Ways to sell house and land package?

Soon I will have two newly subdivided block for sale. Now talking to a couple of real estate agents, it seem like the best way to get max. price for the block is to bundle it as a house and land package.
Now is there a way to sell the package under one contract so the buyer won't know how much the land component cost?

My understanding is that traditionally the buyer sings two contract a land contract and a building contract. Now I would rather provide just one contract without letting the buyer know how much each cost. Ideas ?
 
.......why? With H&L packages you are just selling the land anyway....the buyer will choose their own builder unless you want to develop on their behalf.
 
is there a way to structure it that I develop it on their behalf?

The reason I am asking is that the predominant market my product target would be asians. And that the more complete package I could provide the better
 
At the moment you are tied into the project for a small amount. If you then have to wear the cost of building a house as well, you may be caught if the market turns.

Sell it as raw land.
 
Hi hpresident ,

I have specialized in what you speak of in the last few years. In Victoria we have had a major legislative change in how stamp duty is paid should you sign to purchase a block of land and sign H president and or nominee. You can then nominate the new buyer without settling the land yourself however the change in law means that if you put the price higher than your agreed purchase price then you are also liable for stamp duty. It has stopped many in their tracks.

Are you the developer ?

I sell the package by loading the commission on the building component with the most important thing being that the client is paying a market comparable price or lower. This is a win win if you can get the client to perspective take. Many of my clients are from recent migrant back ground and I give huge before and after sales service in an attempt that they don't fall victim to the big four builders.

My service includes a complete move in product ( not turn key ) and a gallery experience for their category 1 inclusions. If they upgrade then they pay cash outside of the contract.

My focus is that they fall within bank valuations.

I am not sure when you say Asian background ? Are they Australians ?

If you are the developer or own the land then you may be able to stipulate your conditions in their contract , the builder they are required to use ( depending on whats happening in your state ). Large estates here need ACCC exemptions to do this.

Your relationship with the builder is critical and if it is good then you could apply for a building permit and then sell the land with an approval to use that builder. You can invoice the builder a marketing commission of whatever your market will hold thereby setting the final price , good luck :)
 
Soon I will have two newly subdivided block for sale. Now talking to a couple of real estate agents, it seem like the best way to get max. price for the block is to bundle it as a house and land package.
Now is there a way to sell the package under one contract so the buyer won't know how much the land component cost?

My understanding is that traditionally the buyer sings two contract a land contract and a building contract. Now I would rather provide just one contract without letting the buyer know how much each cost. Ideas ?

You are selling land only. Its not relevant. If the land was owned by a builder they might sell it as a H&L package. They are really offering two contracts. 1 for the land. Then they will build a house under a second contract. Often builder will give choice of the building. Duty only on the land. How can you offer H &L if you aren't a builder - You want to be the middle man ? If I were buying I would walk away. I'm not buying from someone who isn't a builder.

Since you aren't doing that its irrelevant. They still save. They get job of finding a builder and plans and negotiating price. Duty only applies to the land.

Your land has benefit of being suitable for most plans (subject to size of lot). If you build on it you appeal only to buyers who like your plan and the land.

More importantly have you worked out how the GST will be calculated and included relevant clauses in the contract ??
 
Hi hpresident

Why buy your tissues from Coles and not directly from Johnson and Johnson as Coles are only a middle man? There are several answers for this and I can give many examples across many professions.

Why should my clients pay more for the same thing ? Building with many builders is a drawn out process with cost blowouts and delays , all the while the client is paying interest on the funds being drawn down. (* all building contracts allow builders to put up their price after contracts are settled even if they publicly advertise fixed price or fixed site costs )

There is a large market out there receptive to fast and efficient building delivery. I negotiate discounts from land in high growth areas and deliver on time lines that are realistic and achievable every time. My clients buy from me but have a contract to supply land and a contract to build a house with the developer and builder , not me.

hpresident , you are in the business of being in business and I am suggesting a way to make a profit. As you only have two blocks you are interested in maximizing your return.

Last financial year I sold 267 blocks of land and had 15 cancellations due to lack of funds to complete. The reason why our cancellation rate was so small was that we follow through with each client around the issues of their finance. Up to date I have not received one cent for my work around solving the challenges around financing a house and land package. It is in my interests and many ways the key to our business , finding financial products that suit the best abilities of our clients and not to lenders.

There are ways to profit from your project that are good for everyone. If you are the developer/owner then you can offer the buyer and especially a builder great terms whereby you offer a longer settlement in exchange for no discount. If a builder can sign , start building and have their product sold before they have to settle with you then you can charge a marketing fee to sell the builders home off the plan. As there are only two blocks you can have a go at learning sales, another aspect of property development , good luck.
 
best bet is to advertise with local builders sales agents. Find the display homes closest to you and let the sales guys know they can 'package' their house on your block. Theres no point hiding the land component from the purchaser. If the block still doesnt move, ask the builders reps why, they will let you know if its mispriced etc.
 
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