I agree entirely with the respondent who recommended approaching this situation very politely with the builder/developer. You will want to keep the door open for future contact should the builder and you not come to agreement on price and terms in your initial negotiations. Beyond that -- arm yourself to the proverbial teeth with statistical support for your position. If you feel that the sellers' asking price is too high, be prepared to show him -- diplomatically, of course -- documentation as to why you feel that way, such as recent sales data for comparable lots, in his subdivision and perhaps in other new-construction communities in the vicinity -- as well as evidence of the asking prices of what you consider to be comparable available lots elsewhere. Best wishes!
Syndi Chesser, 100% Club, Broker Associate, Builder
Senior Partner - Chesser Meade Group
Accredited Buyer Representative (ABR)
Certified Distressed Property Expert (CDPE)
RE/MAX Associates of Louisville (Kentucky)
Can you pay cash? Can you close quickly?
You or your agent should make an appointment for you to meet one on one with the builder.
When you go take a signed contract and a check to open escrow.
Warren Buffet uses a phrase in these types of situations, He begins with..something to the effect of...
I am sorry that we arent able to pay you for all the obvious hard work and skill you and your team have put into.....(developing these great lots). But we are able to make you an all cash offer to close immediately, if you would like to consider this. If he says no, dont negotiate. Be VERY polite. Thank him. Be freindly. Walk.
But, be sure to keep the door open if he turns you down . Be even-minded and thank him for his valuable time and also for considering your offer.
November, December and January look a lot different to builders. Especially in the current economy. Even if he turns you down, you had the experience of the one on one negotiation, hopefully you made a useful connection and you may get a call, in a month or two. Or you can always make a follow-up call to see if he changed his mind.
In this down market, TIME is your ally.
Either way, it sounds like you have found the hardest part of the equation and that is the perfect location. If you want to have a strong negotiator on your side to get the most house for your dollar, I would be happy to help.
Wishing you the best,
Mark Atteberry, SG Priest Realtors
Delivering Personal Service with Exceptional Results
I know Tre Pryor (below) has experience dealing with builders.
It will also be important to check the restrictions of the subdivisions and if the builder that you want to use can build in that subdivision.
I am not real clear if you are trying to buy a lot to build on, or a package deal from the builder that owns the lot.
Of most importance is working with a REALTOR that you can trust. They should have your best interest at heart.
You have received excellent advice from Syndi Chesser which you should follow. However the first thing you should do is find a Realtor you are comfortable with and that will look out for your interest. They will be able to present that offer you are going to propose to the seller and present them with the justification (facts) behind it. As I tell anyone that is asking for real-estate advice you need to hire a Realtor we protect the Buyer or Sellers interest.
6421 Bardstown Road, Louisville, KY 40291
(502)298-9600 Direct/Cell/voice mail
(877)385-4663 toll free
Licensed to sell real-estate in KY