Buying a lot and not building (right away, or ever) (Madison: for sale, real estate)

[friday13]

This question has bugged me for some time as my options to get the house I want are narrowing down. Looked at the houses, looked at the land. Take Madison City for example. It is pretty much built out, the little land left is in the hands of developers, builders, the Balch-Gillespie rezoning case, heirs(trust) of long-standing families that are not selling piece meal, you get the picture.

So I get on valleymls and see these "entire" subdivisions up for sale (Greenbriar Woods, Carriage Hill). Does it mean the seller (I assume a developer?) put these lots for sale no strings attached? (of course building within the specifications of the neighborhood, but not forced to build with a preferred buider or build "now"-I may build in 5 yr, or never if I want). As opposed to I go into a s/d under construction, pick my lot and build within a year (or by the time the neighborhood is completed). Am I correct in my assumptions? Thx

NB> the "older" lots are surrounded by 30-70 yr old houses, smaller than 1500 sqft, sloped terrain, woodsy (addl grading costs), so doesn't make sense to even consider, others are $100k up, pfft.

[Elizabeth_G]

friday13: Makes total sense! Many times, developers will put a time frame on building so be sure to check that. Also, occasionally the developer/builder will put restrictions on who may build the home. I've more leniency given lately...I'm sure that is directly related to the economy There are some great builders that are now willing to do cost plus which can be a cost saver for sure. (not always, but certainly can be).

[friday13]

Originally Posted by Elizabeth_G

friday13: Makes total sense! Many times, developers will put a time frame on building so be sure to check that. Also, occasionally the developer/builder will put restrictions on who may build the home. I've more leniency given lately...I'm sure that is directly related to the economy There are some great builders that are now willing to do cost plus which can be a cost saver for sure. (not always, but certainly can be).

So selling the lots alone on mls doesn't necessarilly mean they come without time constraints. They might or might not, is that what you're saying? I thought (was hoping) this very fact -of selling the lot alone (tell-tale)- would take the guesswork out of my search (so I don't have to go around asking). As opposed to mls-ing for new homes (proposed SFD-come in, pick your lot, we build your house in 7 months-with a listing like that you know what you're getting). I only want a lot and time to build when I want (and free of HOA, if possible).

You see my reasoning: both cases involve a "bare" lot, but one is listed lot, one is a SFD. I know for SFD I'm obligated to build ASAP, but what about the lot (sold by a developer, or in a s/d as these are the only remaining lots worth-looking to me)?

[padmaster]

You may already know this but.....I learned a few months back that if I purchase a lot, then I must get the construction loans to build on it....as opposed to the builder purchasing the lot and building on it, then he gets the construction loans. Just thought I'd throw that out there

[friday13]

Originally Posted by padmaster

You may already know this but.....I learned a few months back that if I purchase a lot, then I must get the construction loans to build on it....as opposed to the builder purchasing the lot and building on it, then he gets the construction loans. Just thought I'd throw that out there

Buying cash (my own funds). Never crossed my mind to put that out there, but I see it makes a diff.

I am in the planning, weighing my options, looking into possibilities phase. Not moving for another 3, maybe 5 yrs. I'd get the lot now (free and clear), and build later when I need to (maybe I relocate, maybe I win the lottery-I don't play, but just saying, I'd have the lot for 5 yrs and sell it or build then). And because at this time the only lots worth-looking at are the ones selling "in droves" in new subdivisions, as opposed to occasional seller of just one lot (they probably purchased in their time as I am looking into it right now), I'm in this situation

[Elizabeth_G]

friday13: Yes, there could be time constraints on building. My guess is, in a subdivison that has vacant lots just sitting and have been for quite some time, they won't be as strict with that. New subdivisions would more than likely put a time limit on them, typically. (don't you just love the "typically, usually, could, may, etc.?). lol. In the Real Estate world, all is negotiable

[djmaxwell]

Originally Posted by friday13

So selling the lots alone on mls doesn't necessarilly mean they come without time constraints. They might or might not, is that what you're saying? I thought (was hoping) this very fact -of selling the lot alone (tell-tale)- would take the guesswork out of my search (so I don't have to go around asking). As opposed to mls-ing for new homes (proposed SFD-come in, pick your lot, we build your house in 7 months-with a listing like that you know what you're getting). I only want a lot and time to build when I want (and free of HOA, if possible).

I believe in our subdivision at least, the time constraint is in the covenants rather than a directive from the builder.

Now, if the builder still controls the HOA, they can change those at their will. I think that might have been touched on lightly in one or two threads here already.

[friday13]

Originally Posted by djmaxwell

I believe in our subdivision at least, the time constraint is in the covenants rather than a directive from the builder.

Now, if the builder still controls the HOA, they can change those at their will. I think that might have been touched on lightly in one or two threads here already.

Might've. There was at one point (1-2 yrs ago) a lot in Bradford Farms. I doubt that was the developer's, after all BF is an older s/d. But the listing said "construction subject to the architectural board", but didn't say "buy it today, build it tomorrow" (could've been in the CCRs, maybe, but not explicitly referred to in the mls listing). So, had I bought that lot 2 yrs ago, and waited another 5 until it was time for to move to Madison (build), and found a better one, I would've sold it as a lot (if the HOA allowed me to keep it for that long). For example, there's one in Highland Lakes (way beyond my price range, but that's not the point) - I assume that's somebody's lot purchased 10 yrs ago - their HOA seems to have allowed an empty lot all this time (they could've been constrained to upkeep, but nonetheless, it's a vacant lot)

[djmaxwell]

Originally Posted by friday13

Might've. There was at one point (1-2 yrs ago) a lot in Bradford Farms. I doubt that was the developer's, after all BF is an older s/d. But the listing said "construction subject to the architectural board", but didn't say "buy it today, build it tomorrow" (could've been in the CCRs, maybe, but not explicitly referred to in the mls listing). So, had I bought that lot 2 yrs ago, and waited another 5 until it was time for to move to Madison (build), and found a better one, I would've sold it as a lot (if the HOA allowed me to keep it for that long). For example, there's one in Highland Lakes (way beyond my price range, but that's not the point) - I assume that's somebody's lot purchased 10 yrs ago - their HOA seems to have allowed an empty lot all this time (they could've been constrained to upkeep, but nonetheless, it's a vacant lot)

Scanning through Bradford Farms' covenants, I didn't see anything that placed a restriction on time to build on a lot.

http://www.bradfordfarms.com/minutes/Convenants%20and%20By-Laws%202009.pdf (broken link)

[djmaxwell]

Originally Posted by friday13

Might've. There was at one point (1-2 yrs ago) a lot in Bradford Farms.

From the HOA board's minutes, it looks like that lot is still for sale, if you want it.