Selling land to a real estate developer can seem complex and intimidating for an individual. With the expertise of our real estate agency, this process is becoming much more accessible. We have a thorough knowledge of the essential criteria that developers are looking for, in particular the concept of constructability, a key element that can significantly influence the feasibility and profitability of the project. Let's explore the key concepts and steps in this process together.
Notion of constructability
In the context of land valuation, the concept of constructability of land is essential and is generally measured in square meters of living space (SHAB). This measure indicates the maximum volume of construction allowed on a plot of land, which is essential for owners considering selling their property to real estate developers. Indeed, high constructability increases the attractiveness of the land among real estate development professionals, thus optimizing sales conditions.
The determination of constructability is governed by current urban planning standards, which are synthesized in the municipality's Local Urban Plan (PLU). This key document consists of two major elements: the zoning plan and the by-law. The zoning plan makes it possible to locate the land concerned and to identify the applicable urban planning zone. Each zone is then subject to a set of specific rules, detailed in the regulations, which specify the eligible construction and development conditions for each plot. Thus, precise knowledge of these regulations is essential to assess the constructability of land and to plan its development effectively.
Evaluate the selling price of the land
The selling price is strongly influenced by constructability but also by several other factors:
- Accessibility of the land : Easy access increases value, while access difficulties can complicate and frame future work.
- Characteristics of the terrain : The presence of protected trees, the topography, and the nature of the soil can affect development costs.
- Immediate environment : The presence of protected buildings or green spaces, as well as the type of surrounding homes, can influence municipal decisions and affect value.
- Land dimensions : An inadequately proportioned area can limit development opportunities and reduce overall value.
- Demolition cost : The presence of existing structures, such as houses or warehouses, adds to the overall cost by the need for deconstruction.
The steps of selling to a promoter
Selling your land to a real estate developer is an approach that is characterized by its complexity and duration.
Choosing a local promoter
Whether you opt for a local player or a national group with a strong presence in your region, this selection is crucial because a promoter with a thorough knowledge of the local market will better understand the regional particularities that influence supply, demand and sales prices. Do not limit yourself to a single developer; it is advisable to contact several to find the one who will be most interested in your type of land, which is not an easy task and requires a good knowledge of the market and an extensive network.
Attention, not all developers are interested in all types of land: this requires matching your search with the specificities of your property.
Feasibility study
The feasibility study is conducted by the promoter at his expense. This analysis makes it possible to determine the types of constructions that can be envisaged on your land, ranging from single-family homes to office buildings or collective housing. This is a critical phase that helps to estimate the number of potential lots and to validate the promoter's buying interest while establishing a basis for the selling price.
Offer studies
Following the feasibility studies, you will receive various proposals from the promoters contacted. Determining the selling price and the terms of the offers involves a meticulous evaluation of each proposal received. This stage requires a detailed analysis of the offers, taking into account the suspensive conditions that may significantly affect the terms of the final agreement. Negotiating wisely is essential to ensure that you close the sale on optimal terms.
Signature of the promise of sale
The signing of the promise to sell marks a formal commitment between you and the promoter, where the suspensive clauses and other contractual details begin to take effect. This step formalizes the preliminary agreement but also implies that significant costs are incurred by the promoter.
Building or development permit
The process continues with the application for a building or development permit, an exhaustive process managed by the developer. The filing of this application and discussions with the local authorities may take several months, followed by a validation period that generally lasts between 2 and 5 months, a period that may extend depending on the complexity of the project and specific regulatory requirements.
The authentic act of sale can only be signed after the various regulatory and administrative deadlines have been completed, marking the official conclusion of the sale. This comprehensive process, from selecting the promoter to finalizing the sale, can easily last a year or more, reflecting the complexity and commitment required to successfully complete a transaction of this size.
Need support in this process?
As you will have understood, selling your property to a developer is a complex and delicate process.
By mandating IPGS Immobilier, we become your privileged interlocutor. We analyze your property and we support you in its transfer to a developer, through our network, at the best conditions, according to the specificities of your property and the needs of the market. Let's make an appointment to discuss your project.
Our objective is simple: to share our expertise with you, and simplify the sales process for a faster, more transparent and safer experience.