I was wondering if anyone had experience selling a house land package. Are there any pitfalls. what costs do you factor in. What contract conditions would you set. The situation is that I own a block of land, I have a purchaser that wants to buy it as a house/land package at a premium price. The deal was priced high because I really wasn't keen on selling the land, but everything has a price. They are professional people from out of town, moving to the area to retire and cannot co ordinate the building process etc. I have built and sold about 11 houses for myself , but never for someone else. I have priced in the cost of the block at a premium + Cost of the house (fixed price contract) + extras(paid by them if requested) + 70k for surprises + 25k extra profit. Must make a commitment by monday either way. My main concren was them interfering or becoming emotionally involved in the project and a dispute developing. They seem like level headed, business people who don't look like a problem.
What do you think ?So long as you have a fixed price contract with the builder, all the details will be locked down and any extras will be charged for accordingly.
The best way to do the deal is with a cost plus type of arrangement. this way if they make changes, you simply put it to the builder, he charges you and you get an agreed mark-up on these costs for managing it.
Just don't get emotionally involved in the business side of it.
Sounds like a good deal with guaranteed money to be made.Good luck,
Mark
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