I was asked by a buyer recently about a property which was listed twice -- at $60,000 and also at $289,000.What do you do when your raw land is not moving? You put a house on it.
This is an old real estate strategy to generate interest in a piece of land, in which a seller (usually at the advice of his/her Realtor) lists the land while also listing a home "to be constructed" on the same property.
I saw this done a few years ago at a local community, which had been struggling to get off the ground selling lots. So, the developer and his very smart agent changed the product, lowered the price of these homes, and sold out in a year or so.
To be sure, the developer did not make as much money as he had originally intended, but did manage to rid himself of the burdensome carrying costs associated with merely owning the homesites. And, by ridding himself of these homesites, by selling homes on them, he freed up his money and credit for future projects.
There is always more than one way to skin the cat. Have a great day.
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