With many houses in South Florida from Jupiter to West Palm Beach at or nearing 20-30 years old, these sites are generally known as “teardowns”, “knockdowns”, or in more soothing terminology, “redevelopment properties”. In some situations, the agent will associate with a builder on a spec house, which although a conventional method of promoting real estate, it is not without threat.
An alternative to building spec homes is to promote a new house design on the lot, which gives the agent the choice of making a second MLS record to draw in a customer for not only the lot but for the new construction as well. This strategy removes the risk (and most likely billable lawyer hours) for all engaged and is becoming quite popular on prime waterfront properties.
In this case, the agent has extra marketing resources for his customer, and the general contractor/designer has an opportunity to network with realtors by offering a commission to the realtor on the new construction.