U.S. CitiesCity-Data Forum Index
Go Back   City-Data Forum > General Forums > Real Estate
 [Register]
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
View detailed profile (Advanced) or search
site with Google Custom Search

Search Forums  (Advanced)
 
 
Old 08-23-2018, 06:12 PM
 
Location: USA
626 posts, read 223,494 times
Reputation: 1724

Advertisements

Weíre looking at purchasing a lot in a new development near Auburn AL. Iíve been in touch with the developer since Jan. At this point, itís supposed to be lots between 5 and 15 acres and gated. Auburn is in Lee County and apparently, gated developments arenít allowed there. This will be just across the line in Chambers Co and about 18 min from downtown Auburn, 14 min from Opelika. It doesnít appear to be any gated communities in the area.

We were in AL earlier this month, met the developer and walked and drove the land. Itís a beautiful piece of property and we like the area. The developer was in the process of getting quotations to build the main road and while he had a good idea of the cost, he had to validate that. That done, theyíll be laying out the lots in the near future and heís meeting with the engineers on Monday.

Iíve purchased lots before and built on them but they were established neighborhoods but Iíd appreciate suggestions on contingencies I can add to the purchase contract to protect myself if the development falls through. The developer claims to have many interested buyers but who knows? I want to insure the road is built at a minimum. I donít care about the gate or really, anything else as long as I can get power to the lot. Iím on the hook for a well and septic tank, neither of which is an issue.

Iím in no rush...time is on our side. This will be our retirement home and while I can literally retire anytime, my wife wonít retire for probably 4-6 years. Auburn/Opelika is a fast-growing area. A good friend of mine that I grew up with lives on several hundred acres less than a mile away. He has options on 47 acres just past his home and has offered to sell us a portion of it. They live on a dirt road and heís set up for hunting and a little farming. Iím not anxious to live on a dirt road so thatís our fallback position if the developer prices himself too high for our budget. The developer is a friend of my buddy and helped him purchase his land. Heís vouched for him but again, thatís not a guarantee of any kind. Just a ďnice to knowĒ.

Iím guessing these are standard boilerplate, contract contingencies via an attorney that can assist us but Iíd like to have a good idea of what to expect. Suggestions are appreciated.
Quick reply to this message

 
Old 08-23-2018, 07:12 PM
 
Location: USA
626 posts, read 223,494 times
Reputation: 1724
Shoot... my apologies, this should be in real estate.

Moderator cut: *poof* your wish has been granted.

Last edited by harry chickpea; 08-23-2018 at 07:36 PM..
Quick reply to this message
 
Old 08-23-2018, 09:39 PM
 
Location: The Berk in Denver, CO USA
13,241 posts, read 18,907,521 times
Reputation: 20700
Wait.
1-2 years and the consider buying.
Quick reply to this message
 
Old 08-23-2018, 11:33 PM
 
Location: USA
626 posts, read 223,494 times
Reputation: 1724
Quote:
Originally Posted by k7baixo View Post
Shoot... my apologies, this should be in real estate.

Moderator cut: *poof* your wish has been granted.
Thank you!
Quick reply to this message
 
Old 08-24-2018, 09:37 AM
 
315 posts, read 252,973 times
Reputation: 555
Having lived through a situation with some similarities, never be the first person into a subdivision. I know it's not helpful, but I'm not sure there is enough legalese out there to protect yourself from all the possible issues.
Quick reply to this message
 
Old 08-24-2018, 10:21 AM
 
Location: USA
626 posts, read 223,494 times
Reputation: 1724
Quote:
Originally Posted by TWG1572 View Post
Having lived through a situation with some similarities, never be the first person into a subdivision. I know it's not helpful, but I'm not sure there is enough legalese out there to protect yourself from all the possible issues.
That's my fear also plus, we want one of the smaller lots. I wonder if an option to purchase would work? Otherwise, the fallback may be to purchase from my friend...which isn't the worst thing in the world.

I've got a few years to figure this out...thanks goodness.
Quick reply to this message
 
Old 08-24-2018, 02:19 PM
 
Location: Kansas City North
3,643 posts, read 6,820,502 times
Reputation: 4665
We were in a similar situation years back. Developer took “reservations” at $1,000 (refundable). Once the streets were in and everything platted, those with a reservation could then pick out a specific lot. The selection was made in the order of who was on the list first. As it turned out, we found an already constructed home in the middle of all this, and we did get our money back. The “reservation” contract was very simple, one page as I recall.
Quick reply to this message
 
Old 08-24-2018, 07:12 PM
 
Location: USA
626 posts, read 223,494 times
Reputation: 1724
Glad it worked out for you!

I'll play it by ear for now and see how things develop. I can't afford to **** away x0,000 so I have to proceed cautiously.
Quick reply to this message
 
Old 08-27-2018, 01:52 PM
 
5,515 posts, read 6,193,865 times
Reputation: 14091
Back in 2008/09 time frame I bought a lot in a 'new' development. 55 plus was the target audience, so several townhomes were constructed on spec, and one SFH was built as representative of the type of home that would be encouraged on the SFH lots. Club House was done....wonderful facilities including locker rooms, work out rooms and equipment, kitchen, media room, pool etc.; a lot of investment was made and the developer was a well known, stand up guy.


Enter '09/10 and the real estate market falls apart. Developer is bleeding money. Has plenty of "I would buy a lot and build in your development if I could sell my old family home" type of interested 'buyers'.


We put down a goodly amount of money in a good faith attempt to show we were serious. Even closed on a desirable lot in anticipation of building a home, for which the plans were complete.


Phone rings one day. It is the developer. Being perfectly honest (which many are not) he says I am tired of bleeding money and am going to shut it down. Balance of spec townhomes were sold at auction, while the lots were bought piecemeal by a guy building nice starter homes for young families. We sold our lot to this builder for about half of what we paid for it.


The only thing worse, OP, is if the documents read that municipal credits which were used to provide the debt funding to build the infrastructure say that the home/lot owners take over responsibility for paying back these funds should the developer default. In that case, if you are the only buyer, you owe a few million to pay for the infrastructure. Ouch!


First in gets the best lot and a lot of niceties from the developer. They also get all the risk. Last in gets less lot quality, perhaps, but also piece of mind that they haven't bought into a disaster.


Tread cautiously.
Quick reply to this message
 
Old 08-27-2018, 06:00 PM
 
Location: USA
626 posts, read 223,494 times
Reputation: 1724
Thanks....agreed. Our ATL neighborhood was on its third builder when we purchased our home back in 1991. We got a pretty good deal but not everyone was as fortunate.
Quick reply to this message
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.

Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.


 

Quick Reply
Message:
Over $104,000 in prizes was already given out to active posters on our forum and additional giveaways are planned!

Go Back   City-Data Forum > General Forums > Real Estate
Follow City-Data.com founder on our Forum or

All times are GMT -6.

© 2005-2018, Advameg, Inc.

City-Data.com - Archive 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34, 35 - Top