When a developer is having issues it can cause troubles for the existing inventory in a subdivision. Terra Mesa Resort – a Texas based resort developer recently closed shop on its marketing effort at one such subdivision here in New Hampshire. Well crafted – letters went out, “it’s the market” excuse…Ok we get that. But putting in place safety nets for the current (conveyed sites) owners need to be considered before you close the doors.
One of the newly unemployed staff was in charge of an Architects review committee. This means anyone wishing to submit plans to build a home on a site that was already sold over the past 7 years, can’t get an approval to build. This also means home-sites being re-sold, can’t guarantee when a construction start could commence (effectively making existing lots that are for sale, un-buildable).
Are these concerns felt by the minority (just a few vacant site owners) or should we all worry about this turn of events? While the 100 current owners have a warranty deed to the property they enjoy, the master plan called for more than 600 additional mixed use residential units being built. While someday they very well maybe built…will they be of the same size and quality as the first group? Will promised amenities be scrapped for the sake of “the economy”? Will the dues on the few remaining developer owned sites get paid to the association’s dues and general maintenance fund?
One thing is for sure when a developer moth-balls a partially completed project it has an effect on the existing property owners. I have several ways to fix this dilemma if you want to know? #1) appoint a current home owner to the voluntary position on the ARB (architects review board). #2) hire a Realtor to list your existing inventory (we’ll undertake the marketing effort for a commission as an independent contractor – with no additional employees required). #3) subordinate a couple of home-sites to one or more of the builders who have already put up more than a dozen homes on the property (new construction shows growth and solves a lot of current anxiety –real or imaginary) and you’ll get the land pay-off when the homes sell. And #4) look at the current budget to see where some fat can be trimmed, if owner’s dues go down a bit – during this quiet re-work you will endear yourself to them – and them to you. While the market is down , there is a way to make the existing home owers less nervous than...doing nothing at all.
*Pictures of South Mountain slope side and riverfront locations*