Process for Bringing Together a Piece of Land and a Builder

[Connor Cushman]

Hi Everyone,

Asking this question as both a buyer and an agent. It's becoming more common in my area to want to buy a large parcel of land and then find a builder to build on it. Could someone help walk me through the process? What does this typically look like?

For example, I'm an agent and I find a 100k plot of land with my buyer and the commission is 3% for that and then we connect with a builder to build a 300k property on the land. How does the actual deal get done? What is the commission structure? How does the financing happen from the buyers perspective? Do the land and the new construction close at different times? Who's responsible for making sure utilities and everything is set up properly on the land?

Would love to jump on the phone with someone that's an expert in this to talk through.

Thanks in advance!