We've Peaked On Foreclosures ! - NOT !!!

[SHELLY]

I agree and can say that many folks would rather pay a fair price today instead of buying a lot, going through DRB and then waiting "X" months or years for the future enjoyment. So long as they are only saving 10% on self development I think they would rather take the buy today option.

Or they can rent and save a whole helluvalot of money.

.

 

[fisher]

How much more is a property in Rosemary worth today than it was in 2000?

Here is a lot that recently sold for 10% less than it sold for in 2002 and 5% higher than in 1999. http://qpublic4.qpublic.net/fl_walt...33+1490081+469565&layers=parcel_sales+roads#2

Looks like at least one piece of property in Rosemary has fallen back to 1999-2000 prices.;-)

 

[Bobby J]

Please provide some example of homes (newer homes, not 15 or 20 year old dumps) selling for below replacement cost in areas where there are lots available for sale.

The majority of every home I have sold this year could not be built on a neighboring lot and compete with the sale of the homes I have sold. That's why they sold.

 

[traderx]

The majority of every home I have sold this year could not be built on a neighboring lot and compete with the sale of the homes I have sold. That's why they sold.

Bobby, what construction cost per/SF did you assume?

 

[AAbsolute]

Here is a lot that recently sold for 10% less than it sold for in 2002 and 5% higher than in 1999. http://qpublic4.qpublic.net/fl_walt...33+1490081+469565&layers=parcel_sales+roads#2

Looks like at least one piece of property in Rosemary has fallen back to 1999-2000 prices.;-)

From my point of view Rosemary Beach roled out quite a number of properties for sale during the tech. bubble days. Many, many sat for sale for a long time at the original price of that lot you presented. I thought at that time many lots could be purchased, developed and fall just short of cash flowing. I think a lot of others were seeing it that way as well.

They were close to being able to financially perfrom as rental's. They just weren't 100% certain. As the tech. bubble played itself out real estate sales picked up. Then things got some momentum in 2003 and appreciation rates moved a little quicker. More and more buyers came, and with them was more rapid appreciation.

All during this that first fundamental for vacation rentals, cash flow potential, stayed about the same. Prices are going to mark to that rate in this market. The bottom and foreclosure rates are definately close when cash flow potential is close. There is no other factor as important.

From my experience I can tell you that I have never had any trouble selling a home when it's cash flow potential was reasonable.

 

[Bobby J]

Bobby, what construction cost per/SF did you assume?

I tried to pull up a CMA on all my DFS sales this am to look at that but it did not work. I will post later tonight. Off to turkey and will be away for awhile.

 

[Bobby J]

My sq. footage sales have ranged from $127.00 sq foot to $345.00 sq. foot. The diff in the ranges have been based on locations. $127 north of 98 and the $345 Old Seagrove.

 

[Lisa Ruby]

Please provide some example of homes (newer homes, not 15 or 20 year old dumps) selling for below replacement cost in areas where there are lots available for sale.

Here's one, Lakeplace at Grayton, closed early 2008 at 385K, built in 1998, needed some TLC, but good floorplan and "bones. If....you could get a Lakeplace lot for 200,000? and build for 127 psf......you could replace it.
Highly unlikely, the buyer got a great deal.

 

[traderx]

Here's one, Lakeplace at Grayton, closed early 2008 at 385K, built in 1998, needed some TLC, but good floorplan and "bones. If....you could get a Lakeplace lot for 200,000? and build for 127 psf......you could replace it.
Highly unlikely, the buyer got a great deal.

SF? What was the cost of TLC?

Has the market improved or deteriorated since early 2008?

 

[Bobby J]

Here's one, Lakeplace at Grayton, closed early 2008 at 385K, built in 1998, needed some TLC, but good floorplan and "bones. If....you could get a Lakeplace lot for 200,000? and build for 127 psf......you could replace it.
Highly unlikely, the buyer got a great deal.

Thanks Nowgirl. That is one of our sales! We have sold many this year just like this scenario.