Is It Worth It To Build A New Home?
For the past 7 years, we have seen our Real Estate market in Southwest Florida embark on a rapid and steady upswing. Inventory has decreased and the price gap between a new home vs. resale home is narrowing.
LOW INVENTORY - Cape Coral now averages only 4 months of existing home inventory. When inventory decreases by less than 6 months, supply and demand dictates that the price of homes will increase.
REBUILD COST - During the bottom of our market (2008 - 2010) the price gap for a new home versus existing homes was 50 to 60%, thus making it financially unfeasible to build a new home. The price differential is now close to 15%, making the advantages of a brand new home much more appealing.
LOOSER LENDING GUIDELINES - When inventory was high, very few lenders were issuing construction loans, and those lenders who were lending had very stringent borrowing requirements, i.e. 50% down payment, extremely high FICO score, etc. Now there are numerous lenders willing to provide construction loans with more reasonable requirements and interest rates. Many lenders are even providing construction loans before your current home is sold. Your lot would constitute the down payment equity.
INCREASE IN BUILDING PERMITS - Over the past several months Cape Coral had an average of 120 new construction permits per month. This is a significant surge from the 10-12 monthly permits just a few years ago. We expect the monthly permits to increase steadily until we achieve a well-balanced level, which we believe is 250 - 300 permits per month, based on population projections by the U.S. Census Bureau (see our report). The rest of Southwest Florida has also seen increases in new construction.
Why Should I have Your Team Represent Me When Building A New Home?
Whenever you are considering an expensive real estate transaction you should always consult a knowledgeable/specialized Realtor. We are here to represent you with the same professionalism and expertise as we would in any other waterfront transaction. We will look out for YOUR best interest:
Suggest the most desirable waterfront floor plans and amenities preferred in SWFL
Recommend upgrades that yield the most aesthetic appeal and highest resale value
Keep an eye on the building process when/if you are out of area, and send photos as well as comments pertaining to the progress of your new home.
Recommend builders who won't disappoint you before, during or after the construction process
We have devoted extensive time researching the most reputable/reliable builders in our area. As Tom describes it, we have found the best “Cluck for your buck” builders. Every builder has their own unique standard features in a model home and those upgrades for which there is an extra cost. Keeping up to date with so many builders (more each month) could be considered a full-time job in itself. We have a short list of top-notch builders for varying price ranges. You don't want to sign a contract with a builder that is not financially stable or lacking in reputation, communication, or reliability. For further detail regarding why we should assist you in selecting a builder please read our blog on this topic.
HOW DO I BEGIN THE PROCESS OF BUILDING A NEW HOME? Locate a nice lot in a good neighborhood. Whenever we are searching for a well located, well-priced lot for clients we always utilize the Neighborhood Aerial Map (See Below). This map, which is used by only a small percentage of Realtors, enables buyers to quickly and easily determine the best located, best-priced lots in a specific area. It also enables you to see the rear exposure of the lot, size of the canal, etc.
The lots highlighted in purple below are the lots we consider the best values at this time in these areas.
This is a sample map and may not reflect today’s prices
(We will create a specific aerial map for your desired area and price range)
Thank you for visiting today. If this is your first visit, take your time and look around. I have plenty of information and resources available to you. If you are a return visitor, thank you. I would love to hear from you and tell you how I can serve all your real estate needs.
Copyright 2018 Multiple Listing Service of Greater Fort Myers and the Beach, Inc.; All rights reserved. The data relating to real estate for sale on this web site is the copyrighted and proprietary database of the Multiple Listing Service of Greater Fort Myers and the Beach, Inc. The properties displayed may not be all of the properties in the MLS\' database, or all of the properties listed with Brokers participating in the cooperative data exchange program. Properties listed by Brokers other than Luxury Waterfront Team are marked with BR logo and include the name of the listing Brokers. Information provided is thought to be reliable but is not guaranteed to be accurate; buyers are advised to verify facts before making the decision to purchase a property. No warranties, expressed or implied, are provided for the data herein, or for their use or interpretation by the user. Information provided is for consumer\'s personal, non-commercial use and may not be used for any purpose other than to identify prospective properties consumers may be interested in purchasing. This site will be monitored for \'scraping\' and any use of search facilities of data on the site other than by a consumer looking to purchase real estate, is prohibited. Listing broker has attempted to offer accurate data, but buyers are advised to confirm all items. Information last updated on 2018-09-19.