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Found A Plot, Happy With % Of Gdv, Disagreed On Gdv

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#1 jayroc2k


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Posted 05 April 2016 - 12:35 PM

I found another plot with PP where the vender was happy to sell at circa 40% of GDV which is fair for a self-build project.
But, therein lies the problem, how do you justify ‘GDV’ when there are no real comparable? The vendor justifies on the basis of “unique standalone house” and looks at comparable in a wide area. I looked at the few transacted values for the smaller terraced house in the immediate 0.5mile radius (London) and tried to approximate for “detached, larger, unique” etc.
As you may have guessed, “detached, larger, unique” cannot be quantified, £ per Sq Ft should decrease as the property get larger.
So, back to square one.
Previous plot I withdrew from was argued on the “percentage” part of that formula, now it’s the “GDV” part of the formula. In other words, a seller has a figure in mind and the rest is down to joggling the formula. What surprises me is that developers are considering the plot on what I feel is very speculative.
It’s been a year and this is getting tiring, where is the push for councils to sell to custom builder? When does it kick in? maybe they will be fair on pricing? Somehow I doubt it!

#2 ferdinand


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Posted 05 April 2016 - 04:41 PM

You agree to a binding professional recommendation from an agreed valuer.

Or you make a take it or leave it offer.

Or you agree to a binding pendulum decision by a third party.

Or you agree to toss a coin on the difference.

Or you split the difference.

None an easy decision, and all involve biting bullets for both sides.


Edited by ferdinand, 05 April 2016 - 04:43 PM.