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Is now a good time to build a spec house on Lake Sinclair?

By
Real Estate Broker/Owner with Lane Realty Eatonton, GA Lake Sinclair, Milledgeville, 706-485-9668 GREC# 169695

I'm always snapping photos.  When I took this one because I was fascinated by the "home" this spider built, my husband was amazed.  You see, I don't like spiders.  I scream and they must be removed.  Yes, I know spiders eat insects, but do they have to do it at my door?  I went out that evening to take my puppies "out" one last time before bed and came face to face with this spider and its web.  Poor thing, all that work and I immediately made my husband remove it. 

Speaking of... we had a call this week.  My duty agent fielded the call and the caller was talking about building a Lake Sinclair spec home.  So I thought I'd throw my opinion out there and this is just my OPINION.

I would venture to say that 40% of the Lake Sinclair foreclosed property were once spec homes.  I've seen builder after builder hang on in this market as long as they could before letting their spec homes sit one, two, or three years while making interest payments and then ultimately walking away.  So in my opinion with 37 months of inventory, only 60 Lake Sinclair sales in the first 6 months of the 2010 I clearly state, NO, it is not a good idea to build a spec home on Lake Sinclair right now.

There is too much competition and too many new or newer homes on the market that a priced well below what the cost to build an identical home would be today.  So unless a builder can build a spec without a loan with interest payments it's my opinion that now is now the best time to build. 

So if a builder owns a lake lot what would I suggest?

Market the property with a home without building.  You can always have your agent run photos of a sketch of the home you will build and it's certainly a selling point to let buyers know they could (for an additional price) upgrade appliances, flooring, choose their own paint colors and siding.  Having a qualified buyer under contract when you start building is a much better idea in the current Lake Sinclair market than building a spec house that might only appeal to some buyers sit and sit and sit on the market.

Call me or email me with your questions.  With a lifetime of living in this area and 18 years in Real Estate with an additional 9 in other areas of marketing I might be able to help.  And if I don't know the answer, chances are I know someone who will.

 

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Tammy@Lake-Sinclair.com

(Click on Lane Realty Logo for web site)

Tammy Lankford, Broker/Owner

 

Broker License # 169695  Lane Realty License # H-11420

Real Estate Instructor License # 355089

Call me today for all your Lake Sinclair real estate needs.

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Gwen Fowler SC Lakes & Mountains 864-710-4518
Gwen Fowler Real Estate, Inc - Walhalla, SC
Gwen Fowler Real Estate, Inc.

I am going to steal this idea..I have a builder who wants to build a spec house and I feel the time is not right just yet..this might get him to wait till next spring or have someone to build for.

Jul 24, 2010 05:57 AM
Tammy Lankford,
Lane Realty Eatonton, GA Lake Sinclair, Milledgeville, 706-485-9668 - Eatonton, GA
Broker GA Lake Sinclair/Eatonton/Milledgeville

Gwen- steal away.  I've successfullly marketed sketches on vacant lots for builders in the past and in my local market it makes sense. And from the sounds of your comment it makes sense right now in your area also.

Jul 24, 2010 06:18 AM
Marie Westerman
Blanchard and Calhoun Real Estate/ Wilson Parker Homes - Evans, GA
New Homes Sales Specialist Evans GA REALTOR

Very true Tammy. With that much inventory you would be setting himself up in a very bad situation.

Jul 24, 2010 08:13 AM
Tony & Darcy Cannon
Aubrey and Associates Realty - Layton, UT
The C Team

Tammy, great advice to that builder! 

Jul 24, 2010 02:49 PM
Tammy Lankford,
Lane Realty Eatonton, GA Lake Sinclair, Milledgeville, 706-485-9668 - Eatonton, GA
Broker GA Lake Sinclair/Eatonton/Milledgeville

Marie- it's my opinion it's not the route to go.  Hopefully they are conveniced as well.

Tony & Darcy- I've seen so many builders that I care for and respect hurt so badly in this market and economy I don't want to see it again.

Jul 24, 2010 05:25 PM