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?
Any insights would be appreciated!
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...
Thanks @J Scott . I'll work on getting some different pricing options from my builder and see if I can find an appraiser to help me out.
Find the closest new construction home to where you plan to build... then think about why no other builders have ventured to where you want to build.