :ROFLMAO::ROFLMAO:
 

Still Farming

Member
Mixed Farmer
Location
South Wales UK
so he only got £100 million nett then........................ poor bloke and those dam nasty rip off developers hey !! :ROFLMAO: We should have a TFF wip round for the poor chap


............................ are farmers EVER happy ?
And worth nothing farming wise as people ,dogs ,dumping ,fires,etc etc too?
 

JCMaloney

Member
Location
LE9 2JG
My friendly titled chap up this way has had a very,very long ongoing too & fro with his developers and others. Mostly around who pays for what & when, as he says its for the next few generations of the family not him.
Highways England are just doing "Step 1" which is improving junction 23 on the M1 and putting in "his" roundabout.
A smaller (35 acre) development (same landowner) has started on a horrible soggy field where the developers raised the level by about 2 metres.
Seems to have stalled of late as the houses aren`t selling.
I mean who wouldn`t want to live right next to the M1?
https://www.persimmonhomes.com/kings-gate-10725
 

flowerpot

Member
The promotor will find you the builder, and will be on your side. Their costs should be covered by the developer. Key is to get an experienced soliticitor too.
 

@dlm

Member
Thats not necessarily true. An agent just wants deals done, not the best price on any given one. If you're on (say) 1% of the deal, are you actually going to push too hard to get the client £10m when getting £8m is easier and you can push on to your next deal sooner? If you can guarantee yourself a £80k win today, are you going to do a lot of work and maybe wait however much longer to try and get £100k? When the time spent doing that could be spent working on the next new deal which you can get another easy £80k win on?

Agents want turnover. They don't want deals that sit there for years because they're trying to get top dollar out of the developers, because unsigned deals equals no commission. Hence an agent will always have an incentive to advise his client to settle for second or even third best price now over the possibility of a better price in X years time, because time is money.
What you say does make sense but sister has had 18 acres I think, go for planning. Fairly big money, but house prices in this area are top end. Whilst not a huge area all the big guns were in, friend of mine is ceo of one of these firms, he went in with a bid as sister touted plot around initially for interest. She also had sheep keep on some of his land so was fairly friendly with him. Her plan was to use a promo agent. As said I get your take on a couple of mill less at 1% for quick sale is attractive and good business sense if your turn around business is that much quicker, but surely no one is that stupid to go in with a flat rate % for their work? Surely people employ them at say 1% up to x million, 4% in between x and 2 x million and so on. I know friends opening private bid fell 5 million short of final sale 3 years before sale. So maybe she got lucky but he didn’t rush sale for sure, though lucrative edge of village sale
 

unclejonsson

Member
Mixed Farmer
I've got some land in the local plan for 25 houses. A developer has offered brass for only 12 plots, subject to planning. I've got a break down of the developers offer and she predictably built up her costs and risks and played down the final house sale price. Should I engage with a promoter to test the offer. Im wary of signing to him to explore the market and he advises taking the original offer!
 

Clive

Staff Member
Arable Farmer
Location
Lichfield
I've got some land in the local plan for 25 houses. A developer has offered brass for only 12 plots, subject to planning. I've got a break down of the developers offer and she predictably built up her costs and risks and played down the final house sale price. Should I engage with a promoter to test the offer. Im wary of signing to him to explore the market and he advises taking the original offer!

without doubt take professional advice - a developer will eat you alive !

speak to several before engaging them contractually, they will give a view of what you should be getting before you commit
 

cows r us

Member
BASE UK Member
Location
Buckinghamshire
without doubt take professional advice - a developer will eat you alive !

speak to several before engaging them contractually, they will give a view of what you should be getting before you commit
Ive never known such a gravy train, and the advisors and agents are ALL on board.
As @Clive has said get good advice from an independent agent. Developers are slippery buggers. They will chew you up and spit you out with a few cleverly worded lines in a contract. A good agent will pay for them selves 100 times over in a development agreement, a bad one will lose you a lot of money.
 

Still Farming

Member
Mixed Farmer
Location
South Wales UK
Cil tax has knocked the value of building land . Just had to pay nearly 100k on a site we bought. That 100 k was factored into the price we agreed with the landowner
As long as farmers and landowners get the best in the end?
Like part x a tractor ,they can give you anything for it and ask anything for their new one BUT it's the bit in the middle that's important part in the end!
 
As long as farmers and landowners get the best in the end?
Like part x a tractor ,they can give you anything for it and ask anything for their new one BUT it's the bit in the middle that's important part in the end!

doesnt happen though in reality.

developers are unlikely to drop their margins by much, all else being equal the only variable that changes is the purchase price...
 
Agree there are sharp developers and agents about but it is not rocket science to negotiate a nett price payable for the site in total if you do not know what its worth in your area ask on here or through a local agent. Remember to decide what you would be happy with is only a starting point accept no pressure from anyone, and retain a good solicitor.
 

SFI - What % were you taking out of production?

  • 0 %

    Votes: 77 43.5%
  • Up to 25%

    Votes: 62 35.0%
  • 25-50%

    Votes: 28 15.8%
  • 50-75%

    Votes: 3 1.7%
  • 75-100%

    Votes: 3 1.7%
  • 100% I’ve had enough of farming!

    Votes: 4 2.3%

Red Tractor drops launch of green farming scheme amid anger from farmers

  • 1,285
  • 1
As reported in Independent


quote: “Red Tractor has confirmed it is dropping plans to launch its green farming assurance standard in April“

read the TFF thread here: https://thefarmingforum.co.uk/index.php?threads/gfc-was-to-go-ahead-now-not-going-ahead.405234/
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