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Options Agreements and Associated Abnormal Costs
As specialists in protecting your interests and retaining your land value throughout the sales process, we have successfully helped many land owners to ensure they are paid fairly for their land.
In an option agreement the land owner wants to maximise the value of their land whilst inevitably the developer’s goal is to buy the land as cheap as possible. Developers will try to offset as many costs as they can against the land value and will overestimate abnormal costs.
Abnormal construction costs could be for example constrained site conditions or unusual ground which could mean additional costs for the developer. These abnormal costs are then deducted from the Gross Development Value of the site to arrive at an ‘Open Market Valuation’. Therefore, the higher the developers forecast for abnormal costs, the less the developer will pay for the land.
What can DGA achieve for you?
We use our experience and expertise to work on your behalf to review and challenge these abnormal costs and then negotiate with the developer. We can therefore achieve a significantly higher final market value for the landowner.
For free, no obligation advice, on how we can assist you please contact Trevor Westcott on 01565 831 999.