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Land speculators are in the deep doldrums.

I have a client that wants to sell 15 acres of land in Ocala. They`re prime acres located in a great area of town. It`s close to Highway 200, the lots are zoned for residential and he thought he purchased this acreage at the right price in 2005. The problem is he`s looking to sell this property,but the simple truth is the lots are not worth as much as he paid for them in 2007!

He`s not alone.Many of the major builders in this area, are faced with the same dilemma.

During 2000-2004 land in Florida was extremely cheap. I remember investors would purchase lots in Leigh Acres, Ft. Myers, Ocala, and Gainesville for less than $9K an acre. They drove the lots higher and in many cases tripled their investment.

With new construction slowing down and prices decreasing, those who are looking to sell their lots that were purchased for $25,000 are now looking at $11-15K.

There are not many buyers unless you`re prepared to take a loss.Many developers are waiting to see how this plays out, some are waiting on the sidelines anticipating another reduction, before it gets better.

In the case of our potential client. We discussed the possibilities of taking a loss, which he`s prepared to do. It`s hard to remain on the sidelines
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July 22 2007 - US

Replies (6)

We've been hearing of this same problem in some areas of CT. We have a few builders now that have excess inventor (undeveloped land) and they absolutely cannot move it, even at a loss.

Yet in some areas, we are getting good buyer response from other development listings.
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July 22 2007
I guess it`s a matter of price and location.
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July 23 2007
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Real Estate Agent
Contributions: 1
Is there anyway you can get a zone change to a higher density?
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July 24 2007
Aplaisted,
Spoke to P&Z. There is no way to change the zonning on this parcel.
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July 25 2007
Ya we could never understand the small lots (for the most part) in Florida, you really need to buy two or three together in order to get any sort of privacy.
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August 10 2007
Agree, back to back lots are important when packaging a sale.
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August 21 2007
 

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