Selling commercial land can be tough. The real value lies in the future potential it offers the buyer, and predicting that isn’t easy.
Selling commercial land requires experience, market knowledge, and a clear understanding of a property’s future potential. SterlingCRE Advisors brings all this to the table, combining years of expertise in Montana’s commercial real estate market, robust local data, and an extensive record of successful land transactions. We know the zoning, regulations, and buyer preferences in Montana’s key markets—Bozeman, Missoula, and beyond—and we use that knowledge to guide clients through the intricacies of buying and selling land, positioning it for the best outcome for our clients.
Adding to this comprehensive approach, SterlingCRE Advisors offers access to advanced technology with TestFit software. TestFit uses AI to generate detailed development scenarios for potential buyers. It pulls in data such as local zoning, building codes, setbacks, topography, construction methods, and floor area ratios to create accurate virtual building models. On top of that, TestFit builds out financial pro formas, enabling side-by-side comparisons of different development scenarios, which helps determine the income a property can generate and informs buyers on what they can afford to pay.
This level of analysis used to require a team of architects, engineers, planners, and financial modelers. TestFit reduces the time and cost it takes to do up-front vetting of a site, offering clients a significant advantage in a fraction of the time. SterlingCRE Advisors’ brokers, with CCIM training and land-use coursework that go beyond traditional real estate education, maximize the value of this tool.
Using land feasiblity software in brokerage valuations for land is almost unheard of, even in large national CRE firms. The expertise needed to use it effectively is hard to come by. SterlingCRE Advisors’ investment in TestFit, combined with our brokers’ expertise, offers substantial benefits to both sellers and buyers. By leveraging this advanced technology, we streamline the complex process of land evaluation and development projection, helping to tackle key challenges in the market.
To be clear: consultants are still needed even with TestFit and AI feasibility platforms. What TestFit does is help to determine the bounds of what is possible and what is likely on a site. Doing so cuts down on the time and cost to find an optimum solution.
Challenge 1: Accurate Valuation
Not all land is created equal, so setting a the right price can be tricky. Even with comparables, factors like soil type, adjacent land uses, zoning and topography can cause major price variations. In many cases, the intensity of the use of the land determines the value of that land. Higher intensity uses (commercial, Multifamily) tend to garner higher land prices than lower intensity uses.
Using TestFit, our advisors simulate what intensity of use can be built on the property. From there, our team projects potential income from the project, helping to work backward from the developer’s financial goals. This ensures a fair price that supports both seller expectations and buyer profitability. These assumptions are then confirmed by design professionals. But, the upfront look at potential strengths and challenges for a site help to accurately set prices.
Challenge 2: Finding the Right Buyer
Even experienced developers may struggle to determine whether a site meets their needs. Challenges such as zoning setbacks, truck access, or water/sewer system capacity may not surface until after costly engineering reviews. This limits the pool of serious buyers.
TestFit allows our team to identify potential issues early, giving buyers more confidence to invest in due diligence. This reduces the time on the market and increases buyer interest, speeding up the sales process.
How We Help Sellers
If you’re selling land, marketing is everything. Our advisors gather all the necessary property information and advise on options like rezoning, boundary changes, or subdivisions. By presenting visuals such as site plans and 3D models, we tell the story of your property’s potential.
To sell land at maximum value, a landowner needs to know what elements of the property drive value for a buyer. By using TestFit and local market knowledge, we help answer a prospective buyer’s major development questions: how many units (or square footage) can I fit on this property? And how much parking can I conceivably fit on the property? How much cut and fill will be required?
TestFit, when armed with the right information provided by our advisors, rapidly generates optimal solutions to these questions. With the information in hand, prospective buyers can accurately create a development pro for which is often a precursor to top dollar offers to purchase. With this information in hand, prospective buyers can accurately create a development pro forma which is often a precursor to top-dollar offers to purchase.
How We Help Buyers
With in-depth knowledge of Montana’s land-use policies, we quickly identify which sites fit your goals. Many listings lack critical details like zoning or floodplain data, and we fill in those gaps.
TestFit streamlines site selection by ensuring only viable properties are considered. This saves time and reduces costly surprises during the development process. With these insights, we also help negotiate fair land prices.
Ready to Sell or Develop?
If you’re thinking of selling, contact our team for a no-obligation opinion of value. We’ll provide a detailed report on your property’s market value and its potential.
Looking for the perfect development site in Montana? Our advisors can prepare a tailored site selection package to meet your needs. Let’s make your next project a success!
FAQs About TestFit
Can your TestFit analysis replace the need for architects and engineers?
Not entirely. It can replace preliminary steps in development like basic site plans and fit studies. However, an experienced team of architects and engineers should be engaged when you have identified the right site.
How long does a TestFit study take?
SterlingCRE Advisors can pull together a basic study in 1-2 hours.
How much does it cost to do a TestFit study?
Our team provides complimentary TestFit studies to our clients.
Success in Montana’s commercial land market requires a deep understanding of the market, the right tools, and a partner committed to your success. SterlingCRE Advisors has the expertise, technology, and local knowledge to make the complex process of land transactions seamless and efficient. From initial valuation to site development projections, we empower clients to make informed, confident decisions with the support of our cutting-edge tools and dedicated team. Ready to explore your land’s potential? SterlingCRE Advisors is here to help you make your next move with confidence.
