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I have a client with a plot of land that they are subdividing into 10 lots in order to sell it to a builder/developer. Do they need to hire a special type of agent to do that? Paying a realtor a normal commision is not happening as there is no reason to go to the MLS and we are talking about over a million dollars of land (the residence will be torn down). Are there people who do this as a specialty? I am only helping them figure out the structure of the deal, I don't market property. We are still a couple months out from marketing it but they asked me if I know where to start on that. I figured I would try here before I ask my realtor friends (who might be biased). People are already coming to them asking if they are ready for offers...
I would probably inquire of agents in the area that have been involved with developers who do "in fill" type projects. Ideally such an agent would have several developers that they have a working relationship with and do a deal that have non-traditional compensation. If the agent is going to list the new homes that the developer builds their compensation from the part of the deal could be substantial. Other arrangements include a "finders fee" or some fair hourly rate for advice. I assume that there are already other professionals involved -- attorney, surveyor, enginners, title company...
Frankly, depending on where the client is located and what sorts of local regulations dictate the size of each sub-parcel, I would think that selling the land before doing the subdividing might make a whole lot of sense. If the sale happens on a single parcel there are almost certainly far fewer costs to both seller and buyer -- in my experience any parcel that requires improvements like multiple utility connections, a storm water plan, and roadways is better done by a builder experienced with these sorts of things.
They already tried to sell it non-divided and the buyer/builder tried to screw them over a day before closing citing all these contingencies and "unknown risks" of not being able to develop it. So they went ahead and subdivided. Yes there are already other professionals involved and I'd like to find that agent who knows developers and pay them to market this. They've already put about 60k in to get it annexed and subdivided. But it isn't easy to find, just putting feelers out there resulted in salesmen looking for their own interest, attempting to BS their way in the middle. What I'm asking is if there is a way to find such agents who work in this arena? The state is Oregon if that matters.
They already tried to sell it non-divided and the buyer/builder tried to screw them over a day before closing citing all these contingencies and "unknown risks" of not being able to develop it. So they went ahead and subdivided. Yes there are already other professionals involved and I'd like to find that agent who knows developers and pay them to market this. They've already put about 60k in to get it annexed and subdivided. But it isn't easy to find, just putting feelers out there resulted in salesmen looking for their own interest, attempting to BS their way in the middle. What I'm asking is if there is a way to find such agents who work in this arena? The state is Oregon if that matters.
Ah...tell me the city and I'll get you some names.
That's going to be a specialty. There are agents that would be able to do it but you don't want to just hire any geek off the street for this one.
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