Residential Land
Option Agreement Price Negotiations
What is an Option Agreement?
An Option Agreement is a legal contract between a seller (landowner) and a purchaser (house builder). This provides the beneficiary of an option agreement the ability to purchase land, following a trigger event such as achieving satisfactory planning permission.
Every Option Agreement is unique, but the price is determined by the valuation mechanism in the agreement itself. This is linked to the value of the property with the benefit of planning permission.
In order to maximise the value, landowners need to ensure they appoint suitably qualified market experts to act on their behalf to ensure the correct value is captured.
What Do We Do?
- We maximise the value of your land and your net return through direct negotiations with the option holders
- We achieve this by providing landowners with an opinion of price, considering the gross development value plus all construction, planning, and development costs to calculate the residual site value
- We assist in managing cost consultants to gain advice regarding abnormal costs associated with the development of the site, specifically infrastructure requirements and quality of the ground to be developed
- We lever the substantial evidence of comparable land transactions we have concluded as agents to ensure the true value is captured
- We work with your solicitors to interpret all legal agreements to calculate the potential net receipt
Why Choose Us?
- Following CBRE’s instruction, we tripled the net receipt for our client in our most recent mandate
- We have unrivalled experience acting for landowners and disposing of land for residential development
- We leverage this experience, to ensure that the true value of the land is considered against market transactions and our own opinion of price
- We specialise in landowner representation in option agreement negotiations, using our specialist knowledge of the land market to negotiate the best outcome for our client
