It’s Lance Mohr - Tampa real estate agent.
Today we’re on day 3 of the video series on buying a new home.
Today, I want to talk about a couple of things.
I want to talk about the location and the lot size.
How important is the location, and what do you mean by lot size?
And how important is this, and how does it really work?
Let’s talk about location first.
I know everybody has always said, real estate is location, location, location.
And there’s a lot of truth to that.
The reason is, when you’re buying real estate in Tampa, you have to be really careful in
where you’re buying, depending if value’s important to you because there’s a lot of
subdivisions out there that are very slow subdivisions when they’re being built.
They’re going to be very slow subdivisions on resale.
So, they’re not going to go up very much.
But if you buy in the right location, if you buy in the right subdivision with the right
builder with the right floor plan, you could see value skyrocket, and we’ll talk a little
bit more down the line of how this works and how to get a really great deal when buying
a new home.
But it’s really important when buying a new home don’t talk to the sales rep.
At the end of the day, the sales rep is there for the builder, and they’re going to tell
you what you want to hear.
You need to talk to a real estate agent who really, really knows the area, who understands
new construction, and really get a grasp and push them.
Why do you say this location’s good?
What makes this location better than this location?
Why should I buy here as opposed to here?
What are the advantages and disadvantages?
This is really important and I can’t tell you how important it is to pick the right
location.
I’ve had client that’ve gone out and they wanted to buy a home in an area and I’ve
just told them probably not the best area and here’s why.
And then they haven’t bought the home and they’re like, wow, I’m so grateful, years
later, when I got to sell the home that we did not buy in that other location.
So, definitely check that out.
Very important is the location to buy in.
OK, lot size.
What do I mean by lot size?
The other day, in the video I talked about the 50 foot lot, the 60-65, and how does that
all tie down?
A lot of times people will come to me and say, I want a 2,000 sq. ft. home with builder,
and I want it to be on an 80 ft. lot because we really like big lots and we like subdivisions
that have big lots.
Well, let me tell you how it works in the building industry.
First, know this.
The lot’s actually the value.
With the builder, if they don’t have dirt to build on, they’re broke, they’re belly
up.
So, the lot is the value and the home is the commodity.
So, if you go out, let’s take that 50 foot lot, for example, on a 50 foot lot most builders
will use a factor of 25%.
So, in other words, let’s use a 4 times multiple factor of 25%.
So let’s say that 50 foot lot is worth $50,000.
The average price of home they’re going to build on that 50 foot lot is going to be
about $200,000, which is 25% of that.
So, it’ll range; it might be a bit higher, it might be a bit lower.
If you move over to the 60 foot wide lot, let’s say that’s worth $60,000.
Okay, use the 4 time multiple.
$240,000.
So you can see, it didn’t just go from 200 to 210; it went from 2 to 240.
You could do the same thing for a 70, 80 or 90, etc.
So, that’s why if you go out to a lot of these areas and you might see homes where
there’s some of these homes on acres of lots, the homes are huge and they’re very,
very upgraded and completely macked out with amenities.
So you really have to keep that in mind and that’s what really ties the story down that
I was telling you yesterday that you have the Syntax, the really cookie cutter, and
then you have the Morrison Homes, and then you have the Cardel Homes.
Generally, when you start seeing Tampa real estate new home builders and they build starting
on the 50 foot series, they’re probably going to give you more of the basic package.
And then if the home is on a 70 foot lot, it’s probably going to be a completely different
package and sometimes completely different floor plans.
If you have any questions about new homes or Tampa real estate, click the link below
and send me an email or give me a call.
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I look forward to hearing from you and I look forward to this new homes series with you.