What is the market value of new construction?
When you're selling an older house that needs work you find comparable properties and price accordingly. When you're selling a rehab you can have a higher asking price because of the value you added. My question is when a new property is built on a new plot, what makes it worth having been built.
Say you buy a similar sized lot (to the lots around it) in a 300k neighborhood. You have a similar home built there with the intention to immediately sell it. After all the permitting, materials, labor, and associated cost are payed the total cost was $290k.
In this case would the market value be determined only by demand for that area? I assume there would be at least a slight premium for new construction too, how much?
If there's key information missing or some of my assumptions are wrong, just make some up.
This is my first post - I tried googling this.
As I wrote this I realized:
-individual homes are normally custom built with the intention for the owner to live and enjoy that house, so a lone house being built to sell is unlikely. housing developments add scale