For smaller builders who buy their own lots, finding land is a constant concern. But in the Columbus, Ohio, area, it’s grown a little easier, thanks to builder Mark Braunsdorf’s efforts. As part of his involvement with the Building Industry Association of Central Ohio’s Next Generation Builders Committee, he started a successful “lot exchange”program. Twice a year, a group of 40 to 60 local builders and developers gather to share information on available land. The meeting gives the developers a chance to advertise their for-sale lots to builders, and the builders get achance to learn what kinds of properties are on the market.
Additionally, it provides both parties with an opportunity to network, which younger builders such as Braunsdorf particularly welcome. “The lot exchange has allowed builders and developers to get to know each other,” he says. “I hear a lot more information now than I used to. … It used to take 10 to 15 years to get to know all the developers in town.” Along with the twice-yearly summits, the lot exchange also boasts a strong online presence through the BIA’s Web site. Users can post for-sale lots themselves and can monitor the market at their convenience.
The program benefited builders when the housing market was red-hot and land was scarce. Now, it especially appeals to developers trying to sell off lots. Its popularity shows that small and medium-sized companies can gain from banding together. “Competition was never really a concern, because none of us individually could attract that attention from developers,” Braunsdorf explains.
Compass Homes Inc. Powell, Ohio; Type of business: custom and spec builder; Years in business: 8; Employees: 5; 2007 volume: $3.2 million; 2007 starts: 10
