Tue, July 22nd, 2008
Fueling a Slow Housing Market
Check out this video report about the inevitable connection between a slow housing market and high gas prices. My favorite is the custom builder giving away $100 gas cards for 100 consecutive weeks. An aggressive builder that is determined to move past this market. I’m curious as to what the home builders in and around Folsom and El Dorado Hills are offering. I know my wife would love free babysitting.
Posted by Nick Yonano at 05:09
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Labels: Uncategorized, builders, housing market
Tue, October 2nd, 2007
The "New" Option Agreement
Sellers of raw land are still out there; there just aren’t as many buyers right now. Enter the more buyer-friendly option agreement.
The option agreement, a popular mechanism for buyers and developers in the past, normally contains a feasibility (or due diligence) period during which a buyer can consider whether the land could be developed, and at what cost. Normally, the deposit a buyer puts up for the purchase, becomes non-refundable at the end of the feasibility period unless the buyer disapproves of the feasibility of the land for the proposed project.
In this slower and slower housing market, many buyers are being offered rather generous terms in their option agreements. One area where they have more flexibility is the period of feasibility and the amount of the deposit. Given the relative risk that many developers are taking nowadays when paying option money for land, the new option agreement is one way to keep the land transactions from stopping altogether, and a great way to allow builders to move ahead with building attractive projects in the future.
Posted by Nick Yonano at 03:10
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Labels: builders, developers, feasibility, land, options
