Last week, I had previous clients call me asking me for help finding them a vacant lot to build their dream home. They want about an acre on a paved road in north Scottsdale. No HOA. Fairly flat, no mountains.
Okay, sounds reasonable, right? NOT!!!!
Everything currently available within the school district they need is within a subdivision with an HOA or is way over priced. So, I got creative. I searched for some older homes, particularly those which are "distressed" - short sales or REO's within the area they desire. The cost of razing a home and removal MAY offset the cost of putting in the utilities on a non-improved lot. In our area, the average cost of connecting to utilities is about $300 per linear foot. So, connecting water, sewer, electricity at the minimum at a minimum of a 30 foot set back from the street - about $27,000. Want natural gas? Add another $9000. Okay, you want septic instead of sewer? Check with the city for zoning but a new, GOOD septic - at least $30,000.
So, what's the cost to tear down and remove the debris? Based on my calls to a couple of demolition companies, about the same cost. Unknown beneficial/free cost - the usable slab of the original home - may or may not be a plus. Another added/perceived bonus - you already know what is built around you. Is there a two story home backing to your home looking right into your back yard? How's the privacy? Another potential savings - are any of the old things saleable on the secondary market/flea market or reusable/recyclable? Those old copper pipes may be of value - just saying.
However, in this case, it opened up another 18 properties the homebuyers hadn't considered.
We went out to see 5 of the additional 18 properties. One we found needs a lot of work on the main house but has a bonus workshop/barn which their builder will be able to safely store their equipment. The builder (who met us back at the home later in the afternoon) was ESTATIC about the "find" and the buyers wrote a contract that day. They thanked me over and over again for "thinking outside of the box" and the builder has already asked me to be on the lookout for him for two or three more of these type of properties as he has other clients in the same position.
If you're looking for a vacant lot to build your dream home, why not consider a lot in the area you desire with an older home which could be torn down? If you're looking for this opportunity in the Scottsdale Cave Creek or north Phoenix AZ real estate market, please call me - I'd like the opportunity to earn your business.
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