How to sell a plot of land?

For many people, the idea of owning a plot of land is appealing—whether it’s for building a dream home, a plot that has served a family house for decades, or an investment opportunity. But what happens when the plot has fulfilled its purpose and it’s time to move on? How can you sell it successfully? This article provides quick tips and practical advice on how to succeed in selling your plot. 

Seven things to do before selling your plot

1. Check the zoning plan example from Helsinki city’s planning service or from Espoo city’s planning service . Find out how much building right the plot has and whether there is any potential additional building right. It is important to understand that additional building right does not mean square meters that can be sold in a housing transaction, although in the best case it can be utilized, for example, as storage space. The use of additional building right is decided on a case-by-case basis by the building authority. By reading the local detailed plan (zoning plan), you will learn whether there are regulations that guide or restrict construction on the plot, such as the number of floors, the number of buildings to be constructed, or the color of the exterior walls. The price of the plot is also greatly influenced by how many dwellings can be built on it
   1. The number of square meters of building right also does not mean the number of square meters for sale. Building right is expressed as floor area, while the saleable area is expressed as apartment area. Apartment area refers to the living area, i.e., the interior within the exterior walls. Floor area, on the other hand, is the total area of the building measured to the outer surface of the exterior walls. Floor area is needed to determine whether a house will fit within the building right of the plot. There is a significant difference between floor area and the corresponding apartment area, as the apartment area is about 85% of the floor area. So, for example, if a plot has 300 m² of building right, a house could be built on the plot with an estimated 255 m² of saleable area.  
2. Determine the size of your plot and property ID 
3. Find out whether the property you are selling is inthe form of a plot or a parcel. A property in parcel form must be converted into a plot before construction can take place. If the plot is in parcel form, an application must be made to the city to change the parcel into a plot. Typically, the plot’s area decreases somewhat during this conversion process 
4. Order property register extract and property register certificate from the National Land Survey of Finland 
5. Order Exposure measurement from the National Land Survey of Finland 
6. Ordertitle deed from the National Land Survey of Finland 
7. Order utility map, for example, in Helsinki they can be ordered from the City täältä 

Find out these things before selling the plot

Micro-location matters. Even within the same area, factors like orientation, views, noise levels, and neighboring houses can significantly affect value. Lue lisää mikrosijainnin merkityksestä blogistamme. 

1. Compare new housing prices nearby your plot. The boundary conditions for a plot’s price can be inferred from the prices of new apartments in the area. The price of the plot must be at a level that makes building on it reasonable. It is not worth focusing too much on the price at which, for example, a plot located a kilometer away has been sold, as its micro-location and soil conditions may be completely different from your own plot. It is also good to remember that in recent years, plots have been purchased at unsustainable prices for developers, since apartment prices have fallen relatively more compared to plot prices 
2. Find out the soil composition for example HElsinki City’s zoning mapping service ot Espoo City’s zoning service . Soil affects construction costs and thus indirectly also the value of the plot. The more soil must be treated or prepared, the higher the construction costs rise. Read more about the importance of plot soil on our blog.”. 
3. Assessthe characteristics of your plot terms of future construction projects. The more you understand about the plot and the factors affecting pricing, the more realistic a price range you can form for your plot and evaluate what price you might potentially achieve. In addition to soil conditions, it is important to understand how the shape of the plot and its slope affect its usability. Read more about the importance of plot characteristics in our blog. 
4. Check the zoning plan to ensure that there is no valid building prohibition on the plot. For this, you can also contact, for exampleHelsingin rakennusvalvonta tai Espoo’s building supervision authority. It is important to note that building permit practices can vary significantly between cities as well as between different districts within a city.
5. List all costs, such as document fees, brokerage fees, and marketing costs. These may be tax-deductible against capital gains.  
6. It is often useful to draw up a preliminary agreement. Preliminary agreements are widely used in plot sales, as they make the sales process clear for both the seller and the buyer. In the preliminary agreement, it is advisable to agree on exact dates as well as mutually agreed responsibilities and obligations. It is not recommended to enter into preliminary agreements in which no obligations of any kind are clearly defined. However, it is important to note that if binding dates and conditions are written into the preliminary agreement, it may also include contractual penalties

The easiest way to check if your plot is suitable for us is to contact our land acquisition team: Aapo Klasila, puh. 0405416518 , aapo.klasila@olas.fi Read more about our plot acquisition!

How we can help?

A successful land sale depends on clear understanding between seller and buyer. At Olas, we aim to make the process as simple and transparent as possible. We openly discuss all necessary details with sellers and take care of most of the paperwork on your behalf. That’s why selling directly to an experienced developer like us can be much easier. Read more about our plot acquisition!

At Olas, we have experience from dozens of projects on how to realistically utilize the square meters of plots. For us, buildings to be demolished are not an obstacle either. In addition, for the seller of the plot, there is often the possibility to purchase a new home from the development to be built on the plot. We are a financially solid company, and with us you can do business with peace of mind. Contact us Aapo Klasila, puh. 0405416518 , aapo.klasila@olas.fi 

Olas land acquisition in numbers

Olas reports quarter growth and million-euro profit.

We build geothermal homes from Nordic wood in the most desirable areas of the Helsinki metropolitan region. Since our founding in 2017, we have grown steadily into one of the region’s leading single-family home developers. Financially, we rank among the strongest companies in the sector. In 2023, we exceeded our growth target, increasing revenue by 25% to 17.7 million €. Our credit rating is the highest possible, AAA (Dun & Bradstreet). Read more about our strong growth from our blog.