At What Point in Land Subdividing Process Can You Sell the Lots?

[Zachary Cook]

One thing I'm trying to understand before doing my first raw land development - subdivision deal is at what point in the process are you first allowed to sell the lots. That seems like it would be an important factor in understanding the entire timeline and your exit strategy - to know when it is you can sell the individual lots.

Specifically when is the earliest part in the process end consumers can put them under contract and if those clients have traditional financing would you typically need to have your final plat recorded before they can close?

For some context, I'm learning about land development preparing to do my first deal while I work a day job where my clients are purchasing lots from developers all the time. I sell new construction manufactured homes where very commonly they're purchasing it with land at the same time.

For example, see below two advertisements for newly subdivided land that typically marks when we start selling these to individual clients. Do you believe the land developers are putting these out at the preliminary plat approval stage?

That's what it looks like to me. Then if so, isn't there a chance that you don't get final plat approval and then what would happen then?

Thanks everyone for your help!! Its a lot of work preparing to properly do your first deal I'm trying to get a clear understanding of this process. 

[Greg Dickerson]

Originally posted by @Zachary Cook:

One thing I'm trying to understand before doing my first raw land development - subdivision deal is at what point in the process are you first allowed to sell the lots. That seems like it would be an important factor in understanding the entire timeline and your exit strategy - to know when it is you can sell the individual lots.

Specifically when is the earliest part in the process end consumers can put them under contract and if those clients have traditional financing would you typically need to have your final plat recorded before they can close?

For some context, I'm learning about land development preparing to do my first deal while I work a day job where my clients are purchasing lots from developers all the time. I sell new construction manufactured homes where very commonly they're purchasing it with land at the same time.

For example, see below two advertisements for newly subdivided land that typically marks when we start selling these to individual clients. Do you believe the land developers are putting these out at the preliminary plat approval stage?

That's what it looks like to me. Then if so, isn't there a chance that you don't get final plat approval and then what would happen then?

Thanks everyone for your help!! Its a lot of work preparing to properly do your first deal I'm trying to get a clear understanding of this process. 

Correct. You can not convey individual parcels until the final subdivision plat and parcels have been recorded.You can take non binding reservations which is what we often do as developers with builders or buyers depending on the size of the project.