Selling a New Home Pre-Construction

[Joshua Stewart]

Hi Developers, I have my eyes on three adjoining lots. There are several examples in the city where an investor bought a lot, had the custom design completed, and then marketed/sold at the "completed" price point - but construction did not begin until the sale.

So for instance from one real example, the lot was bought for $875k and the final sale price to the end homeowner was $3.75 million. The homeowner pays for the construction rather than the developer.

It almost seems too good to be true, but doesn't seem to be rare.

Has anyone had success - or lack of success - following this method? Is it possible/legal to market this while still being in the due diligence period before closing on the sale? A form of quasi-wholesaling.

Thanks in advance for all the continued wisdom and insight from all of you!