Lot Buying Re-Emerges in Cape Coral. Reasons for Rising Lot Prices & Neighborhood Aerial maps
2017 again found waterfront lots rising in value: After six years of steadily declining prices, waterfront lots started increasing in value in early 2012 . . . and at a very healthy pace. Depending on the location, gulf-access lot prices have increased between 12 - 18% in the past year. We see the trend continuing, and have invested in several waterfront lots ourselves.
Reasons For Rising Lot Prices
* Substantial decrease in home inventory, leading to an increase in new home construction
* Savvy investors have shifted their focus from remodeling to new construction for higher profits, thus they are buying numerous parcels of land for future need
* Lenders have greatly loosened requirements for new home financing, making it easier for builders to build spec homes (which are selling quickly). Lenders now require less upfront capital and a much more reasonable FICO score for homeowners to finance a home of their dreams. Many lenders are even providing construction loans before your current home is sold. Lenders are once again offering lot loans, although with high down payment and high-interest rates.
* The gap between existing home prices and new construction has dropped from 50 – 60% to about 15%. When the gap is at this level many people are willing to pay the differential to get a new home that is exactly the home they want, and in the precise location they want
* With more retiring Baby Boomers wanting to move to the area, or at least own a second home here in Paradise, the decreased inventory and increased prices make building a new home quite attractive...and to build homes you need first acquire land.
Best Method to Buy Low for Maximum Profit
The “Neighborhood Aerial Map Program” shown below is the absolute gold standard for finding the best valued lots for investment or for home building.
This is a fabulous software system that only 4% of local realtors are willing to invest in. However, we have not sold a home or lot for a client or ourselves without first checking the Neighborhood Aerial Map. Any other comparison method is relatively inferior.
The Neighborhood Aerial Map provides a simplified means of comparing all the lots in a particular unit, and determining which is the best value based on size and location of the lot, width of the canal, and rear exposure (ask us about this important criteria).
Combined with Google Earth map, this Neighborhood Map system provides a level of confidence that has enabled some out-of-area buyers to purchase lots from us sight unseen, something most anyone would be uncomfortable doing with a home.
Neighborhood Aerial Maps
Below is a random sampling of two neighborhood aerial maps. The units are shown, along with what would be our top selection for value. The lots in purple are the best value, but by the time you read this those lots are likely sold, and we would conduct an up to the minute aerial map in whatever unit(s) in the Cape you are interested in.