Build a spec home or just sell the vacant lot

[John Kai]

I need some direction from members.  I am in the process of subdividing an existing 9+ acre property into 4 individual lots:

• Lot 1: primary residence - includes an existing 3,000 sq ft, custom home built in 2006.  Zillow estimated value is $767K and will sit on 2.9 acres
• Lot 2, 3, & 4:  Comprise of 2 acres each.
• All lots will include water, cable, electricity and ocean views.

My dilemma is whether or not to build a spec home on the vacant lots and sell them for a higher end value?  A 2-acre lot with all utilities, ocean views has an estimated market value of between $200K-$275K.  New construction per sq ft costs are running on average $125-$150/sq ft.

What would you do and why?

Thanks for your help.