Custom Construction or Buy Existing and Remodel?

Posted May 26, 2016 at 5:46 am by

Merri Ann Simonson - Contributed photo

Merri Ann Simonson - Contributed photo

Mer­ri Ann Simon­son shares this…

In the cur­rent mar­ket it is much more afford­able to buy an exist­ing home than it is to pur­chase new or cus­tom con­struc­tion. Why is that?

On San Juan, home prices peaked in 2007 and bot­tomed out in 2012. Dur­ing that peri­od, approx­i­mate­ly 30% in medi­an home price was lost.

More so with the medi­an land prices, they peaked in 2006 and the medi­an price decreased approx­i­mate­ly 62% dur­ing the recession.

The costs of mate­ri­als and labor did not change dur­ing the reces­sion. As agents we were quot­ing esti­mates of $235 -$250 per foot for mid-lev­el new home con­struc­tion costs before the reces­sion, and are quot­ing that now as well. This price per foot will afford some hard­wood floors, cus­tom cab­i­netry, gran­ite, and a high-end appli­ance pack­age, if you spend wisely.

Some homes on the island have been built for as high as $1,000 per square foot. Those sell­ers that decid­ed to sell after build­ing their dream home at those lev­els may lose mon­ey as the mar­ket rarely sup­ports those extra fine improve­ments and unfor­tu­nate­ly, all the receipts in the world do not make a home more valu­able than the mar­ket is will­ing to pay. Of course, inven­to­ry of sim­i­lar homes will have an impact on sale as well…

Con­tin­ue read­ing on Mer­ri Ann’s site… (PDF)

You can support the San Juan Update by doing business with our loyal advertisers, and by making a one-time contribution or a recurring donation.

Categories: Business

No comments yet. Be the first!

Leave a Reply

Your email address will not be published.

By submitting a comment you grant the San Juan Update a perpetual license to reproduce your words and name/web site in attribution. Inappropriate, irrelevant and contentious comments may not be published at an admin's discretion. Your email is used for verification purposes only, it will never be shared.

Receive new post updates: Entries (RSS)
Receive followup comments updates: RSS 2.0