Sell your land or build on it?

Why the question matters

A builder who makes an offer on your land has already done the math. He knows what the zoning allows, what it costs to build, and what the new homes will sell for. His price is what is left after his costs and his profit.

Most owners know only one number: what the lot next door sold for. So the owner sells a lot, and the buyer buys a project. The difference between the two is where land sells short.

You do not have to build to close that gap. You only need to know your options before you sign.

1. Sell as it is

You sign a contract with a buyer and close in a few months. Your risk is the lowest of the four options.

You get the land price. The buyer keeps everything the project earns after that. If you need the money this year, this is often the right choice.

2. Sell with a project

You pay for the plans and the approvals first. Then you sell the land together with them.

It takes about a year. Your risk is the design fees you pay up front. In return, the buyer sees exactly what can be built and does not have to wait for permits, so he can pay more.

3. Build on it

You hire a team to design and build, with a loan or your own money. Then you sell the homes or keep them.

It takes two to three years for a small residential project. The cost, the schedule and the market are all yours. You keep the full result, good or bad.

4. Partner

You bring the land into a project. A developer designs, builds and sells. You receive your land value plus a share of the profit, set in writing before anything starts.

It also takes two to three years, and the result depends on the sale. We explain it step by step in how a land partnership works.

How to choose

Three questions settle most cases.

• When do you need the money? If the answer is this year, sell. The other options take longer.
• How much risk can you carry? Building carries the most. Selling carries the least.
• What can the lot hold? If the zoning allows only one home, the options are close to each other. If it allows several, they are far apart.

No option is the best for everyone. What matters is that you choose knowing all four.

Start with the lot

The third question is the one most owners cannot answer alone. Our free Land Check answers it: enter your address, see the public facts of your lot, and our team tells you within 3 days what could be built there.

For the full comparison with an example in numbers, read our free guide, Don’t Sell Your Land Short.