As a builder, how do you currently deal with clients who haven’t yet procured land? Do you prefer to wait until the land purchase has been finalized or do you try to start working with the client prior to the land purchase?
2 Likes
I work with customers from pre-land acquisition, pre-design all the time. We have a sister company that developes subdivisions. I prefer connect with a client prior to land purchase. Sometimes it can be time consuming but most clients don’t understand certain cost that come along with different site conditions. We charge a client $500 to do a feasablity study and then we give them a credit for the $500 if we end up building the house. If we don’t we still get paid for our time. I have found this arrangement works best for both parties. I’ve saved alot of clients thousands of dollars just by purchasing a different lot in the same neighborhood.
4 Likes
@ctenterprises - very interesting. We’ve been holding back some of these pre-land opportunities because historically, the feedback hasn’t been positive but seems like as long as we are very explicit they are pre-land, there seems to be demand for these types of qualified clients.
Also very interested in the feasibility study - what do you guys typically put into them? Would love to see a generic example if you had one.
I’ve actually been looking at empty lots for my custom home and have been wondering this.
I feel like I don’t know enough at this point to really understand what’s possible with a lot, or if there are issues that might impact my build. Should I have a builder come to the lot I want? Or someone else?
2 Likes
@Jane-K - we’re actually starting to offer a feasibility study to provide our clients with visibility into the applicable logistical challenges and an approximation for time, cost & value associated with the investment. If you’d like to chat, we can definitely discuss, however we’re also trying to understand what the appetite is from builders, to do this sort of feasibility evaluation pro bono (provided they get the build work once the land has been procured).
1 Like
We work with clients who are in the same position, plots variety and costs are different.
Flat plots vs. Sloped or ledge.
Advice you, to work with some one that you trust, would walk you through the process, feasibility to build, engineering and architectural to construction costs.
2 Likes
Hi
We worked with few clients of BuildZoom, they were looking for free feasibility concepts and give the job to others outside BuildZoom clientele.
Thank you
Isam
Good idea! Highly recommend.
1 Like
@isam - so you’d be interested in receiving new client opportunities in the Boston area when they are pre-land purchase but are intending to move forward with a residential build?
They have ti own the land or house before we’ll start working with them.
you can still discuss the house plans and give a quote on the home with a contingency clause if the site means altering the house plan you quoted .
1 Like
I sure would be interested. In many cases the subject property is equally as important to the project. There are so many variables which the land acquisition can effect the outcome and the success of the project. We even provide resources to help the client find that perfect piece of property.
2 Likes
@accentconstruction - thanks for the feedback. Out of curiosity, what resources do you provide? Are you talking about educational materials or do you connect them with a real estate agent who focuses on land procurement?
Jiyan, we have multiple subdivision development lots and infill lots as well. In addition to our portfolio of owned properties, we have clients, (past and present) with properties to sell. Because of the nature of our Consulting and Project Management business we have many properties that are not available and never find their way to a multiple listing or advertised on for sale sites. This has proved to be beneficial for a number of our past clients.
@accentconstruction - very helpful context. It is a more diversified model than the standard construction/builder model and I like the optionality it affords. It seems like that type of portfolio diversity may be more the exception than the rule (at least in the smb / mid-market sector of the home building space) but I’m not 100% on that perspective.
What’s your email. I tried to send you a message on some other topics but couldnt. I’ve got some info I typed out that I can email you on fees for both commercial and residential based on our profit/OH and variance for both
To answer this question, yes to all questions. However! This is an area in contracting that could eat up a considerable amount of time and energy. What has worked with my company, is to retain a drafting/design fee, to give the customer a preliminary foot print and simple architectural design of there proposed home. Having the overall concept of what my clients want, makes things much easier to rule out raw land or lots they may find. Online tools such as Google earth and city web sites with given set backs and zoning, help reduce travel and wasted time driving from lot to lot. The time researching and driving is accounted for in my design free. There’s the obvious issues that may arise such as elevations, slope, easements, etc etc. In these circumstances, if the proposed concept customers envisioned won’t work with moderate site work, certain parameters take affect which are disclosed in all proposed drafting.
3 Likes
@ctenterprises - I just sent you a direct e-mail. Let me know if it doesn’t come through properly. Hopefully there isn’t some e-mail problem.