Strategy advice on a 3 house infill development

[Sarah Lorenz]

We have our first small development in the works—a parcel that we will be subdividing into three lots. This is in the city of Ann Arbor where there are very few infill lots. I am intending to list one or more houses to be built, and line up a buyer with a construction loan, as opposed to doing a spec build and incurring the additional costs of funding the construction. We have priced out a house that should appeal to a lot of buyers in this area that also matches very closely to an excellent new construction comparable sale within the last year. These will be priced in the low luxury house market category, which is a little softer right now, so another reason for not doing a spec build. I am looking for advice on my strategy with the listings. Should I list three different houses all at once? Should I list one house and then include some other options in the photos and description? Should I list a vacant lot as a custom build option? And if I do that, should I list the lot at cost or even under cost to catch people’s eye? We would not sell the lot unless the buyer was contracting with us to build the house. And finally, one of the lots will be adjacent to the road, while the other two will be more private toward the back. Any advice on strategy for that situation, other than pricing the first lot or house lower?