Dear Jonathan,

High end construction runs $200 per square foot. It is very difficult to get below about $160 per square foot. Most likely a "lot" you will find in Kirkland will have a house on it. So if you find a property for $500,000 to $600,000, there is the cost to tear down the house. Then you have to add the cost of getting a building permit , improving the lot to meet drainage codes, and the soft costs of interest carry.

Right now, until the inventory decreases, and we are currently weeding through it, you can buy standing new construction below cost. The smartest strategy is to buy a finished house now and also take advantage of record low interest rates, which increase your buying power immensely.

I have a quick Market Analysis link on my website, http://www.mcknightrealty.com and also great current market statistics if you want further insight.

Please feel free to call me with any questions my answer may have created for you.

Warmly,
Karen

Jonathan

I agree with the numbers that Sam is giving. Land cost and site development that might be needed,
cost of construction loan, utility hook up fees should be figured into the equation also. Will you be
using one a specific builder's plans or having an architect draw plans for you. Will the builder
be purchasing the property and taking out the construction loan for you with a purchase and sale
agreement or will you be trying to get a custom custruction loan?
Mary

That's a tough question without a lot more specifics. You could build it at $100/sq ft or at $200/sq ft, depending on style, materials, etc. If the land is anywhere close to downtown the lot could be a teardown that costs you $500k, further North you could find something for under $300k.

You should sit down with a builder to discuss your ideas.