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February 25, 2013

Bank’s Foreclosure Met by Significant Demand

Thanks to our history of success with an area bank in selling improved properties returned to it, that bank came to us with a new assignment: sell 106 fully developed lots, a single project. The 60-, 70-, and 90-foot lots, plus two condominium pads with all roads and utilities, were located in Genesee County’s Fenton Township.

Fenton Entrance

It was an assignment we accepted with enthusiasm! We’d had a lot of positive reaction in recent months from builders looking to purchase developed lots, both individual and grouped lots. We’d been watching the demand for developed residential lots rise to a six-year high in many areas of the southeast Michigan market and seen single-family housing statistics shoot up. For example, Oakland County had a 51% increase in new homes starts between 2011 and 2012, while Livingston County recorded a staggering 115% increase.

For the Fenton Township project we drew on our database that captures and differentiates home builders from residential developers. We then quickly identified all active home builders pulling housing permits in the area and notified them of the opportunity. Several interested builders responded to our marketing efforts. We worked with the most serious respondents and from them procured two solid purchase agreements. Our subsequent negotiations ended in a favorable deal for the selling bank: a 60-day, all-cash closing on all 106 developed lots.

This project is a harbinger of things to come. Demand for lots is going to continue to rise while the supply is small. Soon builders and developers will begin looking for vacant land for their single-family developments. We at the Thomas A. Duke Company are well positioned to market both developed lots and vacant land to rising market demand.

To learn more about how we can help you successfully market and sell your property, please email Joseph Tuomikoski (jtuomikoski@thomasduke.com) or Philip Wojtowicz (pwojtowicz@thomasduke.com) or call (248) 476-3700.

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