Rental Property Investor · Stafford, VA · Member since 2013 · 3 posts · 0 votes
Hey guys,
I'm working on the math to see if buying a lot and building a new house (or two) makes sense.
Here's the issue I'm running into -
I'm trying to figure out how to estimate what the new home(s) will be worth. The neighborhood I'm looking at is mostly comprised of houses built around 1970. 3 bed/2 bath and between 1200 - 1800 sqft. After talking with a builder, my plan would be to build a 3 bed/2 bath house around 1200 sqft. My agent sent me a few comp examples, but also mentioned that new construction would be worth more than the 1970s houses. Is there a good way to estimate the difference in value or should I just play it conservatively and do my math assuming my build will be worth the same?
Investor · Sarasota, FL · Member since 2008 · 17k+ posts · 17k+ votes
8y
Find a good agent or appraiser who can estimate the value for you.
Also, consider that building a bigger house tends to be less expensive (per square foot) than building a smaller house, simply because you have more empty square footage. But, bigger houses can often sell for the same amount -- or more -- per square foot.
You should do the math yourself, but something to consider...
Investor · Sarasota, FL · Member since 2008 · 17k+ posts · 17k+ votes
8y
Find a good agent or appraiser who can estimate the value for you.
Also, consider that building a bigger house tends to be less expensive (per square foot) than building a smaller house, simply because you have more empty square footage. But, bigger houses can often sell for the same amount -- or more -- per square foot.
You should do the math yourself, but something to consider...
Professional · Brecksville, OH · Member since 2017 · 43 posts · 9 votes
7y
@Matt Rexrode
Learn the market, a good real estate agent will be able to see if there is enough demand for the
right product based on the price point of the most desired target market. Learn prIce per square foot both In the resale and new constructIon market
Brett