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An Introduction to self build

6. Right place and price

 

Right place and  price

You might now think that with so many plots about that getting the plot in the right place and at the right price, might be easy, it will not be. There is no standard way to price a plot and you will find them from very cheap to very expensive. You will need therefore not only to know how much a plot is worth to you and others, but to be able to calculate all the extra costs that need to also be covered in the plot price so as to be able to negotiate the price down, or have someone work with you on this. A common mistake is to get an estate agent to do this, few of these have any real idea of how to do this properly, and most work on a percentage of the amount spent, so the more you spend the more they make.

The price you pay is critical to making the full saving, you don't have to get it at an unreasonably low price, but on the same sort of terms as a professional developer would, allowing for the costs involved and true local value of the plot. The club has consultants who look at and negotiate on plots for members.

As plots are not spread evenly, and some locations will be far better then others, getting a plot at the right price is never easy, but within a short time you should be able to get the right one, at the right price for you.

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Quick estimate of plot value

To get a very quick estimate of the value of a plot you need to look at the value of a house in the area, that could be built on the plot. Deduct from this all the costs involved in putting a house there and the margin a developer would want to make.

The costs would include the costs of making up the site, architect or drawings, planning and other costs, access, services to the plot, foundations, building the house, heating and other internal services, finishing, bathrooms, kitchens, decoration, different types of overheads, landscaping, finance, insurance and the guarantee.

Members have a work book to help them to do this in detail, plus look at other factors that make a site a good or less than perfect site.


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