Help With High End Lot Purchase In Partially Developed $1M+ Area
Hello BP,
Got a question outside of my realm of expertise. We have two lots under contract in a high end suburb of Atlanta. We would be purchasing at $200,000 for both when comparable lot comps being sold by the developer are would be $310,000 combined. The neighborhood is filled with 1-1.5 million dollar homes. We buy houses to resell all the time, but I haven't done it yet with land, and definitely not in an luxury (slower moving) area. Thought this would be the right forum to ask. I am thinking of marketing these to an NE atlanta spec home builder with a wholesale fee attached to the back end of the build instead of the front. What are the forums thoughts on the viability of this model. Also, for those that have done lot purchases below value in luxury neighborhoods that still have developer inventory, how long did it take you to exit? were you offering below market or at market?