Build versus Buy

Convince some of your clients who are stuck in 2005 to lower their prices? There's plenty of inventory out there to work with.

The majority have and have sold.

You are correct if you want to pursue a short sale and wait 6-8 months to find out if you get to buy it.

What does BobbyJ think? Anyone who owns a lot might want to build on it with the idea of selling it.

Dead on. I have 4 offers sitting in front of me right now of cheaper lots and over 10 under contract with visions of building... Why? They can't find homes that fit their needs or the land and cost of construction are to enticing to not build.

The majority have and have sold.

You are correct if you want to pursue a short sale and wait 6-8 months to find out if you get to buy it.

Care to post some inventory vs. sales numbers to back that claim up?

Care to post some inventory vs. sales numbers to back that claim up?

My team is feel very blessed right now with a tremendous amount of inventory under contract.
I probably misspoke when I said the majority have and have sold. I would have to go back to my personal inventory and see if my sales and pendings are 2005 clients or not. I guess I just get a little excited about Real Estate. I love this business and stoked to see it changing. I am not sure I would feel comfortable giving you a break down of my personal transactions online but if you would give me your email I would gladly send a break down to you.

My team is feel very blessed right now with a tremendous amount of inventory under contract.
I probably misspoke when I said the majority have and have sold. I would have to go back to my personal inventory and see if my sales and pendings are 2005 clients or not. I guess I just get a little excited about Real Estate. I love this business and stoked to see it changing. I am not sure I would feel comfortable giving you a break down of my personal transactions online but if you would give me your email I would gladly send a break down to you.

Just dig into the mls and give us the following generic figures, for areas 14,15,16,17,18:

sept, oct: inventory, single family homes
sept, oct: single family sales

We can latch that onto the end of Josh's graphs.

Josh's Blog

As of August, inventory was still at all time highs. I did an off the cuff search of emerald coast online and found inventory between Destin and Inlet still very high, around 1900 properties. Sales are probably, what, 75 per month? That conflicts with your statement that all properties in the south walton area have cleared.

We don't have access to the mls, so folks like you are who we rely on to give us the straight scoop on current market figures. That's really all people want, and need, when considering purchasing or selling.

Where did I say all properties in South Walton have cleared?

Just dig into the mls and give us the following generic figures, for areas 14,15,16,17,18:

sept, oct: inventory, single family homes
sept, oct: single family sales

We can latch that onto the end of Josh's graphs.

Josh's Blog

As of August, inventory was still at all time highs. I did an off the cuff search of emerald coast online and found inventory between Destin and Inlet still very high, around 1900 properties. Sales are probably, what, 75 per month? That conflicts with your statement that all properties in the south walton area have cleared.

We don't have access to the mls, so folks like you are who we rely on to give us the straight scoop on current market figures. That's really all people want, and need, when considering purchasing or selling.

I have often said on these boards that Real Estate is very local in nature and a market can be different 2 miles away or less. To look at all the areas you requested would be misleading and a very confusing way to look at a market. I tend to be more specific when I look. I learn more and I can begin to see trends this way. Why would one look at areas 14,15,16,17,18 at one time? That would not tell you anything about this type of market. If you are looking to buy you have to know or understand what the areas are individually and what real inventory is. I took a brief look at areas 17 and 18 which is the 30a area. Maybe on my earlier post I should have clarified what market area and price ranges I was talking about. As I randomly sometimes post something positive about the market maybe I should be more specific about what areas I am talking about. Some on the boards get really upset if something is posted positive about Real Estate. I apologize, it is my nature. I will say that north of 98 is struggling and will surely have a ways to go. I have noticed in areas that are still hurting price adjustments have not been made as radical as they have on the beaches. You would have better luck finding a great deal off of 30A then you would in Pt. Washington. Anyways, taking a brief more specific look at 17, 18 under $400,000 we find 90 listings. Of these 90, 38 are legit and something I would possibly show to someone. But…. This can even be broken down further by simple location. I am probably being liberal when I say 38. When I look at how many have sold under $400,000 since 09/01/2009 I find 28 sales. Hmmmmmmm …… I see a trend here. You may randomly see 90 listings but many of them are not even in the proper areas, short sales, mobile homes, etc. I can narrow the search down in seconds and once a client tell me what they like it gets narrowed down a lot more. Suddenly, 90 listings are down to 15. We watch these 15 for a few weeks and they are “gobbled up”. Are more coming? You bet. But you can also bet when you begin to break down each area the load of inventory is not as great as you think it is. In my ten years of doing this I have never had a buyer ask me to look at areas 14,15,16,17,18 at one time. That would be pointless.

