Keys you need to know to buy land successfully.
When carrying out a real estate business, the first and probably the most laborious phase is the negotiation to buy land. It is important to get a land at a good price, with value in the place where it is located and that is in line with the positioning of the company.
To do this, we need to take into account three fundamental aspects when buying land with a positive ROI:
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The business strategy and the strategy of the plot we are looking for must have a coherent relationship. That is to say, if our business, for example, is focused on building luxury single-family homes, we must find a plot of land in accordance with this premise, both in terms of surface area and location.
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To have a team of experts in the team whose work consists exclusively in finding the raw material. In the case of a small or medium-sized company, this job is usually given to the managers.
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Have in-depth knowledge of the product: know the limits and residual value, how it can be adapted and modified to our project and, thus, detect opportunities.
Once we have found a plot of land that fits our objective, the negotiation process with the owner of the land begins.
It is necessary to take into account some agreement techniques:
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Offer the seller different land prices with different payment methods to make him/her see that the negotiation is not a confrontation but a deal between the two parties.
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Provide a luxury asset in addition to the price desired by the owner. In this way, the owner will be doubly satisfied and we will make the difference in the negotiation of the plot.
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Increase the price of the land through the final product. In other words, payment in kind is attractive to the landowner and reduces the negotiation time.
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To make our project known to the owner of the plot. We will get them to empathize and find it interesting in order to close the negotiation.
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Integrate the owner into the project process by adding special fees. This way, the owner will be involved during the development and it will be less difficult for him to let go of the property.
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In cases of several owners of the same plot, it is convenient to propose different possibilities of value strategies to satisfy each one of them.
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Add another plot within the negotiation that in the long term will have the same or greater value than the one being agreed upon.
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Let the owner know about our experience as a developer or land manager. A successful track record will bring confidence.
In Lobo Studio we have in negotiation and real estate brokerage to help you buy land and help you with the entire digital marketing process with the latest 3D architectural visualization technology, virtual reality experiences, 3d animations and high quality interior design.
If you want you can contact us here
If you still don't know what a render is, I invite you to watch this video from our Youtube channel.
