Market Conditions in Chicago>Question Details

Dahi, Other/Just Looking in Gilbert, AZ

How much is a teardown in Bucktown today???

Asked by Dahi, Gilbert, AZ Mon Jul 21, 2008

Looking for new construction opps...spec home

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3
Dahi,

The last lot my builders purchased was 25x123 and upzoned to R3.5. We purchased it for $630k 2 years ago and built a home that sold earlier this year for more than $1.5MM. Other lots have since been made available in the $650-$700k range with some sellers overvaluing their land in the mid $700s. This is land between Ashland - Damen, from North - Armitage. You may find land for less north of Armitage but your cost reduction is gained at the expense of having the expressway in your backyard. You gain a bit of mitigation west of Damen but these tend to be short lots on streets like Cortland and Homer. And north of Armitage you dwell at a lesser price point as far as sale and resale goes. There are a number of additional costs such as plans and permits and the fact that construction loans clip you at a higher rate than standard purchase loans. The other factor to consider is that long before you arrived on the scene in Bucktown there have been builders and their representatives delving deep for fair value land purchases - while your objective of finding a lot upon which to build will not be impossible it will be difficult as these earlier arrivals are much more conversant with what's available and typically have the latitude to pull the trigger on a cash basis with quick close capabilities.

Tom McCarey
The Real Estate Lounge Chicago with @ properties chicago
1 vote Thank Flag Link Tue Jul 22, 2008
There is an interesting opportunity for a 3600 square foot lot for sale for $450,000 in Bucktown.

Eric Marcus
ESM Realty
Your Real Friend in Chicago Real Estate
773-244-1110
Web Reference: http://www.esmrealty.com
0 votes Thank Flag Link Sat Jul 26, 2008
Depends, on location and lot size, then supply of competing new homes. I also like to apply a statistical method to compare current pricing to the historical norm. I am always available to run the numbers and do the analysis for clients.
Cordially, Chris
0 votes Thank Flag Link Tue Jul 22, 2008
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