Jodier, Both Buyer and Seller in Louisville, TN

With the housing market the way it is, would it be wise to build a home on our lot in Louisville, with hopes of selling in 2 yrs for a profit?

Asked by Jodier, Louisville, TN Wed Jul 13, 2011

We own the lot in a upscale gated community, however, plan on relocating to MA within 3-5 yrs. We were looking to build and live in the house until we move, and were hoping to turn profit to buy and build in MA

Help the community by answering this question:

Answers

4
We, Randy Kitts Construction, built and sold a $475k / 4000sq ft house 10 years ago here in Louisville. The same house was just sold to its 2nd owner for exactly $475k. It depends on your lot and your builder. Check out randykittsconstruction.com and give us a call. Lowes Ferry and Lash Brooke are nice areas with some growth.
0 votes Thank Flag Link Thu Jun 27, 2013
Btw, I can currently build that exact house for $400k. So, yes, that would have been a $75k profit for the new home owner who could have been in a new home rather than a 10 year old home.
Flag Thu Jun 27, 2013
Wow! What a dilemma!

Here are some things to consider....

If you do build here, will you become so committed and in love with your house that moving to MA will be out of the question?

Why move to MA anyway unless someone is offering you a once in a lifetime opportunity? I don't think you can beat the Knoxville area for a place to live. We have seasons but we don't have extremes. If there are things in MA that you would like to do, you don't have to own an airplane to take a ride on it.

Think about it...would it be easier to sell a house or a lot? If you were shopping which would appeal to you more?

Everyone that I know has a crystal ball sitting on the shelf that is cracked, broken or waiting on back ordered parts. There is no good way to predict the future, especially that far down the road. Take a look at the last 3 years. Who saw all of what is going on now coming? There have been so many changes that have impacted the real estate market in the last year from political to economic to world events. There is just no way to predict the future 2 or 5 years from now.

Finally, if you are looking to make money to support your decision to move to MA, there are a lot more lucrative investments with less risk out there.

Take a look at the link referenced below. I think it has some things in it that might be thought provoking for you.

Hope this helps.
0 votes Thank Flag Link Wed Jul 13, 2011
Find out what comparable homes are selling for in Louisville, on a square foot basis:

Lets say that houses are selling for $200 per squarefoot; what will it cost you to build now?

Lets say $150 per square foot. Add in the cost of the lot and find out what you would have.

I would bet that you will be above the average now!

And I would bet against much of an appreciation over just two years.

Good luck and may God bless
0 votes Thank Flag Link Wed Jul 13, 2011
No.

Disclaimer: I don't know much about the Louisville market. But unless it's blazing hot--you tell me--don't even consider building (or buying) and selling in 2 years for a profit.
0 votes Thank Flag Link Wed Jul 13, 2011
Don Tepper, Real Estate Pro in Fairfax, VA
MVP'08
Contact
Search Advice
Ask our community a question
Email me when…

Learn more

Copyright © 2014 Trulia, Inc. All rights reserved.   |  
Have a question? Visit our Help Center to find the answer