Option to Purchase the Lot Before the Build??

[WeLoveNC]

Originally Posted by findinghope

yes in my subdivision you can buy the lot and build one of the plans. but you have to start building right away. no mortgage payment until the closing once everything is done. you justneed a "downpayment" like $2k

Sounds like what I would be looking for. If you don't mind me asking, which subdivision do you live in?

[coltank]

Originally Posted by WeLoveNC

Sounds like what I would be looking for. If you don't mind me asking, which subdivision do you live in?

Most of your larger new home builders are set up this way. They have many different floorplans with different options, and then they have available lots to build those houses on. You don't need a mortgage until the home is completed, you just need to give a deposit, which can vary anywhere from $500 to 20% of the cost of the home. If you find a neighborhood you like, just call and ask the onsite agent how it works.

I will tell you that any part of the process could be negotiated, which is why it is important to have representation in the form of a buyer's agent for yourself.

[thomasj]

I echo the previous post. Your deposit is tied to financial loan contingency. If you are not qualified for the loan, the deposit will be refunded to you.

[MikeJaquish]

If there are many concessions on inventory homes in the subdivision, it may kill the comps for your new construction.
Make sure you have an appraisal contingency in the contract, or the will to walk away in the end if the lender's appraisal comes up light...

All the more reason to have an attorney vet your contract.