heathernken
Beach Lover
I bet the Joe house on crossvine circle could be had in the mid 300's per foot. On the market for 391 per foot now. Two others on the market under 400- one for 390 as well and one for 375.
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Buyer in Watercolor
- Thread starter HelloBeach
- Start date
Smiling JOe
SoWal Expert
Never know until you throw an offer at them. Just write it on the back of your business card.
I know someone who will sell you a real cheap lot in WC, on the east side of hwy 395, and you could build on it. Of course, if you dig about 8" down, you'll hit watery soil.
I know someone who will sell you a real cheap lot in WC, on the east side of hwy 395, and you could build on it. Of course, if you dig about 8" down, you'll hit watery soil.
Smiling JOe
SoWal Expert
Just checked the listings and surprise, surprise, there are five listed in WC under $400/sf. You can even by a pre-construction one priced at $337/sf. There you go.
heathernken
Beach Lover
So there you go!!
sell30a
Beach Comber
Joe - Have evidence. Anyone who wants a home in the 320-325/sq ft range in Phase 2 or 3 email me and I can tell them of at least two. The current asking price is several hundred thousand over this currently, but I know firsthand what they are willing to accept. I am not a realitor, just a very recent buyer.
I'm not predicting anything, but I do know that some of these homes cannot be re-built for this price on any lot in Watercolor. How long can the market stay irrational like this? Longer than the owners can stay solvent unfortunately - remember LTCM? at the end of the day, markets did converge, but the owners werent able to stay solvent to see that day.
Currently a savvy buyer can buy an existing home in Watercolor cheaper than they can buy a lot and build on it, pick a lot any lot. Eventually these price must converge and correlate, but they do not now. The market is irrational which creates buying opportunites for existing homes.
This principle does NOT apply to condos, price convergence is irrelevant because the average buyer cannot go out and built a condo.
Some sellers are currently willing to sell for a loss, but your going to have a hard time getting a builder to build on any lot for a loss down the road so If your waiting for CNN to tell you that the bottom has hit, you will be 12 months behind the curve.
I'm not predicting anything, but I do know that some of these homes cannot be re-built for this price on any lot in Watercolor. How long can the market stay irrational like this? Longer than the owners can stay solvent unfortunately - remember LTCM? at the end of the day, markets did converge, but the owners werent able to stay solvent to see that day.
Currently a savvy buyer can buy an existing home in Watercolor cheaper than they can buy a lot and build on it, pick a lot any lot. Eventually these price must converge and correlate, but they do not now. The market is irrational which creates buying opportunites for existing homes.
This principle does NOT apply to condos, price convergence is irrelevant because the average buyer cannot go out and built a condo.
Some sellers are currently willing to sell for a loss, but your going to have a hard time getting a builder to build on any lot for a loss down the road so If your waiting for CNN to tell you that the bottom has hit, you will be 12 months behind the curve.
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Your post assumes that the cost of construction does not fall and that the cost of lots doesn't fall. In actuality, the cost of construction is falling due to slackening demand for labor and materials. In addition, the price of lots has been falling for a couple of years now with no end in sight. If prices of lots and the cost of construction continue to fall, it will still be cheaper to build than to buy a resale. Finally, only a small fraction of the homes for sale in Watercolor, Watersound, Rosemary, etc. are priced below what it would currently take to buy a lot and build your own home. Most are priced well above replacement cost.
sell30a
Beach Comber
Yes, labor costs have come down 25% because contractors need the work, but material costs continue to go up. Lot prices are almost back to original Joe release price when you cost adjust them for inflation. So Your saying there's more pressure on lots and labor costs moving those prices down further, then there is to have a existing house sell for cheaper than it can currently be rebuilt.
I disagree with you. Even if your assume you can buy a lot today in the 100k price range, which you cannot, its still cheaper to buy an existing home. NOT all existing homes, but the ones priced aggressively
I disagree with you. Even if your assume you can buy a lot today in the 100k price range, which you cannot, its still cheaper to buy an existing home. NOT all existing homes, but the ones priced aggressively
If you are talking about the select few homes that are at or nearing foreclosure in Watercolor, you are correct. But, we are only talking about 4 or 5 homes out of 135 for sale.
On a broader basis, its still cheaper to buy a lot and then build than to buy a resale or new construction. Although there have been a few fire sales, most of the homes being sold in WC are going for well over $400 per square foot and some are over $500 per square foot (most recent two closings were at $564 and $620 per square foot). My contractor friends actually tell me that the cost of lumber, concrete and other materials are falling. So, longer term, it should still be cheaper to build (in general excluding fire sales). That said, building is also a major hassle, so many people are willing to pay a premium to buy a resale.
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Smiling JOe
SoWal Expert
and 72 Thicket Cir went under contract today, list price at $849,000. This is the one which is located next to 62 Thicket Cir, which went to auction unsold. I bet it didn't go for less than around $400/sf since it was one of the least expensive homes listed in WaterColor.