We finished our first sub division / development 5 months back. Now we are ready for the second subdivision. This time we want to subdivide and sell the blocks without doing any construction. The plan is :
1. Get the sub division approval from the council – We have engaged a surveyor and he is already working on lodging the application.
2. Approach a few builders and ask them to put House and land package together. The builders are happy to advertise / promote the blocks along with the house package on their website / realestate.com.au / other realestate websites.
3. We have approached approx 5 builders and everyone is keen as the land is in a desirable area. Is it a good idea to ask 2-3 builders to advertise the property or just stick to 1 for the time being ?
4. Engage a solicitor to draft a land sale contract.
5. Advertise on other realestate websites.
6. We don't intend to develop the blocks, just sell the land.
The response from the builders is good as SA govt is giving up to 23k for the first home builders. We are very excited to do the second sub division after the roller coaster ride and some great experiences we have had in the first one.
Pls share your experience if you have sold a block of land through builders as H&L package ? How was the experience ?
The cost of selling land using a real estate agent is approx 20% of the total profit . Am looking for options to sell the blocks without engaging a realestate agent ?
Thanks for your inputs.
My only comment is, that if you are confident of the DA, why not sell them now. Will need a solicitor to draw up a OTP, proposed lot or whatever they call those contracts in SA
D
RPI | Certus Legal Group / PRO Town Planners
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I have 2/3 properties on same allotment in SA and all are going up for sale before the development is approved. My surveyor and I are 100 percent confident that the subdivisions will go through, all within regulation size etc. As long as you have submitted to council the documents with your proposed lot 704 etc. Just Market a Land for sale with dimensions with the address. You'll get a extra 2-3 months (whilst council say yes) so sell your property and as land usually takes longer then a home to sell you'll be grateful.
just remember that if you do sign a contract fyou wont be able to settle (get your money back) till usually 7-14 days after the deposit of the approved plans with the LTO. So you could sign after the first month and wait another 5 months for the subdivision to be complete
With your profit are you selling 1 block of land or 2. Either way if your real estate agent fees are 5k for land. theres not a lot of leeway if your selling 1 block of land to make 25k (at your 20% quote) just my thoughts if your incorrect with your land value pricing
Thanks RPI. Is it a good idea to sell through builders ?
Thanks mate.
How are u marketing the blocks ?
Where are the blocks, if you don't mind sharing.
The profit can range between $50-75000 for both. Since there is not of lee way, i want to put them on the market before subdividing. I want to the cost low as well.
Thanks.
Taperoo south australia.. Ill be listing the properties just on the Internet with a agent. A good agent is worth paying 5k if they can get your a contract before your fully approved and or during approval stage. They are a bit better at making the potential buyers feel comfortable about the process. They Also would have the experience to know what to put in a contract wtc ans whst to leave out. Have you got a backup plan for the subdivision if you can't sell the land for the price you want ? Ie can you go the full hog and build something if you had to get it sold ?
Hi,
The plan is to sell one block at least. We will demolish the house once a contract settles on 1 block.
Regards
Can you just confirm what you plans for subdivision is. Ie size land your demolishing the existing house? Are you subdividing a house into two blocks (but in order to do that you need to demolish the house) ? You won't be able to settle on a block until the house is demolished if that's the case.
Hi Wilko1,
the land size is 718 sq mtr. As mentioned in the post, we will subdivide once I sell at least one block. The blocks are put on the market while the process of subdivision approval is in process. The demolition and titles for 2 blocks will be done after the sale.
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