Selling blocks without agent

[firstmillion]

Sub Division #2

With the first sub division / development completed 5 months back, we are ready for the second subdivision. The plan is :

1. Get the sub division approval from the council - We have engaged a surveyor and he is already working on lodging the application.

2. Approach a few builders and ask them to put House and land package together. The builders are happy to advertise / promote the blocks along with the house package on their website / realestate.com.au / other realestate websites.

3. We have approached approx 5 builders and everyone is keen as the land is in a desirable area. Is it a good idea to ask 2-3 builders to advertise the property or just stick to 1 for the time being ?

4. Engage a solicitor to draft a land sale contract.

5. Advertise on other realestate websites.

6. We don't intend to develop the blocks, just sell the land.

The response from the builders is good as SA govt is giving up to 23k for the first home builders. We are very excited to do the second sub division after the roller coaster ride and some great experiences we have had in the first one.

Has anyone sold a block of land through builders as H&L package ? How was the experience ? Am looking for options to sell the blocks without engaging a realestate agent ?

Thanks for your inputs.

 

[YvonneVincent]

Hi just wondering How do u determine the suburbs for subdivision? Middle ring suburbs without any more vacant land n hence higher land price?But then the house purchasing price should be quite high as well hence the front house is still not cash positive?

 

[firstmillion]

Hi just wondering How do u determine the suburbs for subdivision? Middle ring suburbs without any more vacant land n hence higher land price?But then the house purchasing price should be quite high as well hence the front house is still not cash positive?

Hi YvonneVincent,

I buy sub dividable blocks with 10 kms of the CBD in Adelaide. We bought this particular block for $250,000 last year, it was on the market for 300,000. A sub dividable block in the same street was selling for $175,000. My thumb rule is anything within 10 kms of CBD, minimum 16 mt frontage, good street with new developments in the area. Capital appreciation outweighs low rent.

In this case, the house is tenanted for last 1 year, we got depreciation schedule and will use the residual value when we demolish the house. Depreciator on this forum does a great job with depreciation schedules.

Hope this helps. Pls let me know if you have any more questions.

 

[Vas87]

Could you recommend the surveyor you used?

 

[firstmillion]

Could you recommend the surveyor you used?

Am using Andrew Butcher. I have sent you a PM. Good luck mate.

 

[firstmillion]

Recommendations

Has anyone had any experience in selling land through a builder ?

Any recommendations for a builder selling H&L packages in Adelaide ?

Thanks

 

[westminster]

If you can sell without a REA then go for it. Providing you are confident in your price it's pretty simple to do it yourself and you can save quite a bit of money.

I would let a few builders offer the package but be up front about it, ie all builders should know that they do not have exclusive rights to it.

OR

You could sell the blocks of land to the Builders (common in Perth) where Builder A buys 2, Builder B buys 1, Builder C buys 1 and they put their sign on it "Build a H&L with Builder C here"

 

[firstmillion]

If you can sell without a REA then go for it. Providing you are confident in your price it's pretty simple to do it yourself and you can save quite a bit of money.

I would let a few builders offer the package but be up front about it, ie all builders should know that they do not have exclusive rights to it.

OR

You could sell the blocks of land to the Builders (common in Perth) where Builder A buys 2, Builder B buys 1, Builder C buys 1 and they put their sign on it "Build a H&L with Builder C here"

I hv told all the builders that its not exclusive to them. Don't think builders will give the price I want. These blocks will suit first home buyers.