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Construction companies buy the land and offer the owners a percentage in cash and the rest in square meters that can be built in the future.
Those who own land or a house that can be sold as such seem to have a real gem. For developers, those who decide to sell their property will find a buyer faster and at a better price. But they will receive part in cash and another part in buildable square meters. Is this a good deal?.
For those who are in a hurry to sell and have a significant amount of square meters, offering the property to a construction company is the fastest way.
Landowners understand that this approach is a way to facilitate a sale that typically involves significant sums, and it's necessary to make the purchase easier for the buyer and the transaction more viable and convenient for both parties . Of course, this will depend not only on the intention but also on the property complying with building regulations regarding both location and dimensions.
ADVANTAGES AND DISADVANTAGES OF SELLING THE LAND
One of the main advantages is that the owner can access one or more apartments in the same building, thus maintaining a connection to their place of origin. But most importantly, they will have the opportunity to resell the apartment they received in the exchange at a higher price.
The main disadvantage is that the owners are forced to move while the construction work lasts and when they return they do so to a transformed space or, failing that, go out into the market with the money available to buy a home, in most cases smaller than the one they had.
It is now very common for development companies to offer owners a portion in cash and the remainder in a home within the project to be built (exchange), which takes between two and three years.
While the business may not be as profitable, specialists believe the sale will generate a greater profit when it's in the hands of a development company. If the landowner puts the property up for sale and expects to receive all cash, it's much more difficult, especially since in many cases the buildings are deteriorating or outdated, which should significantly lower the expected price . However, some people cling to emotional feelings and often miss out on good opportunities, sometimes even refusing to accept advice from a real estate agent.
A plot of land may have a price for the owner, but the appraisal is the document that validates it. 100% cash payments rarely exist because they are not in the developer's best interest; hence the strategy of offering an apartment as partial payment, as this allows them to use the available resources for construction.
