Development Site Sales Process in Australia: What to Expect as a Seller

Overview

Selling a development site follows a different process than selling a house. The buyers are professionals, the due diligence is more extensive, and the contracts are more complex. Here's what to expect at each stage.

Stage 1: Pre-Market Preparation (2-4 Weeks)

Before your property hits the market, your agent will:

• Commission a boundary survey (if you don't have a recent one)
• Obtain a current title search and review for any issues
• Prepare a planning summary outlining zoning, height, and development potential
• Optionally commission a concept design from an architect
• Prepare an information memorandum — the marketing document sent to developers
• Compile a target buyer list from their developer database

This preparation phase is critical. A well-prepared site attracts higher-quality offers and faster decision-making from buyers.

Stage 2: Marketing Campaign (4-6 Weeks)

Your agent will typically run an Expressions of Interest (EOI) campaign:

• Week 1: Direct contact with developer database, email campaign, listing on commercial portals
• Weeks 2-4: Site inspections with interested parties, responding to information requests
• Weeks 4-6: Offer deadline approaches, buyers finalise their feasibility analysis and submit offers

During this period, expect your agent to provide weekly updates on enquiry levels, inspection feedback, and any early offers.

Stage 3: Offer Assessment and Negotiation (1-2 Weeks)

After the EOI deadline, your agent will:

1. Present all offers in a comparative format
2. Assess offer quality — not just price, but conditions, deposit, settlement terms, and buyer track record
3. Shortlist the strongest 2-3 offers
4. Negotiate with shortlisted buyers to improve price and terms
5. Recommend the best overall offer for your circumstances

The highest price isn't always the best offer. A slightly lower unconditional offer from a proven developer may be more valuable than a higher conditional offer from an unknown buyer.

Stage 4: Contract Exchange (1-2 Weeks)

Once you accept an offer, lawyers prepare the contract of sale. For development sites, this typically includes:

• Standard conditions: Finance, building and pest (sometimes waived)
• Special conditions: DA condition, amalgamation condition, contamination investigation
• Extended settlement: Often 6-12 months to allow for DA and finance
• Sunset clause: A deadline by which all conditions must be satisfied

Contract exchange is the point at which the deposit (typically 5-10% of the purchase price) is paid.

Stage 5: Conditional Period (3-12 Months)

If the contract is conditional (most development site contracts are), the buyer will work through their conditions:

• Due diligence investigations (contamination, geotechnical, services)
• Development application preparation and lodgement
• Council assessment and approval
• Finance approval

During this period, you remain the legal owner and can continue to live in the property. The buyer may request periodic access for investigations.

Stage 6: Settlement (1-4 Weeks After Conditions Met)

Once all conditions are satisfied, the contract goes unconditional and settlement is arranged:

• Pre-settlement inspection by the buyer
• Financial settlement conducted electronically (PEXA in Queensland)
• Transfer of ownership registered with the Titles Office
• Keys and access handed to the buyer

You'll need to have vacated the property by the settlement date.

Typical Timeline Summary

Daniel McCormack

Managing Director, ACRES — Australian Commercial & Residential Group

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