Any rough developer cost estimates to build new 2 unit home?
Hypothetical question - my parents own a old smaller home in a nice location in the city. Can anyone tell me what they think general ballpark/rough estimate would be for the amount that a good developer would charge to tear down and build a new 2 unit multi-family (assume the home is already zoned appropriately - I'm pretty sure it is).
Basically thinking in the future if it's possible since parents already own the home and land, if we could tear down their old house and build two nice units with above average finishes (let's say ideally a duplex up and duplex down, both being 3bed/2bath OR doing a 3bed/2bath duplex down and then just a 2bed/1-2bath simplex on top). I know nothing about home building/development, so would love to hear thoughts as to what the cost of this would be from a developer? Obviously I know they want to make $$ too and I don't know what the margins are typically for building. Am I looking at something like 700k? 900k? 1.5m+? Would developers be interested in taking on a request like this from a random person as long as the price is right for them? Or are there other hoops to jump through and roadblocks I'm not thinking of?
I typically have seen modern newly built 3bed/2bath condos being sold for 500-700k a pop in the city, so if I already have the home/land myself, does that make it easier for a developer in any way? And would they be willing to take on a project for a lower overall profit to them maybe if it's working directly with a customer? Rather than the developer just building 3 units and then putting them on the market to sell to random buyers (although, all these 500-700k condos still seem to go very fast in the city)