v During declining periods in the real estate cycles of the past decades, builders and land developers have always looked to "lot build-outs" as a way to market vacant lots.

v Down cycles are always characterized by government stimulus programs to get the housing market moving again.  For example, the current low interest rates.

v Low mortgage rates and grants become available for houses, but not for lots.

v Homes sales over $400,000 for Salt Lake, Davis & Utah Counties over the past 5 months  =  606 SOLD

v Lot sales for $180,000 and over for Salt Lake, Davis & Utah Counties over the past 5 months  =  20 SOLD (average of 4 per month; seller received about 81% of listing price which was reduced and priced according to current market conditions)

v Home sales have outsold lot sales by 30 to 1

Conclusion-There is currently a much higher demand for houses than for vacant lots in the price ranges indicated.  The lower price range $150,000 to $400,000 is even more active.

v From January 1, 2008 to June 1, 2009 Cameo Homes has SOLD over $5,000,000 in New Homes
v During the same period of time, our lot sales have been slow, consistent with overall market activity

SELL or HOLD?
  1.  Hold lot indefinitely for a sale when the market picks up.  If the money invested in the lot isn't a problem, waiting could payoff.  In some markets it may be a long wait.
  2.  Continue in your current marketing strategy for selling a vacant lot- the odds are low without a good marketing program
  3.  Pursue a lot build out: Promote a package sale of your lot to a buyer with a new home on your lot designed right, priced right and built right
  4.  Build a speculative home with your financing resources


Cameo Homes has identified six key elements that contribute to the potential for a successful lot build out effort.  Combined with our statistical data, market strategies, building plans and a wealth of building experience we can offer you an alternative or additional ways to sell you vacant lot.  If you would like to meet and explore whether this might work for you, please contact us for an appointment (OR Call 801-296-9700).