Should I sell my lot or build on it and sell it
I own a lot that I paid $41,000 for and can sell it for $95,000. Or I can build a house on it that will cost me all in $250,000 and sell it for $400,000. If I add the cost of the lot to my building costs , the number is $291,000 yielding a profit of $109,000 vs a profit of $54,000. Adding in 5% for the carrying costs , its about $10,000 more to build..so the difference in profit is $99,000 to build and sell vs. $54,000 to sell the land. What analysis would you use to decide the best approach? Thanks