Home Buying in Jacksonville>Question Details

hardison.jill, Home Buyer in Jacksonville, FL

If a yucky house is really cheap, but the neighborhood is what you want, wouldn't it be worth buying it and rebuilding on the land?

Asked by hardison.jill, Jacksonville, FL Fri Jul 27, 2012

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The price you offer would need to be the value of the land, minus the demolition costs. However, you could have some competition that would raise the costs. Many investors would see this as a great fixer upper to rent out. They would be determining the value of the property to them differently than you would value it. They would consider acquisition costs, cost of renovations, and potential income. My background and degrees are in construction. If you need more information, contact me at bkgravitt@gmail.com
1 vote Thank Flag Link Sun Jul 29, 2012
Hi Ms. Hardison,

There are a lot of questions that need to be answered before this one. There are questions of financing, demolition costs, rebuilding costs, building permits. Possibly the most important is will this be an investment property that you will rent or resell in the future or is this the neighborhood you want to build your dream home in? Let me know if you'd like some guidance. Good luck!

Jeff Metcalf, REALTOR(R)
Watson Realty Corp.
(904)495-0115
http://www.Realty2Reality.com
1 vote Thank Flag Link Sat Jul 28, 2012
Jill,
You'll have to do your homework on that. Will it be cost effective?
Good Luck!
Genevieve Ramachandran
0 votes Thank Flag Link Sun Jul 29, 2012
Ahhhhh, if only it were that simple!
Sure, go ahead and buy. If you can acquire real estate between 20 to 40 cents on the dollar, you have a lot of latitude regarding what do do next.

Of course, hopefully you are aware there are a thousand things that can go wrong. Then you end up with yucky....then not so cheap, then liability. I know you willl compete the due diligence required.

If this is your first investment purchase, it always hard to pull the trigger. But you must start somewhere.

Best of success to you,
Annette Lawrence, Broker/Associate
Remax Realtec Group, Palm Harbor, FL
727.420.4041
Let chat real estate on: http://www.RealEstateMadeEZ.us
0 votes Thank Flag Link Sat Jul 28, 2012
I agree with Kevin's succinct remark. Too many unknowns to answer here. If you are just buying for the land value, would you pay land price or does the price include the improvement of a home? Are you going to finance the purchase and then destroy the collateral - the home? Lots of questions including market rates, etc. Talk to a local agent with all the facts for specific guidance.
0 votes Thank Flag Link Fri Jul 27, 2012
You need a realtor to assist you.
0 votes Thank Flag Link Fri Jul 27, 2012
Hi Jill,

I would advise working with a Realtor to conduct a market study of the area. What you want to know is the approximate market value of the property once you've rebuilt on the land based on current values of similar (reconstruction) properties in the same area and based on the what you plan to invest in the new home.

If you over improve the property, you will likely enjoy living in the area love, but you may end up with a home that is not worth the cost of buying the land and rebuilding on it.

If you plan to retire in the home, who cares! Buy it, build the home you want, and live happily ever after :-)
0 votes Thank Flag Link Fri Jul 27, 2012
That would depend on how long you plan to stay.call me and we can decided what right for you.
0 votes Thank Flag Link Fri Jul 27, 2012
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