Reviewing unrealistic land prices with developer Andy Churchill
"Preparing vendors to accept offers that might be a better deal for them, e.g. tax-wise, than just getting the maximum amount of money, so that they are prepared to look at creative deals when they are offered."
Andy Churchill, Managing Director at Earl & Pelham, talks to Trish Chetty Audit about the working with landowners and presenting the best offers.
What would you say are the main barriers to sourcing viable land?
Agents are overpricing the land and raising vendor’s expectations
Education of vendors to alternative creative deals that might actually be more beneficial to them
Lack of access to off-market sites
Lack of sites available and too many going to closed bids
Lack of available comparable evidence.
The uncertainty of whether the market can be ‘forced’ with higher prices for new-build units.
What has been your most challenging land buying experience?
Deal agreed with a vendor only to be pipped at the last moment by a special purchaser, who also supposedly had the cash to do the deal.
How do you feel agents can add more value to a land purchase?
Preparing vendors to accept offers that might be a better deal for them, e.g. tax-wise, than just getting the maximum amount of money, so that they are prepared to look at creative deals when they are offered.
How many deals do you review per month or per year?
5- 10 deals per month
What do you believe can be done between buyers and sellers to improve the land buying process?
Better supply of information by the agents in anticipating requirements of the potential purchasers. This should speed up the process of analysis.