Selling to a real estate developer: what are the advantages and how to do it right?

Do you want to part with land or a house located in a location that could be of interest to a company as part of a project? Are you wondering if this can be a really beneficial operation for you? Our experts explain to you here the interest of selling to a property developer and share with you their advice for making the most of such a transaction.

Sell ​​to a property developer at a better price

In comparison with a sale between individuals, selling to a real estate developer generally allows you to obtain a transfer price between 30 and 50% higher.

Indeed, the new construction project motivating the purchase of your land has a significant impact on its value. For information, you should know that in the context of a transfer of real estate, it is possible to take into account two different values: the immediate value and the buildable potential value.

The immediate price refers to the value of the land as is for a particular buyer. Except in special cases, this value corresponds just to that calculated on the basis of the price per square meter in the area.

On the other hand, a real estate developer will concentrate, for his part, on the buildable potential price of the plot to make his offer to purchase. This value depends on the characteristics of the property (location, nearby amenities, construction constraints, etc.) in relation to its project.

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Thus, two goods with the same immediate price can have very different potential building prices.

Note also that the presence of a construction on the land in question is in no way an obstacle to its sale, nor a reason for devaluing the price. In principle, when a property developer acquires a property, he only focuses on the characteristics of the plot itself. Your land would therefore not necessarily have more value if it were bare.

Contribute to a social project in your city

Real estate developers are hunters land with high real estate potential. Their goal is to set up construction projects of various kinds (creation of new spaces for living, working, shops, etc.).

In addition to realizing a great real estate capital gain, selling to a real estate developer gives you the satisfaction of participating in the transformation of your city.

But how can you be sure that the project motivating the purchase of your property is really useful?

Be aware that operations planned by reliable promoters such as Nexity are only validated following a dialogue with town halls. They therefore really take into account the needs of the city.

Besides, you can take the lead and go hunting for real estate developers yourself. For this, do not hesitate to check with your town hall about building needs. Then check which of these needs corresponds to your property. You can then contact a promoter and make him a sale offer.

Obtain a new home by selling it to a real estate developer

Instead of selling your property for compensation, you can do so for a new freehold housing. This second option allows you to take advantage of both the benefits of usufruct and bare ownership.

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You can thus:

  • Fully dispose of the property (possibility of reselling it);
  • Generate income (real estate rental);
  • Use it (by occupying it for example).

Be careful, however, because in this case, you only benefit from these property rights when the real estate project is completed. Do not hesitate to inquire about the estimated time to complete construction.

In addition, the new accommodation offered to you must have a value at least equivalent to that of your land. If this is not the case, a payment (additional money) is paid to you in addition to full ownership of the new home.

Selling To A Real Estate Developer

Selling to a property developer: how to get the most out of the transaction?

As much as selling to a real estate developer is profitable, it can be complex. Indeed, the lower the selling price, the better it is for the buyer. And as a regular in the industry, a promoter knows the negotiation techniques well enough to break prices. It is therefore important to prepare well to end up winning.

Surround yourself with professionals to sell to a real estate developer

To best serve your interests, offer yourself the services of a promotion broker real estate. This acts as an intermediary between you and the promoter. Plus, if you want to go developer hunting yourself, he can help you find potential buyers.

Bet on negotiation to sell to a real estate developer

First of all, you must know the potential building price of your property. Then prepare your negotiation down to the smallest detail.

The sale price

the countdown is a financial balance sheet used by developers to deduct from the potential turnover of the real estate operation, the expenses of the latter: construction costs, taxes, various procedures… Mastering the negotiation allows you to sell at an advantageous price despite the countdown.

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The return to better fortune

When the balance sheet of the real estate operation goes beyond the forecasts, you can profit from it thanks to the return to better fortune. This is a clause which provides that the promoter pays you part of the bonus he realizes following the realization of his project.

Suspensive clauses

Also remember to carefully negotiate the conditions precedent, as well as those for the payment of a compensatory allowance. This indemnity corresponds to a compensation that is paid to you if the promoter abandons his project after signing the promise of sale and after having immobilized your property for several months. The amount of this allowance varies between 5 and 10% of the agreed sale price.

In conclusion

Selling to a real estate developer allows:

  • To realize a more interesting added value;
  • To participate in the development of your city;
  • To obtain a new home through the sale in donation.

To make the most of this sale of land, surround yourself with knowledgeable professionals and bet big on negotiation.

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