Author: Barrie Solomons, Land Manager

This is not a sequel to Lady Chatterley’s Lover*, but the term refers to my role as a Land Manager. I’ve worked on both sides of the fence, within an agency/consultancy and also on behalf of a Developer.

Working at Dev-Homes** was very different to my time spent as Land Manager at a national agency, Est-Agency**, as you’re about to find out …

Chapter 1 - Site Finding

This work is pretty similar, using a system called Promap and studying Local Plans. The main difference was that at Dev-Homes I would be courting and networking with land agents (who would present opportunities to us). At Est-Agency I had to do the opposite - nurture and manage the relationships with Developers.

At Dev-Homes Planning Application leads were not really a source of opportunities.  Clearly at Est-Agency and in my present role, they represent valuable potential leads.

A big advantage for me now is that I can look at a potential site on Promap and be able to make a much clearer judgement on whether it has potential for a Developer or not, thereby doing some of the leg-work, enabling me to target specific potential purchasers.

I look at how many units can be built, the type and size, potential planning issues, such as over-looking neighbouring properties, Highways concerns etc.

Chapter 2 - Evaluating Sites

As an agent, you tend to research the potential GDV (gross development value) of a site and apply a percentage of this to arrive at a land value, depending on the location, type of scheme, etc.  I now tend to consider more information, especially build costs per sq.ft., finance servicing costs, required margin on capital employed, and resale sq.ft values.
This gives me a valuable insight into how a Developer will look at a site and his decision-making process.

I also consider the housing mix and local policy requirements. I didn’t do much of this prior to working for Dev-Homes, but there found it necessary when looking at the feasibility of any scheme.

Chapter 3 - The Selling Story

In my developer role I would always persuade the Vendors it was better to deal with Dev-Homes direct, and not get involved with Agents’ fees etc.  Our expertise, speed of decision, testimonials of other sites, were all reasons not to get into the ‘Dutch Auction‘of several Developers bidding for the same site, and being cannon fodder for the Land Agent.

Now, I recognise that Agents represent a much better option for Vendors, bringing the market to them, looking out for their interests against ‘unscrupulous’*** Developers, making sure we get a fair price for their land, and an honest and objective opinion ...

As Agents we tread a fine line – in such situations, agents are generally paid by the Developer, and so must be seen to be getting the best deal for them. However, the Vendor must also feel that we are working on their behalf. This is why negotiation skills are so critical, trying to please both parties so it’s a WIN-WIN situation.

Ultimately, if you work for a Developer, you need to be far more technically gifted, paying much more attention to detail and knowing the planning process inside out.  You must also be financially astute when putting an offer together - after all if it goes wrong you could  have cost the Developer £millions.  But you still need to be a good sales person. I only met a few who could aspire to all of this!

Prologue

Which side of the fence do I prefer – most definitely, working as an Agent.  You use a whole host of skills, business development skills, creativity, an eye for a deal, tenacity and a modicum of technical ability which will see you through, even in a tough marketplace!

* Lady Chatterley's Lover (Essential Penguin) (Paperback) by D.H. Lawrence (Author)

Based on real life experience
** Names have been changed.
*** ‘unscrupulous’ not the author’s own terminology but one which he's heard used during negotiations on land sites.