Should I take a developer up on the offer of a free vacation?

Q:What’s your take on free vacations to look at a new development? A good deal?A: No. Not at all. Pay attention to the “If it’s too good to be true” cliché, it will serve you well. Most of these developments are formed by large investors forming a partnership for the sole purpose of profit. Future considerations are of little interest.

Many make promises of luxurious amenities such as golf courses, pools, nature areas etc. What the fine print reads is that many of these enticements are not guaranteed until 90% of the lots have been sold. So if the developers sell 80% of the lots they’ve probably already made more than enough profit to walk away without investing any more money in the ‘promised’ perks of buying.

That leaves you with a lot on a nearly worthless piece of land.

Beyond promises of luxury there is the assurance of utility. Again, if a development sits on unincorporated land then a city has no obligation to provide for sidewalks, streetlamps and the like. That’s if the land is even able to hold a house. Never forget that the developers’ idea of a ‘building site’ could be a mountain goat’s idea of heaven.

It’s better to wait and see what a development looks like in at least its initial stages. Often times an artist’s concept is just that, a concept.

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For more information on estimating your future taxes, pick up a copy of Finding & Buying Your Place in the Country by Les Scher at Amazon.com.

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