Dealer-Located Land

[Chelsea]

I was talking to a salesman in a Fleetwood dealership about the difficulty in finding land to put a double-wide on. According to this person, the dealership can usually locate a suitable piece of land, but here's how it works.

I would pick out a model that I like and then specify the general area where I wanted to buy land.

I'd have to pay the dealership $750 earnest money which would be applied to the down-payment once a piece of acceptable (to me) land was found.

If the dealership could NOT find a piece of land that appealed to me, Fleetwood would refund my $750.

Does this sound reasonable to you (anybody)? This is a company-owned dealership, not an independent one, if that matters.

I'm a little hesitant to put down the money BEFORE I know I'm going to be happy with the land they find me, but on the other hand, I understand that they don't want to point me in the direction of land without getting some kind of commitment from me, only to have me buy it and put a Palm Harbor or a Clayton on it.

Does this sound reasonable?

Thanks for anybody's input

[Randy Eaton]

Hello Chelsea,

When I was selling manufactured homes I offered to help my customers that were looking for property for free. I felt by helping a customer find property I would probably get the sale. Not all my customers bought from me but the majority did. I would advise to find a real estate person to help you locate your property. If a sales center were willing to help you as part of their service I would allow them. But don't put money down until your property has been secured first.

Randy Eaton

[JohnnyJ]

In some states (Alabama included) it is illegal for a person to show you real
property unless they are: 1. An attorney or 2. A licensed real estate agent, or
3. The owner of the property.

Taking a finders fee might also border on illegal depending on your state.

[rmurray]

I am like Randy...This sounds like something they could do as a service...it is to their benefit as well as yours..no land..no sale..

The only reason I can think of for the mnoey is what you are saying and the fact that they might think you will comprimise more on location once you have committed..

[Chelsea]

Thanks for everybody's response. I have dealt with several real estate agents over the past few months and not one has shown me any land or even shown any interest in finding me a lot. A Horton Homes dealership hooked me up with a real estate person who is somehow related to one of the dealership's employees and even she didn't seem interested. I can't even get her to respond to my e-mails.

I've also been looking on my own, but haven't found anything.

Thanks for your help.

[John]

It is hard to get a real estate salesperson to take much interest in selling land unless it is expensive because they make so little. If they are in a 40% commission they get 40% of the 6-8% so if it's a 20K lot they make $500.00-$600.00 and most feel it is not worth their time. Either find one who is new in the business or go to an office and ask to look at their listings but it wll be hard to find one who will spend the time and drive you around to make so little. If it is a smaller town try the banks and see if they have anything on the books for sale.

[Dan F.]

Try Realtor.com for property listings and use the realtor to make the offer or to get directions to the lot.

[Chelsea]

Okay- thanks for the tip.

[Susi]

I am a Fleetwood Retailer and we do things a little backwards. I have made arrangements to have Realtors on staff to assit in the homebuying process. We suggest that you find the perfect property then find the perfect home. We have found this to be very successful.

We also suggest that a "good faith deposit" be placed on the home once the property has been located. This just assures us that the buyer is committed. This deposit is refundable should the financing fall. But should the financing go through and time has been spent and the buyer decides not to purchase, we will keep some or all of the "good faith deposit"

Thank you for allowing me to share. Good luck ! ! !

Susi