Home Buying in Pittsburgh>Question Details

Charlie, Other/Just Looking in Pittsburgh, PA

Buying a lot in new construction site

Asked by Charlie, Pittsburgh, PA Wed Apr 15, 2009

For a new construction single-family home site, is it feasible to ask about the terms and conditions for buying an available lot? Most new construction sites will permit you to reserve a lot for a period of 2 to 3 weeks but then require a contract to build the home. However, I'm not ready to build just yet but am very interested in securing a particular lot to build one of the offered model homes a year from now.

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Charlie,

I doubt a builder will want to hold a deposit for 1yr prior to building. If you dont mind me asking, why are you not ready to build now?

If you'd rather talk privately, you can message me on here or email me at sean.dawes@longandfoster.com

-Sean
Web Reference: http://www.SeanDawes.com
0 votes Thank Flag Link Thu Apr 16, 2009
Sean, I'm looking for the build time to begin in a year. If possible though, I'd like to avoid selecting the model and options until I'm ready to build with them. I'm more open to paying a non-refundable modest deposit to hold the lot until I'm ready to build.
0 votes Thank Flag Link Thu Apr 16, 2009
Charlie, thanks for your question. Every new construction site is different. I sit at an Estate Home community, http://www.fayettefarms.com, and we secure a refundable "lot deposit" for 10 days. This is to give the buyer enough time to interview our builders and decide which one the buyer want to go with. The lot can not be sold during this time. The reason for the 10 day time period is the developer has to sell all of phase 1 out in order to start phase 2. So a lot in this instance can not be held for 2 years. Hope this helps.
0 votes Thank Flag Link Thu Apr 16, 2009
There's no standard answer for this; it all depends on what the builder is willing to do, how the other units are selling, what he thinks they will sell for in a year, etc. I can't imagine a builder selling just a piece of land inside a development; you will surely have to sign a contract to buy a house.

Usually how this works is you first reserve a lot with a modest deposit. Until you sign the contract for the house, the builder can "bump" you if someone else comes along who is ready to sign. (You'll get the deposit back in that case.)

If you want a guaranteed lot, you'd have to negotiate something else, probably involving a much larger or non-refundable deposit. At some point this becomes risky for you, and since it's non-standard you'd want a lawyer to review the agreement. It's a lot harder to get a deposit back from a builder than from a broker -- hence the special waiver (hand money notice) most brokers use for new construction.

Good luck!
0 votes Thank Flag Link Wed Apr 15, 2009
So you just want to put it under contract with the build time beginning in 1yr or having move in within a year?




Sean Dawes
Long and Foster Real Estate Inc.
Web Reference: http://www.SeanDawes.com
0 votes Thank Flag Link Wed Apr 15, 2009
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