If you are a long time reader of the Tallahassee Real Estate Blog, then you know there is lots for sale in Tallahassee (meaning a lot of homes for sale in Tallahassee). But if you have actually ever wanted to have a custom built home, you should know that there are also lots for sale in Tallahassee! The average price for a lot in Tallahassee has dropped from over $110,000 to $45,000.
While I am a big advocate for buying an existing home rather than building due to the fact that most homes are now selling for less than it would cost to build them, I will admit that it is a good time to build if you know it is something you are going to do. Most builders in Tallahassee are very hungry, so you would get very competitive bids right now for your new home construction project.
Short Sale Lots Provide Safety Margin
One way to keep you new home's price down is to buy the land below the established market. Here are three examples of short sale lots that are priced significantly below historical values in their respective neighborhoods:
When we look at single family home building permits, we can see that Tallahassee builders have seen their market fall from 140 homes per month average four years ago to fewer than 40 homes per month now. That means builders are hungry for your business and you will be able to get very competitive bids if you know how to negotiate with builders.
The key to getting a good deal in any market is to understand where you stand in any negotiation. If you were building a home in 2005, you had to practically beg a builder to consider your project. The better builders were so busy they had waiting lists of people wanting homes. But that is not the case in 2010.
If you would like to consult with a new home construction expert on what your options are in this incredible buyer's market, just drop us a note and we will schedule a team to help you consider all of the opportunities that you can find.
Joe Manausa, MBA is a 26 year veteran of real estate brokerage in Tallahassee, Florida and has owned and managed his own company since 1992. He is a daily blogger with content that focuses on real estate analytics and providing his clients with a tactical advantage in today's challenging market.