Builder Incentive Needed To Build A Spec House On My Lot

[Joseph Shebetich]

Does anyone have an idea as to what is a reasonalble and customary incentive to offer a builder my large inner city lot with a fantastic view to build a spec home for sale so we both can secure a profit from the partnership? Just thinkin.

[Karen Margrave]

Joseph Shebetich I'm not quite sure I follow what you want to do. Are you wanting to sell the lot to the builder, or get a builder to joint venture with you on a house to be built? There's other options too, depending upon your experience etc.

For instance, we just completed a house that we planned as a spec house. However; as soon as the property was in escrow, I started advertising it and had a buyer lined up before even closing on the land. You could actually do something similar, by advertising a house to be built, etc. Though, it depends on the area, what the market is etc. as to how easy it would be to market it.

As builders we knew what we were going to build on the property, and our son made up a rendering, etc. I put an ad on Postlets to guage interest, and the first people that called ended up buying it.

Doing something like that won't take a big outlay of cash on your part, or going to the expense and trouble of getting a loan, etc., and will give you an idea of whether or not the house is going to be marketable. If not, your land is a lot cheaper to be sitting on than a mortgage for a house that you can't sell.