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Matt J

SWGB
May 9, 2007
22,670
2,817
I think the ultimate big difference is Cassine is almost built out where Cypress and The Preserve, etc are saturated with vacant lots.

That and the overall location. I can guarantee you would have vastly different buyers in both locations. Not financially, but what they are looking for.
 

fisher

Beach Fanatic
Sep 19, 2005
822
76
That and the overall location. I can guarantee you would have vastly different buyers in both locations. Not financially, but what they are looking for.

Based on actual sales data, not just conjecture and opinion, it appears to me that houses and lots in all three subdivisions have been selling at about the same prices over time.
 
I agree with you. But, the point I was trying to make is that prices for raw lots are plummeting. BOTH of these developments now have lots going for $100k and lower. And, yes Cypress has much, much nicer homes and amenities than Cassine, but a longer distance to the beach. Bottom line, lot prices (and soon home prices too) are falling to 2000ish levels with farther to go.

I'm seeing it the same as Fisher on this one.
 

Bobby J

Beach Fanatic
Apr 18, 2005
4,043
599
Blue Mountain beach
www.lifeonshore.com
I'm seeing it the same as Fisher on this one.

I am not really sure what there is to see on this one. This all began with us talking about selling homes for under the replacement values. Which we have been doing all year long. Fisher then asked for proof in which he was given several examples. Then we started comparing Cassine to Cypress and The Preserve which is really hard to do because Cassine is an established almost built out neighborhood and the others are a bunch of vacant lots. I agree things will get worse in certain areas especially areas that were built on pure speculation. So are we talking about it getting worse? Or are we talking about replacement cost? Or are we talking about similarities between Cassine, Preserve and Cypress Dunes? BTW, when I sell a property one of the first questions a buyer ask is can you walk to the beach? We call it the toddler test.
 
I am not really sure what there is to see on this one. This all began with us talking about selling homes for under the replacement values. Which we have been doing all year long. Fisher then asked for proof in which he was given several examples. Then we started comparing Cassine to Cypress and The Preserve which is really hard to do because Cassine is an established almost built out neighborhood and the others are a bunch of vacant lots. I agree things will get worse in certain areas especially areas that were built on pure speculation. So are we talking about it getting worse? Or are we talking about replacement cost? Or are we talking about similarities between Cassine, Preserve and Cypress Dunes? BTW, when I sell a property one of the first questions a buyer ask is can you walk to the beach? We call it the toddler test.

This Thread has been stretched in a bunch of different directions. I haven't seen any examples of a neighborhood where I can't buy a lot and reproduce a home for less than a home currently for sale.

I feel certain that today's buyers would rather purchase a complete home even if it were 10% higher than a home pre-construction. I think that 10% margin is the bubble.

It's a worthy note you mentioned about Buyers first questions. Speculative builders would be better off if they knew the first 5 questions Buyers ask before viewing and the first 3 questions short term renters asked before agreeing to rent. These are highly predictable questions.

It's interesting to see you and the other Realtors who are still here. 3 years in now we can start seeing who walks the walk in the business. Thumbs up Bobby.
 

fisher

Beach Fanatic
Sep 19, 2005
822
76
I am not really sure what there is to see on this one. This all began with us talking about selling homes for under the replacement values. Which we have been doing all year long. Fisher then asked for proof in which he was given several examples. Then we started comparing Cassine to Cypress and The Preserve which is really hard to do because Cassine is an established almost built out neighborhood and the others are a bunch of vacant lots. I agree things will get worse in certain areas especially areas that were built on pure speculation. So are we talking about it getting worse? Or are we talking about replacement cost? Or are we talking about similarities between Cassine, Preserve and Cypress Dunes? BTW, when I sell a property one of the first questions a buyer ask is can you walk to the beach? We call it the toddler test.

With all due respect (as you appear to be a nice person and good realtor), you haven't yet shown a house that sold for below replacement cost. In addition, the argument that Cassine somehow holds more value than Cypress Dunes and The Preserve doesn't pass the sniff test.

One question, which subdivision out of those three has seen the lowest sales price (both in terms of real dollars and dollars per square foot) over the last year or so? You got it, Cassine.

That's why we started talking about some of these other things, to use some facts to analyze the "lower than replacement cost" theory. So, far, no facts to back it up the lower than replacement cost theory.
 
With all due respect (as you appear to be a nice person and good realtor), you haven't yet shown a house that sold for below replacement cost. In addition, the argument that Cassine somehow holds more value than Cypress Dunes and The Preserve doesn't pass the sniff test.

One question, which subdivision out of those three has seen the lowest sales price (both in terms of real dollars and dollars per square foot) over the last year or so? You got it, Cassine.

That's why we started talking about some of these other things, to use some facts to analyze the "lower than replacement cost" theory. So, far, no facts to back it up the lower than replacement cost theory.

I'm siding with you on this one too. You are correct.
 

traderx

Beach Fanatic
Mar 25, 2008
2,133
467
While we may have seen a couple of examples that show a home sold for less than replacement cost, the real answer lies in the general market not just onesies and twosies. What got me started on this is the listing in Grove for a relatively modest home, x distance from the beach listed for $800k. What counts are sold prices but I don't have access to sold homes/lots data. I do not have the ambition to tackle Walton County's database.

As a general question, how much would a lot cost that is an "easy" walk to the beach, say less than five minutes? Add to the cost of the lot, say $300k for a 2,000 SF home and you have the central question: can I buy an existing home for less than ($300,000 + cost of the five-minute-walk-to-the-beach lot)?
 
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