[Velvet]

Originally Posted by CoachKandSportsguy

Exactly correct. We bought a $12,000 lot next to a $20,000 on one side and a $45,000 lot on the other side. The lot itself is slightly smaller than the $20,000 lot, but same views, and better views than the $45,000 lot. It was a development starter lot to get the 99 lot development up and going for the other sales to people who need to see houses instead of dirt to buy.

In my first MBA marketing course, the first concept taught was the two different types of sales reps, which equates to the types of buyers:

Shoes salesmen:
Rep A) assigned to an undeveloped region with people with no shoes: Look at all the new opportunities!
Rep B) assigned to a developed region with people with shoes: Look at all the existing resale opportunities!

Some people couldn't buy a parcel of dirt and build with no rec center started, no athletic fields started, no shopping center started, no bridge started because they are visually oriented in the present, and have a hard time envisioning the future development or promises by the developer.

Those types prefer lots with visual development and prefer fully developed neighborhoods, can touch and see the house, etc, prior to buying. That's the model the developers have trended towards, versus the custom built with amenities in the future. .

which kind of buyer are you?

Personally, I’m the kind of buyer who likes few surprises, when it comes to my living place. I even like to know my future neighbors. I know some will move, but most will stay and so will the type of neighborhood. I like to know what amenities are there now and how they look. Nothing stays the same, but for the most part I can see what I’m actually getting into. Speculating, flipping etc is something different. That is business.