LOT OPTION?

[Benjamin Haberman]

Hello,

I am new to the BP community and wanted to mention how valuable I really believe this site is. Thanks for all the help so far.

So I was running some comps on my area to see if there were any newer homes listed at a price point between $300-$350 k. I am interested in buying a piece of land and doing a higher end modular. I feel the inventory in our area is lacking newer/higher end /mid sized homes. There is only one company right now doing something similar. I called them today and they mentioned they dont actually own the lots where they are marketing their houses on the MLS. This was very interesting to me. She said they have a "lot option" agreement with the land owner. So from what I gather the land owner can not sell the lot during the agreement and the "buyer" is allowed to market the home on the MLS and use it as a "Dummy listing" (thats what she was referring it to)

My question is. Does anyone out there have experience with these? What incentives do you offer the landowner for entering this agreement?

Any info would be MUCH appreciated.

Thank you

Ben