Last Friday a couple walked into my office after driving nonstop from Florida for the big "one day only" land sale held here in Murphy, North Carolina over the weekend. They pulled out a brochure they got in the mail advertising one acre mountain lots for $9,900, 5 acre creekfront parcels for $29,900 and more.
"What can you tell us about this property? These deals sound too good to be true."
"I can tell you there's probably one lot that will sell for $9,900. This is an out of state company that comes into town and sells 40 or 50 lots in a subdivision in a single day. You'll get a salesperson assigned to drive you around, you'll be told that the first lots you see have just sold and by the end of the day, buyers will spend more than current market value for their bargain mountain land."
I'd spoken with one of the event sponsors the day before. He contacted me after reading one of my ActiveRain blogs to pitch his marketing plan.
This company targets developers and lenders stuck with a big inventory of unsold lots all in one place, promising to unload most, if not all of them, in a few short hours.
And they do. If a seller can come up with $280,000-$350,000 or more up front, this company will place full-page ads in Florida, the Northeast and the Midwest, prepare a colorful brochure and mail it to thousands of households in their target market areas.
Then their team of sales agents comes in for the day to work with buyers and create the hype necessary to move the product quickly and generate as much cash as possible.
If you're thinking of buying land at a one-day only sale, here are a few things to keep in mind:
- You're only seeing lots in one subdivision. In Cherokee County alone, there are almost 2,000 parcels of land for sale on the MLS in all price ranges. We have lots with incredible mountain views in gated developments, acreage on streams where you can fly fish for native trout and wooded lots in a lakefront mountain resort complete with tennis courts, pool and marina.
- The price of your mountain land bargain includes a lot of overhead. For sellers, expenses are high. Advertising alone can total 20% or more of the sale price on each lot. There are dozens of lots on the market as good - or better - where you can negotiate a lower price than you'd pay at one of these sales events.
- What will it cost to build on your lot? A one day sale doesn't give you time to check into the expense of installing a septic system and putting in a foundation. There may be solid rock under a few inches of soil or a mound of fill dirt that requires expensive footings. Is there a septic permit? If so, is it for a conventional system or one that costs $25,000 or more to install?
- Are there subdivision restrictions and a homeowner's association? The roads inside these developments are not maintained by the county. Repairs are paid for by the homeowners. And if there are no restrictions in place or no association to enforce them, you may have a mobile home sitting next door when you're ready to build your dream home.
- Are water and electricity available? How much will it cost to hook up to both? In Cherokee County, you'll either have to dig a private well or hook into a community water system. Did the developer put in enough wells to handle all the lots? Have all the power lines been installed?
There are some fantastic deals available in mountain land right now in Murphy, North Carolina. Make sure the property you're buying is one of them.
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