Developer told me he would sell it to us for $100k. Then he said I would need to pay a commission of 3.5% to the on site agent. I thought that was fair. Then he told me the 3.5% was for the average selling price of homes in the neighborhood. $17.5k to an agent that doesn't have this lot in MLS or on her website? And the commission is for marketing???

Why not just add 20% to the lot sales price??? Sheesh

7/3/2012 12:12:07 AM

7/3/2012 12:14:00 AM

he wanted to buy an empty lot in a neighborhood for $100k. he knew this came w/ a 3.5% fee for commission, however he thought that would be on the price he was paying.

he found out that the fee he had to pay was actually 3.5% of the average price of a house in the neighborhood that his empty lot (without a house on it) was worth, so the 3.5% figure became $17.5k instead of the $3.5k he was expecting.

7/3/2012 12:17:12 AM

doesn't the seller usually pay the commission, not the buyer?

7/3/2012 12:29:11 AM

He is probably contractually obligated to his sales and marketing company to pay that, most listing agreements for entire developments have clauses like that so the company does not dump a bunch of money on the front end trying to get sales going and then get cut out of deals.

It probably seems stupid because that agent is not doing anything to sell that particular lot, but they probably have invested a lot of time and resources on promoting the whole community and therefore have a contract that covers the whole thing.

7/3/2012 12:32:46 AM

^this

Still dumb. We just took $15k off our offer. Worst he can say is no. Makes me want to build it and turn right around and list it for much less than anything they are listing.

7/3/2012 8:27:53 AM

Sucks for you, I bid $100,000.01

7/3/2012 8:48:18 AM

That does sound a bit rough

7/3/2012 9:06:08 AM

Quote :

" Why not just add 20% to the lot sales price??? Sheesh"

Because $100,000 attracts more people than $117,500

7/3/2012 9:26:20 AM

Quote :

"building lot....... .....$100k"

I hope this was a 5-10 acre building lot.

7/3/2012 9:34:31 AM

Its on 3.5% whats the big deal

7/3/2012 9:36:51 AM

100k for a lot? where is this/size?? sheesh

3.5% of average home price? never heard of that; I always thought it was on sales price of the house/property being purchased.

7/3/2012 9:38:58 AM

I've heard of it being on the average home price when the lot is vacant. Not sure how common it is, but we've definitely gotten that quote before.

7/3/2012 9:43:31 AM

Quote :

"Because $100,000 attracts more people than $117,500"

I've seen groups blow waaaaay too much money on companies that say they will make their non-performing properties do something.

The property is less competitive to you because of the decision of the seller to go with that agent. Other guy upped the offer price, now you have to take it, counter offer, or leave it based on that new price.

7/3/2012 9:43:46 AM

He's non negotiable on lot price so we are walking. He's losing a sell because of a lame agreement he has in place.

Even at 117.5k its a good deal. Homes there are steadily selling for $160+/sqft. It's now beyond our budget.

Also, if we would have had a buyers agent we would have had to pay $30k...

[Edited on July 3, 2012 at 12:08 PM. Reason : A]

7/3/2012 12:06:39 PM

FUCK...$160/sqft!?!?! Where is this?

7/3/2012 12:12:37 PM

Apex... You know... "the peak of good living."

7/3/2012 12:22:12 PM

wow, i'm shocked to see that kind of price per sq foot outside of ITB.

7/3/2012 12:35:15 PM

so the sales agent wants 3.5% of the sale of the house when the house isn't even built yet and all you're buying is the lot? so the agent wants the commission for what, sitting his/her ass in the sales office baking cookies?

so why don't you find a buyers agent, and make the seller side cough up 3%, and have your buyer agent just refund that money directly to you since your buyers agent is doing nothing

then it'll be a wash !!

[Edited on July 3, 2012 at 12:54 PM. Reason : k]

7/3/2012 12:53:26 PM

Quote :

"He's non negotiable on lot price so we are walking. He's losing a sell because of a lame agreement he has in place. Even at 117.5k its a good deal. Homes there are steadily selling for $160+/sqft. It's now beyond our budget. "

so, you are cutting it so close on a half million dollar house that 17k extra on the lot blows the budget? sounds like this wasn't very well thought out, especially if you really feel the lot is worth 117k.

7/3/2012 1:03:30 PM

Quote :

"outside of ITB"

I think that's just called OTB

7/3/2012 1:49:15 PM

^^ 100k is my budget for a lot. When I am told about one that is $100k I will look at it. This lot isn't 100k. It's 117k.

Also, the 100k is what is recorded with wake gov. So who knows where the other is really going. I also have to pay that at closing and probably won't be able to bury it in my construction loan.


Blowing home budgets was so 2005/2006

[Edited on July 3, 2012 at 2:23 PM. Reason : U]

7/3/2012 2:10:35 PM

Apex is nice but not that nice...

7/3/2012 5:03:32 PM

what community in apex is 160/sq ft. Nice places in Apex are still easy to get for 115-125/sqft

7/3/2012 7:20:55 PM

manors at bella casa

im going to be in a nice neighborhood. i wont be there long so there are a few factors that i look at to help me make my decision. im not paying $160/sqft but i will sell it for that

7/3/2012 8:25:48 PM

that hood is more like 145-150

7/3/2012 8:30:40 PM

http://services.wakegov.com/realestate/ImpSales.asp?id=0374794&stype=addr&stnum=&stname=versa&locidList=33107&spg=1&cd=01&loc=1800++VERSA+CT&des=LO7+BELLA+CASA+PUD+PH1A+BM2009%2D00496&pin=0721852792

7/3/2012 9:12:30 PM

I mean I don't need THAT much house...but if you wanna build it for me, I'll take it

7/3/2012 9:29:37 PM

we were going to build the minimum

7/3/2012 10:11:56 PM