Insight Property Advisors Uses Marketing Acumen to Secure Land for Developer
When a developer client wanted to secure land to build and sell spec homes, Insight Property Advisors helped negotiate the purchase of five parcels from another investor adjacent to the client’s last project in Old Kensington. The parcels were purchased for $170,000 each, totaling $850,000.
During the negotiation, Insight Property Advisors completed a comprehensive market analysis on the after-completion value of the homes and determined that each home would sell for over $550,000. Based on this analysis, the developer felt confident purchasing the land, and we immediately began marketing these homes once construction was initiated.
Six months later, the first home listed for $568,000 and sold for full asking price within four days. This initial sale established an excellent comp for the rest of the homes in the development, and Insight Property Advisors began preselling the vacant lots, offering potential buyers the ability to customize their home finishes.
Establishing the highest demand for the first home in a multi-property development through marketing is critical to create the highest comp for the remaining properties. This also helps with the preselling of the remaining homes, which will lock in a solid profit margin. This is important for developers when financing is needed to complete a development project.
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