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Re: Best way to get value out of land if building is a knockdown?
Old 07-21-2006, 02:17 PM   #21
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Re: Best way to get value out of land if building is a knockdown?

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Originally Posted by PJ03
I build in Annapolis MD, $200 per square foot would not get you much here, most of my projects start around the $250 mark and go up to around $370 per square foot. Not only has the materials gone up in price, so has labor, country fees, Engineering and Insurance,
just curious (though i'm way leaning towards selling as-is) as i've a similar waterfront teardown to soon consider in south florida on very high-end location, deep water lot. what percentage of that per square foot price is your cut as a builder?

as my brother is an engineer with a gc license and lots of family connections in the industry, what do you suppose might be my price per sq ft for a 5 to 7k sf luxury home (including auger pile foundation, pool & spa)?
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Re: Best way to get value out of land if building is a knockdown?
Old 07-21-2006, 03:40 PM   #22
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Re: Best way to get value out of land if building is a knockdown?

sell as is. why worry about the rest...50k is not enough to take the risk of losing 50k, is it?
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Re: Best way to get value out of land if building is a knockdown?
Old 07-21-2006, 06:49 PM   #23
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Re: Best way to get value out of land if building is a knockdown?

You could cozy up to a neighbor when your in the area and learn a lot.
You might be able to do some rehab and come in out ahead the same 50k. As everyone mentioned its going to be a headache. As always when we do something it always
1. takes longer than expected
2. Costs more than we budgeted.


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Re: Best way to get value out of land if building is a knockdown?
Old 07-21-2006, 10:35 PM   #24
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Re: Best way to get value out of land if building is a knockdown?

Personally I'd sell without doing too much to the property. If I was to do anything, I might hold onto it for a while if prices are climbing in your area, but that's about it. The headaches would turn it into a full time job that I wouldn't want.
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Re: Best way to get value out of land if building is a knockdown?
Old 07-22-2006, 09:09 AM   #25
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Re: Best way to get value out of land if building is a knockdown?

Quote:
Originally Posted by lazygood4nothinbum
just curious (though i'm way leaning towards selling as-is) as i've a similar waterfront teardown to soon consider in south florida on very high-end location, deep water lot. what percentage of that per square foot price is your cut as a builder?

as my brother is an engineer with a gc license and lots of family connections in the industry, what do you suppose might be my price per sq ft for a 5 to 7k sf luxury home (including auger pile foundation, pool & spa)?
For us its somewhere between 8 and 20% depending on the job.
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Re: Best way to get value out of land if building is a knockdown?
Old 07-22-2006, 02:59 PM   #26
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Re: Best way to get value out of land if building is a knockdown?

Quote:
Originally Posted by PJ03
I build in Annapolis MD, $200 per square foot would not get you much here, most of my projects start around the $250 mark and go up to around $370 per square foot. Not only has the materials gone up in price, so has labor, country fees, Engineering and Insurance, The only item on the job site that has not gone up is an Ford F150. in 1994 I paid $13,995.00 for a basic model, last Dec. I paid $13,445.00 for the 2004 model. Go figure !!
My parents live around that area and were quoted around $200 sq ft by Hammond but this was a couple years ago. What do you think will happen to building costs over the next couple years PJ? For existing homes, what do you think will happen to the 1.5-2 waterfront market segment?
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Re: Best way to get value out of land if building is a knockdown?
Old 07-22-2006, 03:34 PM   #27
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Re: Best way to get value out of land if building is a knockdown?

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Originally Posted by rodmail
Couple of thoughts:

1) when your relative moves out, on that day that place becomes very difficult to insure.* An insurance company wants a place occupied.* If it's not, you risk it not being covered -- and worse, if it's not occupied and some high school kids break in and get hurt in it, you're looking at liability.* It's okay to own vacant "property".* It's not okay to own vacant "houses".

2) If the value is in the land, then tear the place down yourself.* Then sell it.* Don't build anew.* Just rip it down.* Then sell.* If the house in current form really does have value and all value is not in the land, then just sell the place and forget it.
1. Disagree, homes are often vacant when marketed. You may need to find a different insurer but remember you won't need contents coverage. In fact if it were a tear-down you could do with just liability coverage.

2. Let someone else pay for a tear-down. Often mortgage companies require that there be a home on the property. Don't close off a purchaser's options.
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Re: Best way to get value out of land if building is a knockdown?
Old 07-23-2006, 10:05 AM   #28
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Re: Best way to get value out of land if building is a knockdown?

Quote:
Originally Posted by macdaddy
My parents live around that area and were quoted around $200 sq ft by Hammond but this was a couple years ago.* What do you think will happen to building costs over the next couple years PJ?* For existing homes, what do you think will happen to the 1.5-2 waterfront market segment?
Hey Macdaddy, was that Hammond the builder or Hammond the Architect ?
In the last few months framing materials have slowed from their upward movement, most other materials are still increasing, this year alone I have had 5 letters from one supplier telling me to adjust my costing upward as their costs are going up.
Almost all trucking to my job-sites have a fuel surcharge added including the onsite potty cleaner.

Existing homes, I see a lot of reductions in existing listings, esp. on the waterfronts, some that have been listed for 1.5- 2mil have reductions of 300-500K. I was looking at a WF priced at 1.9mil, it finally went under contract for 1.5mil.

I have a spec home thats been sitting on the market since last Nov, it was first listed for 1.1mil. its now at 869K.
My hope is that this slowdown will bring down subcontractor pricing, thats been my biggest increase because when they are busy and can't get to your job unless you pay a premium.

Now as far as the contract work goes, I'm swamped, for the past 6 years I've been doing nothing but tear downs and rebuilds for high end customers, we finished one in May and I'm mid way through another one at the moment and will start another in late Aug. We also are planning a 1.6 mill WF for a customer, thats the cost after we tear down their near perfect 5,000 home that they bought last year for 2.4mil.
I don't just tear down the existing home and dump it, I've been talking the owners into spending more to "deconstruct" their homes and to give it to a charity and they can claim a huge deduction from their taxable income.
I bring in a crew from the baltimore inner city area to do the work and I send all of the usable materials to a place in baltimore where it is sold, the money goes to the needy and a soup kitchen, the inner city guys that would otherwise not have a job get well paid and the homeowner gets a hugh deduction and off course I make a little more. most of the old home is re used.
Items that can't be re used would be the roof shingles and sheet-rock, everything else is deconstructed, de nailed, all the block and or brick is cleaned and sent up to Baltimore.




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