I was on a listing appointment yesterday for a beautiful waterfront lot. During the appointment the subject of how to price the lot was discussed at length. The sellers wanted to price the lot at a price which I considered to be too high. I explained to the sellers that the price has to make sense to a buyer. What I mean by this is that you have to factor in the price of the lot, the construction of the home itself, well and septic installation, permits, etc. When you add all of those together are the costs at or below the cost of what the buyer would spend on a preexisting home? If it is significantly higher it just isn’t going to be a financially wise decision for the buyer.
The fact is that you can often get a better deal if you buy an existing home. You don’t have to factor in all of the additional expenses to build a home. That being said, if you find the lot which is ideal for you and it is at a price point which would still allow you to build your dream home it is definitely something to consider. Many people find that there is nothing more satisfying than visualizing their dream home and making that dream a reality with a home which is exactly what they want and one in which no one else has ever lived. So certainly don’t rule out this option. Just make sure you are getting a good deal by having your agent look up recent home sales to determine the value of homes in the area. If those homes are selling at or near what your expenses to build will be go for it!
