Profile picture for richardmccarthy pt

Which neighborhood?

I own a plot of land I recently purchased for a home to build and when the home estimate was done it was much more than expected. The plot of land is in a first phase of three phase development, average price of house so far about 380k, my home will be 600k.  For about about 25k total loss (including clearing of new land, attorney) I can sell this land and buy lot to more upscale neighborhood where average price is 650k and is just finishing 3rd phase. Same town, about 5 minute between plots.  Any Suggestions???  I am stumped!
  • October 04 2013 - Town of Orchard Park
  • 0
    0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

Be a Good Neighbor. Be respectful and on-topic. No spam or self-promotion! See our Good Neighbor Policy.

Answers (5)

Profile picture for B Mike West
Building a $650K home in a $380K neighborhood is not a prudent plan. Local values will pull your home's value down.  

Building a home is an expensive proposition.  You have to have excellent credit to qualify for financing. If you have the bucks you might consider selling the parcel and moving to a location where your completed home's value matches others in the area. 
  • October 04 2013
  • 1Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

Profile picture for sunnyview
If the average price is 380K and you want a 600K+ house you need to sell the plot and look to buy in a neighborhood with more expensive houses.

Overbuilding in an infill neighborhood or new development is a common mistake and the owners who do it never see their money again. Talk to a local agent in your area and find neighborhoods that will appeal to high end buyers long term before you build.
  • October 04 2013
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

Profile picture for CallTheSisters
If you build a 600K house in a 380K neighborhood you will never be able to sell it and get your money.

  • October 04 2013
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

Great idea to ask an advice: red flags!!. Over improved house in a low price neighborhood is not a good idea.Try to flip the land and buy the opposite: the smallest house in the most expensive neighborhood. ABC investments.
  • October 04 2013
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

Cut your losses now and sell the lot for as much as you can, then you can buy and build in a community where they homes are as big, as the home you want to build. Are you getting financing for this project? I don't believe the lender will even lend on such project; your property will be consider the white elephant,  a property that has no comps, a unique HARD to appraise home.
  • October 04 2013
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.