I have often said on these boards that Real Estate is very local in nature and a market can be different 2 miles away or less. To look at all the areas you requested would be misleading and a very confusing way to look at a market. I tend to be more specific when I look. I learn more and I can begin to see trends this way. Why would one look at areas 14,15,16,17,18 at one time? That would not tell you anything about this type of market. If you are looking to buy you have to know or understand what the areas are individually and what real inventory is. I took a brief look at areas 17 and 18 which is the 30a area. Maybe on my earlier post I should have clarified what market area and price ranges I was talking about. As I randomly sometimes post something positive about the market maybe I should be more specific about what areas I am talking about. Some on the boards get really upset if something is posted positive about Real Estate. I apologize, it is my nature. I will say that north of 98 is struggling and will surely have a ways to go. I have noticed in areas that are still hurting price adjustments have not been made as radical as they have on the beaches. You would have better luck finding a great deal off of 30A then you would in Pt. Washington. Anyways, taking a brief more specific look at 17, 18 under $400,000 we find 90 listings. Of these 90, 38 are legit and something I would possibly show to someone. But?. This can even be broken down further by simple location. I am probably being liberal when I say 38. When I look at how many have sold under $400,000 since 09/01/2009 I find 28 sales. Hmmmmmmm ?? I see a trend here. You may randomly see 90 listings but many of them are not even in the proper areas, short sales, mobile homes, etc. I can narrow the search down in seconds and once a client tell me what they like it gets narrowed down a lot more. Suddenly, 90 listings are down to 15. We watch these 15 for a few weeks and they are ?gobbled up?. Are more coming? You bet. But you can also bet when you begin to break down each area the load of inventory is not as great as you think it is. In my ten years of doing this I have never had a buyer ask me to look at areas 14,15,16,17,18 at one time. That would be pointless.

BobbyJ, you know your stuff. Please check your PM

All of 30A is a pearl, but the west end is as you say, a diamond waiting to be polished. Have you looked at Draper Lake Coastal Village and some of the other communities in Blue Mtn? There are some true deals on that end. We have built over 50 homes along 30A, would like to talk with you about building for you and your family.

As a builder I agree with BobbyJ, BUILD!!!

We are looking at the possibility to do a few 2000 sq ft spec homes on the west end in the $150ish a sq ft range because alot of folks coming from out of state want to buy a new house already built. I think the demand for that is going to be here by next spring.
What does BobbyJ think? Anyone who owns a lot might want to build on it with the idea of selling it.

It seems to me that this math is further to my earlier assertions. As long as builders can build spec homes well below the comps for existing homes the banks will be forced to keep lowering their asks to find a bid, assuming there is sufficient raw land inventory.

I have often said on these boards that Real Estate is very local in nature and a market can be different 2 miles away or less. To look at all the areas you requested would be misleading and a very confusing way to look at a market. I tend to be more specific when I look. I learn more and I can begin to see trends this way. Why would one look at areas 14,15,16,17,18 at one time? That would not tell you anything about this type of market. If you are looking to buy you have to know or understand what the areas are individually and what real inventory is. I took a brief look at areas 17 and 18 which is the 30a area. Maybe on my earlier post I should have clarified what market area and price ranges I was talking about. As I randomly sometimes post something positive about the market maybe I should be more specific about what areas I am talking about. Some on the boards get really upset if something is posted positive about Real Estate. I apologize, it is my nature. I will say that north of 98 is struggling and will surely have a ways to go. I have noticed in areas that are still hurting price adjustments have not been made as radical as they have on the beaches. You would have better luck finding a great deal off of 30A then you would in Pt. Washington. Anyways, taking a brief more specific look at 17, 18 under $400,000 we find 90 listings. Of these 90, 38 are legit and something I would possibly show to someone. But?. This can even be broken down further by simple location. I am probably being liberal when I say 38. When I look at how many have sold under $400,000 since 09/01/2009 I find 28 sales. Hmmmmmmm ?? I see a trend here. You may randomly see 90 listings but many of them are not even in the proper areas, short sales, mobile homes, etc. I can narrow the search down in seconds and once a client tell me what they like it gets narrowed down a lot more. Suddenly, 90 listings are down to 15. We watch these 15 for a few weeks and they are ?gobbled up?. Are more coming? You bet. But you can also bet when you begin to break down each area the load of inventory is not as great as you think it is. In my ten years of doing this I have never had a buyer ask me to look at areas 14,15,16,17,18 at one time. That would be pointless.

Limiting your search to 400K or less filters out all the over priced property. I guess we got off track somehow. I count almost 1000 properties for sale, under 900K, in the SoWal area.

