Know-How Exchange : Strategy

You might even need more than a rendition, but have taken a plan through the planning process (city or county), paid tap fees, etc. However, this is pretty risky in today's market as you will have to invest more money.

It is probably better to hold the vacant land if you can until the market rebounds. The trouble is, no one knows when this is. If you really need to sell it the best bet is to price it to sell. The reality is that it is hard to move real estate right now.

I really wouldn't build a spec right now. It is much cheaper to carry land that won't sell then to carry a finished house that won't sell.

Mike

I think renderings are great-- do them with different styles -- because as you state, people cannot visualize.

Financing is key. I sold my house for the price I wanted via Craig's List in 30 days-- because I am holding the mortgage for the first 3 years-- the buyer needs to find financing at that time/. I do have the option to renew the agreement. And I might, I don't need the cash. (well who doesn't need cash-- but I don't need it now). I still hold a first mortage, but more than my outgo is covered. I am cash positive.

Being the bank, I have the ability to make upteen more then if I just sold. In a perfect world I'd take the cash, but its not a perfect world.

Bottom line, there aren't a lot of people who qualify for a loan. There are a lot of good folks who have lost their homes- people with good jobs that can pay. The people I sold to went thru a divorce and though they have great jobs-- were not able to qualify conventionally. They were thrilled-- and told me they understood and appreciated that many people are losing their homes and I enabled them to buy-- their cheques are on time. You will gain an edge to be creative on the financing or find a mortgage broker who will.

Let me add a bit more to my post. I totally agree you should not build until you have a buyer. And while it seems that there is a lot of inventory out there-- I met with a realtor on another house I am selling and the scale is tipping. His statement, and it makes sense to me, is that when interest rates hit 3%, people will buy-- if banks will lend. Thus my comment on securing a finance deal.

You miss 100% of the shots you don't take. I'd do renderings of different styles and market via Craigs List and other no or low cost venues. But I would question why you'd be exclusive to one builder- he should step up to the plate and market for you. Another builder might just have the perfect client and there is no reason I can see for limiting yourself to a builder who really isn't doing a lot for you right now. You are handing someone a silver platter -- sure he'll sell the land, but make him earn that platter.

Get a Google Earth photo of the area and highlight the lot on the map. This will show both the size of the lot in relation to the others, as well as what's around it. Also pointing out key items around the lot will help (ie: stores, libraries, coffee shops, schools, etc.) Be generic as possible to have it appeal to the greatest number of potential buyers. Also, listing what the lot does have (ie: public sewers, public water, bus line, etc)

If you have neighbors in the demographic range that could move up then go for it. You can even buy a list of people in the right income range. You're gonna have to target this -- literature to someone in a $200K house is pretty unlikely to step into a 7 fig home.

I'd either do a colored postcard or door hanger. When homes sell in our neighborhood we often get a postcard from the realtor. You can't help but read it when it comes without an envelope.