Selling house to a developer

[Ricewinevinegar]

We live on a medium sized corner plot in a very desirable area. The house is 5 bedroom 4 bathroom, but not in great condition. Decor is dated and kitchen old fashioned, heating and water system is temperamental. I'm thinking it would cost a fortune to make it desirable for home owners but wonder if a developer would be interested in the land. A company bought a bungalow nearby and has built 2 detached houses on it which have each sold for £1.3m. Does anyone have any experience of selling to a developer? How do you find one? Would they pay the asking price if they are just going to demolish? Any problems to consider?

They generally find you, not the other way round if you haven’t put on market. The only reason you get “cold called” if your house is needed as part of a bigger scheme. I know around here developer bought a big plot of land surrounded by houses and they played off 3 properties again each other. Bought cheapest one. In development that property was knocked down and was used as an access road and some parking.

Otherwise if you list with an estate agent (then on right move) developers will be permanently looking and investigating options.

A plot like yours is likely to be of interest to a small scale developer/builder. They will want to get as cheap as possible. Doesn’t mean they won’t pay asking price (or even more if they really want), but ultimately it’s all about margins. They will know what they want to do, how much that will cost, likely sale price.

If you are really interested in this option you could instruct an architect, get plans and apply for planning yourself and then sell with that guaranteed potential.

My house was bought by a developer. Tiny cottage on big plot. He put in various plans for basically a mini estate. All got refused. He ended by putting a large extension on my house, splitting garden in half and building a house on either side. I got the impression they hadn’t done as well as they wanted, but still made money out of the site.

Estate agents will have contact with builders in the area and if it is a house suitable for a developer they will sell to them as they can make 2+ sales - firstly from you then the developer.