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Terra Mesa Resort - Mothballing a project effects current owners

 

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*

                       

                                                                                                                                                                              Your-White Mountain New Hampshire real Estate Expert

                    steve@alpinelakes.com toll free 800-926-5653 /cell 603-381-7898

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Comment balloon 6 commentsSteve Loynd • May 14 2012 09:59AM

Comments

This developer has a terrific location and long term there is no reason to think this project can't be a home run, but they don't talk to the locals in New Hampshire - while they operate out of Texas.

Posted by Steve Loynd, 800-926-5653, White Mountains NH ( Alpine Lakes Real Estate Inc., ) about 8 years ago

Steve..... they need you to market that property..... the bigger they are, the harder they fall...

Posted by Barbara Todaro, Marketing Agent for The Todaro Team (RE/MAX Executive Realty ) about 8 years ago

Barbara...I agree - but there is no need to make everyone nervous, just go independent contractor (Realtor) and save money on a paid sales staff.

Posted by Steve Loynd, 800-926-5653, White Mountains NH ( Alpine Lakes Real Estate Inc., ) about 8 years ago

Steve, you could have your work cut out for you, but you could come out the winner with a bit of luck.

Posted by William Feela, Realtor, Whispering Pines Realty 651-674-5999 No. (WHISPERING PINES REALTY) about 8 years ago

Bill, I was once a member of the ARB (Archetech's review board) - my parent company has built over a dozen homes here, and I have sold more properties in this subdivision than anyone in the past 3 years there...no luck - hard work.

Posted by Steve Loynd, 800-926-5653, White Mountains NH ( Alpine Lakes Real Estate Inc., ) about 8 years ago

Steve, hard work...you hit the nail on the head.  Hey it sounds like you have a great workable plan...that may be the problem...it all makes too much sense!

Posted by Nick T Pappas, Madison & Huntsville Alabama Real Estate Resource (Assoc. Broker/Broker ABR, CRS, SFR, e-Pro, @Homes Realty Group, @HomesBirmingham & Providence Property Mgmnt, LLC Huntsville AL) about 8 years ago

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