Land Development & Builder Selection
Newbie here. I have 45 Acres in a semi-rural area in MI. There are currently 3 sub-divisions almost at completion with a high demand in the area still. I am working on creating 30-40 lots ranging from 0.5 - 1.25 acres getting around $60K per 0.5-1.0 acres. I am doing this myself with my brother inlaw that owns a construction company. The property is free because of inheratance.
Typically, what type of percentage of the costs of the homes that are built by the dedicated subdivision builder does the developer recieve? Or, what does a construction company offer/pay to recieve the rights to build all home in a subdivision?
Let me try to clarify. If you are the developer of the property, that is doing everything except for building the houses, how is the said developer compensated by builder who wants exclusive rights to build all homes in that particular development.
Hope this helps.
that builder who wants the exclusive right to to build all the homes only has to do one thing and one thing only: buy all the lots.
MSUsatz269
What was the out come of your subdivision? How did you deal with builders? I am in the process of developing some land and was trying to decide if I shoud try to find some exclusive builders or just list on MLS and sell to the public. I would love to hear your expericnce.
Barbara