Brand spanking new houses!

New home by Stuart Miles from freedigitalphotos.net

New home by Stuart Miles from freedigitalphotos.net

There is something to be said for brand spanking new!  Speculative or spec home building can be very profitable under the right market conditions and in the right locations.  It is a blast to design and build something beautiful with all the bells and whistles, then sell at full retail (hopefully).  People love new houses. 

Here you will be looking for a good piece of land in a nice neighborhood. Depending on your comfort level, hire either a general contractor for the entire job or sub contract with various companies yourself to complete the construction.   Be sure the house you build is not at the top of the market (biggest house on the block), you should build a moderate home for the neighborhood.  You will need comparable homes or “comps” to make sure the value of your home appraises at the value you intended.  Always do your homework in your market to make sure the current conditions will yield good results.  Look for a high demand, low inventory market to give you the best chance of success.

Are there any neighborhoods that you feel would be a good market for a spec house?  Please comment.

 

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