Properties that are Overpriced, Not Updated, & Have Unchangeable Flaws
Though a case can be made there is overpaying is occurring consistently in today’s residential marketplace, it doesn’t mean all properties for sale will be able to take advantage. Backing up to a loud street, awkward floor plan layout with little opportunity to improve, large expense estimate to renovate inside and out, small square footage compared to neighboring homes, unappealing neighborhood and/or location, etc. are just some reasons to give a buyer pause and if not priced taking a property’s flaws into consideration can cause a listing to sit on the market.
Lots in communities with limited style specifications + Rising home building costs
Back in the 2000s, let’s face it Mediterranean and Tuscan were the styles of choice. For Mediterranean or Tuscan influenced communities that didn’t finish their build out before the 2008 crash and are now selling lots, building a contemporary residence today may cause developers to pause in some communities. There are communities of course where you will see a myriad of styles of course, but if the community is predominantly one style, or if all the homes are dated around, it may be a riskier investment.
Also, costs to build are out of sight. If you aren’t thinking of at least $400+ a sq ft including the lot purchase in the calculation as an entry figure, then it will be hard to pencil out for a developer if there isn’t amazing price support surrounding the property. The higher the quality and the the more difficult the build out will raise it well height past $400 a foot too. Here is a recent article on the cost of lumber skyrocketing from the National Association of Home Builders: https://nahbnow.com/2020/12/lumber-prices-on-the-rise-again/.
One Bedroom Condominiums
If a pied-à-terre suits you for the long run, or is maybe a stepping stone residence as you start your desert life journey, there are one bedroom options available. Do know that if some are sitting on the market now in this active of a market that it may be an indicator of how it may perform on the market for resale- so choosing the right unit (views, size, location in community, etc.) is important and of course updating before selling is recommended with any property in most cases to get top dollar.
High-Priced Luxury Properties in Exclusive Communities Needing Remodeling
Some of the listings currently available in renowned communities like The Reserve, The Vintage Club, etc. are situated on prime lots showcasing unreal panoramic mountain and golf course vistas and were exceptionally built with many custom features- but there are some showing their age. Buyers in these developments at price points ranging from the upper $2m to $8m’s+ are generally looking for property they can move right into and use soon, especially during the pandemic. If not priced taking the current day style preferences in mind it will most likely take longer to sell if there aren’t exceptional characteristics to separate them from other offerings. The costs of remodeling, just like the costs of building, have soared as well and the bigger the interior and exterior square feet needing renovation the bigger the expense.