BUYING OR SELLING LAND
OPTIONS AGREEMENTS, LAND SALES AND ASSOCIATED ABNORMAL COSTS
Land owners and Estate Agents want the maximum Value for the land you are selling
As independent cost consultants, we have successfully helped landowners maximise the return on their land under option agreements for many years.
The final value landowners receive is often greatly reduced by pessimistic or overstated costs assessed by the developer. Our experience and expertise in this field allows us to analyse cost estimates with confidence that we can generate better value for the landowner of his land.
Abnormal Costs
Abnormal costs are additional or unusual costs that a developer might face when developing a site. For example, unusual ground conditions may mean that deeper and more expensive foundations are needed. The higher the projected cost of Abnormals the less the developer will pay the landowner for the land.
Developers frequently tend to be cautious and overestimate abnormal costs so this makes them a key element that can devalue a site
These costs are deducted from the Gross Development Value of the site to arrive at an Open Market Valuation which forms the basis of the amount paid for the land. The higher the costs of Abnormals the less the developer will get pay the landowner for the land.
Challenging the Developer’s Abnormal costs and assumptions
Working with Estate Agents DGA we work on behalf of the landowner to independently review and question the developer’s figures. We use our experience in this area by conducting a thorough cost analysis of abnormal costs. We investigate all relevant cost assumptions to get them reduced and agree a more realistic price for the landowner
We can act as an expert witness if cases go to independent determination.
What we can to achieve for You
On recent Projects we have achieved much higher final agreed Open Market Value for the land by using our negotiating skills with the developer to accept more realistic Abnormal costs. This increase in value has been significantly higher for the landowner
If anyone is interested in this service, please feel free to contact the Knutsford office to discuss how we can help you
Or Email - [email protected]
Geoscientist | Building trust and collaborations | Science in Government | Digital Transformation and Data Sharing
5 年Darren Beriro
Geoscientist | Building trust and collaborations | Science in Government | Digital Transformation and Data Sharing
5 年Trevor, I think it would be great for you to get in touch with the British Geological Survey who have a wealth of data that could help you assess the value and potential subsurface risks with a piece of land. For any land in precious coal mining areas there is of course the The Coal Authority for additional information. PM me and I will put you in touch with the relevant people.
Director of Product Portfolio, UN PRI
5 年Project Iceberg, although with an inevitable focus on utilities, explored this issue ‘in depth’. The NUAR pilot has the potential to expand into wider data areas to support these types of scenarios ( Holger Kessler Stephanie Bricker)
Director at Betts Geo
5 年We do a lot of abnormal assessments for land purchase - it’s amazing people forget about what’s under the ground! Also amazing is how little land comes with ground investigation leaving loads of scope for devaluation!
Quantity Surveyor at Clan Restoration Ltd
5 年Howes Trevor doin in this hard world