Acceptable Period for Vacant Lot Due Diligence?

Question

I recently subdivided a property and put one of the lots up for sale. I received an offer today but the buyer wants a 60 day due diligence period. Considering the lot was just subdivided by the municipality into a R-1AA lot should I give them the 60 days? The lots are cleared and graded (were part of an existing single family parcel). The lot is on a corner so the setbacks are a little harder to evaluate but I was thinking I should counter to at least 45 days.

I appreciate any feedback.

Todd

I appreciate any feedback.

Todd

Patricia Steiner · Answer

60-days would be considered insane in my market for a single lot sale.  That's too much time to take it off-market and risk starting over with the sale with nothing more to show than a "BOM" designation on your listing.  If you decide to do it, I would make the escrow (or a portion of it) non-refundable.

I would stick with the buyer but negotiate something "else."  Best...

Bradley Rosel · Answer

Given the level of builder activity in Central Florida, I would not consider 60 days out of line. The purpose of the due diligence is to give a potential builder the time to evaluate the property for the floorplan the buyer may already have picked out. Keep the deal and give them the time.

Wayne Brooks · Answer

15-30 days seem more than sufficient, assuming they’re not investigating a change in use. There’s really nothing to inspect unless they feel the need to do borings.

Walter Key · Answer

Is an extra 2 weeks on the due diligence really worth the hassle and the potential for loosing the sale? I can't speak to the specifics of Florida since I'm a Central Virginia agent but, 45-60 day study periods for vacant lots in this market at least are well within the "norm". You've got potential delays for builders to do a site assessment for the buyer, potential delays in having a soil engineer available for a soil study, etc etc. Everyone who works in the Real Estate industry is backed up so, 60 days to be able to get those folks scheduled and onsite for whatever due diligence the buyer would like to perform seams reasonable to me. Again, just my $.02 from an agent's perspective here in Virginia.