Thirty cents on the dollar? Yes, maybe. A couple of months back a former client of mine called. He wanted to know if I had a suggestion for a lender to finance a piece of land because he wants to build again.
Alex is a fireman and just three years ago he completed his two and a half story home overlooking the city. Although not planning to build right away, Alex was quite interested in what appears to be good deals on land. I was able to find him a lender and within a couple more weeks he had made a deal on a nice view lot in another part of town. He was very happy about purchasing a lot in an upscale neighborhood for about one third of the price it sold for just a couple years back.
Buying Your Dream Home-Building Parcel
If you're thinking about building, would now be the time to buy that lot? Picking a market bottom is tricky business. One third the price? Well, first off, that opportunity isn't going to be there for everyone. But, would half the price be good? Would a fifty percent reduction be good? Perhaps these would be good deals but only time will tell. And it pays to remember that the prices of two and three years ago were often inflated prices, not real values.
The Value of Your Dream Home is Anchored in That Dream Lot
When you're looking for the parcel of land to put your dream home on, the most important factor for its future value is the value of the land itself. You don't just want a steal of a deal. You want a good deal on a good piece of land.
It's all about location as any experienced real estate agent will tell you. What is the neighborhood like? What are the views? What amenities are close by? These factors are important in good times and bad, but it's worth reviewing now. If you're interested in long term value, appreciation, and future equity, don't be lured in by a screaming deal if it's not in a good location.
Why Now Could be the Time to Buy
If I were in the market to build a home, I'd be looking. I'm not suggesting it's the bottom of the market but in the long haul, you're probably in good shape if prices have come down significantly in your market. Here's why:
- Speculators that bought at the end of the bubble need to get out even if it's at a loss.
- Contractors and spec builders that would normally be buying these lots to build a spec home for resale are not buying now.
- Not as many lenders are lending on land making it more difficult for land purchases.
- Few custom homes are being built, so demand is down.
Now might be the perfect opportunity to get a building parcel in a location that far exceeds what you could have afforded before. Find a real estate professional to work with and start assessing your market. That's what Alex did and he found the perfect lot for his future dream project. You could too. Happy searching!
You can learn so much more about home building and remodeling online. One great option is to take advantage of a very informative yet simple to follow *free* e-course that you can find by clicking here http://www.DreamHomeCreation.com You will also find other tips and tools, surveys, videos, and additional articles by Mel Inglima.
Nema komentara:
Objavi komentar