Where did I say all properties in South Walton have cleared?

Right here -

Convince some of your clients who are stuck in 2005 to lower their prices? There's plenty of inventory out there to work with.

The majority have and have sold.

Limiting your search to 400K or less filters out all the over priced property. I guess we got off track somehow. I count almost 1000 properties for sale, under 900K, in the SoWal area.

Too random of a look. A good way to start and show lots of inventory still on the market but unless you dig in really has no meaning to a specific buyer.

That conflicts with your statement that all properties in the south walton area have cleared.

I never said this. You are twisting words. I was speaking specifically of my own personal buyer portfolio from 2005. "The majority have and those that have have sold." How do you turn that statement into me saying all properties have cleared? This would mean I sold all the property in 2005 in this area. I really think we are have a communication break down.

If you would like to come by my office and go over my 2005 buyers you are more then welcome. I would also like to be clear that these 2005 buyers that have sold did not walk away with checks or a big smile on their faces.

I never said this. You are twisting words. I was speaking specifically of my own personal buyer portfolio from 2005. "The majority have and those that have have sold." How do you turn that statement into me saying all properties have cleared? This would mean I sold all the property in 2005 in this area. I really think we are have a communication break down.

If you would like to come by my office and go over my 2005 buyers you are more then welcome. I would also like to be clear that these 2005 buyers that have sold did not walk away with checks or a big smile on their faces.

I'm not twisting anybody's words I just think there was a misunderstanding. Generally I think we agree, there is a lot of inventory, but little of it is saleable due to price. It will take time for the whole thing to unwind, during which a steady stream of reo's will continue to flow into the market.

I think building is cheaper compared to buying.

Build people build

I think building is cheaper compared to buying.

Thank-you Michlele.
There are so many nice lots for sale at an affordable price now,we will build what you want, within your budget, in a timely manner. We've been building along this Coast for 25 years!!! Cottages to award winning Showcase Homes!!

David W. Thomas Homes, LLC
e-mail: ffimg1@aol.com

Horton, how did you arrive at the $200 per/SF building cost? Thanks.

That is my guestimate based upon historical posts in this forum. Also both melscuba and Franny indicated $200 to $225 per/SF in this thread. That is for the structure and does not include raw land or land improvements/landscaping.

I am open to additional feedback on the subject. For example one issue I have considered recently is the question of architect fees. They could add $50,000 to $100,000 or more to the cost of a project if you are required to develop a unique plan. I'm curious to hear if anyone agrees with this range.

I spent about $25k on a renovation plan for an existing home a few years ago just to get to the bid stage with a builder, so I suspect the fees for a unique plan for new construction that is taken to completion could easily approach $100k.

Thoughts anyone?

I think building is cheaper compared to buying.

For us it is. And to get what we want it is. We are well within budget, designed our own plans and doing some things ourselves. Our contractor is amazing. So glad we went this route.

G

Can anyone estimate a reasonable cost per square foot to build a house in Watersound Beach ? Granite, high end appliances ( viking and subzero ), fireplace, lots of wood on the walls, hardwood floors ( probably red or white oak stained )and either hardy board or wood shingle exterior. Just the cost to build....not architect fees or landscaping or the lot cost. Thanks.

It really depends on the house - but I would think that if you worked w/ your contractor and architect you could easily do something vanilla for $200-250 these days.

That must be one of those fancy vanillas. You should be getting the works for $200-$250 in construction cost.

You are right Josh

That must be one of those fancy vanillas. You should be getting the works for $200-$250 in construction cost.

Those costs are right on!

We are a custom builder and can build a home with beautiful custom finishes and meeting all the codes for building a structure on the Coast.

I am talking about WaterColor and WaterSound where we must go through the ARB, Architecurial Review Board

Goofer wanted a price for Watersound Beach w/ granite, viking and subzero appliances, a fireplace, lots of wood on the walls, and oak floors.

IMO that's $200-250 a sqr ft and can be quite a bit more depending on specific design features and finishes.

Goofer wanted a price for Watersound Beach w/ granite, viking and subzero appliances, a fireplace, lots of wood on the walls, and oak floors.

IMO that's $200-250 a sqr ft and can be quite a bit more depending on specific design features and finishes.

I think in using the term "vanilla" it might be taken as "cookie cutter", bland style home. None of those features sound too bland. Quite spectacular in fact... even in Watercolor! ooh ooh, I want a fireplace on my screened in porch while we're talkin'.... surfaced with oyster shells. P.S. I'm finding the $200.00 + per sq. foot for build out, with these features, to be about right.