To build or not to build...long post within

[MrDudeMan]

Originally posted by: Elbryn
another option is to just hold onto the plot of land for a few years. if land values continue to rise, you can always sell it later for more money. or build a house on it with the intentions to sell later. if the homes in that area are with 300k and your build cost is 200k, there's some money to be made as well.

This is exactly what I would do.

 

[BUTCH1]

Are there interested buyers for the current house??, don't want to get stuck with 2 payments...

 

[lupi]

If you can make yourslef a real sweetheart deal in selling the land I'd strongly look at it, but I would also still be looking to buy another property or already built house to move into in the future.

 

[rasczak]

Originally posted by: vi edit

Originally posted by: Fenixgoon
is there any reason why you need to go through a realtor to sell either your house or the lot? also, how bad is your current 12 mile commute? any way to check out what kind of loans you'd get if you were to build a new house? good luck with things

The lot would be a private party transaction. But selling my home wouldn't be. Only two sellers go FSBO and have it work. Desperate people, or people with "budget" homes. $270k is hardly budget for my area. And we aren't desperate.

the FSBO could be seller financed through you at a 10% interest rate (or negotatiate), then you could become an investor. or rent the place out.

 

[alkemyst]

What realtor fees? You already own the lot, you paying someone to sell you a house you want to build?

 

[alkemyst]

Originally posted by: vi edit

Originally posted by: oldsmoboat
What realtor fees?

Selling of existing home.

My current home appraised at $270k a few months back. 7% of that is just shy of $20k. That's money pissed down the drain. Obviously that part hasn't changed and was a known prior to buying the other lot, but now that I have an option on the table I'm second guessing how much I want to get out of the current place.

why pay 7%? 6% was a standard and now more like 3%

 

[vi edit]

Originally posted by: alkemyst

Originally posted by: vi edit

Originally posted by: oldsmoboat
What realtor fees?

Selling of existing home.

My current home appraised at $270k a few months back. 7% of that is just shy of $20k. That's money pissed down the drain. Obviously that part hasn't changed and was a known prior to buying the other lot, but now that I have an option on the table I'm second guessing how much I want to get out of the current place.

why pay 7%? 6% was a standard and now more like 3%

That must a be regional thing or things have *really* changed in the last couple years. I sold a house around 3 years ago and it was 7% for a decent realtor. There were others cheaper, but she flat out said that she'll move my house faster because the buying agents will get more money working through her.

Sure enough, there were other virtually identical homes in my neighborhood selling for less than mine and they sat around for months with no sale. Ours went in less than a week. When you factor in what you'd pay in extra mortgage payments over that no-sell period it really didn't cost us any more in the long run.

*shrug*

 

[alkemyst]

whore it out.

 

[RaistlinZ]

Originally posted by: MrDudeMan

Originally posted by: Elbryn
another option is to just hold onto the plot of land for a few years. if land values continue to rise, you can always sell it later for more money. or build a house on it with the intentions to sell later. if the homes in that area are with 300k and your build cost is 200k, there's some money to be made as well.

This is exactly what I would do.

Ditto. Just sit on the land for a bit. There's no need to make a hasty decision. You said the land is real nice and in a great neighborhood. Hell, I wouldn't even consider selling it unless the dude is offering 2x what you paid for it.

Land is scarce. Whore that shit out like alkemyst said

 

[wiredspider]

So how much is the guy offering for the lot?

 

[xanis]

Alright, I admit that my knowledge of real estate is little to none, but humor me for a minute.

Let's assume that you can sell your current home for $270K. Hell, let's account for a little depreciation and say $250K. If you can pull off a FSBO and construct a new house for what, $200K, you'd still come out ahead with a pretty decent profit.

Again, I don't really know what I'm talking about here, but it seems like it makes sense. Someone correct me if I'm wrong though.

 

[zinfamous]

Originally posted by: MrDudeMan

Originally posted by: Elbryn
another option is to just hold onto the plot of land for a few years. if land values continue to rise, you can always sell it later for more money. or build a house on it with the intentions to sell later. if the homes in that area are with 300k and your build cost is 200k, there's some money to be made as well.

This is exactly what I would do.

me too.

another couple of years means that much more time to bury even more dead hookers on the lot. Then when you sell it, the buyer gets pinched for your dastardly addiction.

oh, I think I've said too much...

/shifty eyes.

 

[vi edit]

Unfortunately "sit on the land" isn't much of an option. As with many subdivisions, there's a "must build by" clause where I have to start construction within 3 years of purchase.

If I don't start building by October, 2011 then the developer has the right to take the lot back at the sales price. We weren't planning on doing anything until next fall.

 

[Brigandier]

Build. Disclaimer: I am a civil engineering major. New houses are much more energy efficient and you live in the modern age why not enjoy a modern house? Unless, of course, you want to kill the planet. It's up to you.

 

[lokiju]

How much property does your current home sit in? Land is a huge thing for me and I'd easily take the better lot if given the option. If I were you and did sell it I know I'd be kicking myself down the road.