Home Buying in Elmhurst>Question Details

Cas Cate, Home Buyer in Chicago, IL

Where can I find more information on the teardown/rebuild market in Elmhurst?Does it have to be a $500k property when rebuilt to make sense?

Asked by Cas Cate, Chicago, IL Sun Feb 24, 2013

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This question was asked from this property: http://www.trulia.com/foreclosure/3106430563-N210-N-Howard-A…

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Hi,

The amount that you want to make as a profit is definitely a factor in answering that question. A goal that I've heard is to triple the purchase price. In this case that would mean you'd want to build a home that could be sold in the mid $500's.

I'd be glad to provide you details on homes selling in that area so you can understand the market better. I've been working in Elmhurst for several years and are quite familar with the nuaces of the market there.

Sari
Managing Broker
http://www.lucidrealty.com
1 vote Thank Flag Link Sun Feb 24, 2013
Cas,

$500,000 is on the low end of the value if you wanted to tear down a home or build on land in Elmhurst.

For example, if you found a plot of land or a "tear down" for $150,000 & it cost you $200,000 to $250,000 for demo & construction, you may already have $400,000+ into the property.

If you are looking to re-sell the property, you have to factor in real estate commissions & holding costs before realizing any profit.

As you see, $500,000 would probably be close to a break-even point before realizing any profit.

I know you asked this question back in February, so I hope you are well on your way with your plans.

Good luck!

Kevin Hudoba
Real Estate Agent
Exit Realty Redefined
630-677-5559
Kevin.Hudoba1@gmail.com
0 votes Thank Flag Link Fri Jun 14, 2013
Hi Cas, over 40 new construction homes have sold in Elmhurst over the last 12 mos. Generally, the range in selling price was from $600K (a handful for less) to $1Million. The average selling price being approx $750K and an avg market time to sell of 172 days. The teardowns/lots are selling generally from $200K (a handful for less) to about $650K for prime and or double lots. I can provide a full detailed report on all these market stats if you wish. Are you contemplating building your first spec in Elmhurst or a home for yourself?
0 votes Thank Flag Link Sun Feb 24, 2013
Hi,
I work full time in the Elmhurst area and I can tell you in order to build a home here your going to pay at least $200,000 for non prime location on up to 500,000-900,000 for prime depending mostly on width right now. Here it is hard to build a quality home with at least 3200 sq ft for $500,000. But the good news is that lots are moving fast sometimes mutliple offers and builders are building again and selling before it is finished. There is not a lot of quality work being done so the stuff that is sitting currently is being passed over by buyers right now. let me know if I can help. We have 49.0% of the Elmhurst market in our office and things come on and sell before they hit the MLS here.
0 votes Thank Flag Link Sun Feb 24, 2013
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