admin | March 12, 2008
Hi - Here is an interesting article that pertains to Clearwater real estate as well as real estate anywhere in the Florida and beyond.
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How to Judge if a Teardown Will Pay Off
When does buying a house and tearing it down make economic sense?
Builders have a guide for estimating whether a teardown will pay off. Generally, the cost of the land must be one-third of the cost of the final sales price of the house.
For instance, if the old home and the land it is on can be acquired for $400,000 and the new house can be sold for $1.2 million, then the builder can spend $600,000 or $200 per square foot on a 3,000 square foot home and still cover miscellaneous expenses and make a profit.
Home owners who are contemplating buying a teardown and commissioning a custom-built home should keep this formula in mind as they consider whether the proposition is realistic, experts say.
Source: ThinkGlink.com, Ilyce Glink (03/01/08)
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Please visit our websites at Clearwater Real Estate or Florida Real Estate
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How to Judge if a Teardown Will Pay Off
When does buying a house and tearing it down make economic sense?
Builders have a guide for estimating whether a teardown will pay off. Generally, the cost of the land must be one-third of the cost of the final sales price of the house.
For instance, if the old home and the land it is on can be acquired for $400,000 and the new house can be sold for $1.2 million, then the builder can spend $600,000 or $200 per square foot on a 3,000 square foot home and still cover miscellaneous expenses and make a profit.
Home owners who are contemplating buying a teardown and commissioning a custom-built home should keep this formula in mind as they consider whether the proposition is realistic, experts say.
Source: ThinkGlink.com, Ilyce Glink (03/01/08)
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Please visit our websites at Clearwater Real Estate or Florida Real Estate
Posted 2 years, 8 months ago on March 12, 2008
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