We are strongly leaning towards buying a lot and building. We will sell our house and rent for a year during construction. We are focused on one specific lot that meets our needs because we have very, very specific requirements regarding location.
The lot is not cheap and is listed in the MLS and is a clear tear down. I think there's about a $75,000 spread between the sellers expectations and what a builder is willing to pay. I think we're going to have to be somewhere in the middle to get them to accept an offer.
Since the lot is listed in the MLS, I am assuming that there's roughly 3% fees for a buyer's agent.
My questions:
1) Is it reasonable to ask a buying agent to take a 1% fee to assist with closing, run some comps, and use the rest of buyer agent fees to lower acquisition price? If so, what's the best way to structure it?
2) What's the best way to finance a purchase like this? Are there construction lenders that will finance the land acquisition cost that ultimately gets wrapped into a loan that will convert to a permanent mortgage once everything is complete?
Any other specific advice?
We have enough cash to finance a 20% down payment but not much more until we sell our existing home.
The lot is not cheap and is listed in the MLS and is a clear tear down. I think there's about a $75,000 spread between the sellers expectations and what a builder is willing to pay. I think we're going to have to be somewhere in the middle to get them to accept an offer.
Since the lot is listed in the MLS, I am assuming that there's roughly 3% fees for a buyer's agent.
My questions:
1) Is it reasonable to ask a buying agent to take a 1% fee to assist with closing, run some comps, and use the rest of buyer agent fees to lower acquisition price? If so, what's the best way to structure it?
2) What's the best way to finance a purchase like this? Are there construction lenders that will finance the land acquisition cost that ultimately gets wrapped into a loan that will convert to a permanent mortgage once everything is complete?
Any other specific advice?
We have enough cash to finance a 20% down payment but not much more until we sell our existing home.
