With the higher price points and inflationary increases of a new Florida home on the Intracoastal, some of our customers are purchasing a new home from GHD Construction Services, only to “flip” the home at a nice profit by the time the home is completed in 10-12 months. This is especially profitable to existing homeowners that own an outdated waterfront home and have the opportunity to not only get the highest profit possible for their existing lot, but also make additional profit by selling a package with the new home and lot included on their existing site. This has proven to be very profitable for these clients. There simply are almost no newly constructed homes for sale, raised to FEMA Most buyers today want newly constructed homes with exciting Florida designs, energy efficient and built to FEMA standards.
This housing product is almost nonexistent today along the Pinellas beaches!
While doing my homework, studying proposed home sales prices in MLS, I’ve noticed quite a large disparity in home pricing, from what a lot will sell for in a neighborhood, and what GHD charges for a beautiful new home. GHD has a furnished model of 5400sf under roof (Model3042la) that sells for $629,000. By the time you add the value of the waterfront property at $450,000 – $500,000, add a pool, dock, new seawall, etcetera, the entire package would cost about $1,200,000.
However, I’m seeing listings for new homes of this size at about $1,600,000 asking price. Will they get that? I don’t know, but I do know that there is a nice potential profit for an investor to flip a new home package, possibly at a very nice profit. Also, some homeowners on interior lots opt to construct a much smaller home priced from the mid to high $200’s to increase their overall property value. That is a definite opportunity for homeowners that own older homes on interior lots.
So many of our customers are searching for a way to invest funds from their lifetime savings in what has historically been a very safe and profitable venture, Florida real estate. One of our customers remarked that even if the replacement home that they purchased on their lot doesn’t sell for his anticipated $250,000 increased value, at least they have a beautiful new home to enjoy until Florida’s inflationary spiral continues to increase in future years. As another alternative to purchasing a new home for a potential nice profit, some home owners allow us to advertise their lot in MLS with a picture and price of a newly constructed home on that lot. They list their lot as a “coming soon” package complete with site sign and color rendering. GHD places the sign and markets the package with customers that come through our model daily, looking at various neighborhoods along the Pinellas beaches. We place the MLS
listing which also gets published in Zillow and on other social media, along with every real estate office looking for new housing products for their clients. It actually works quite well and doesn’t involve the cash investment of purchasing the new home yourself. Of course, that homeowner does not have the opportunity for the “upside potential” of selling both the lot and home, but that is an alternative option available today for existing homeowners.
GHD Construction Services, Inc. has constructed 6,500 homes since 1971 and has the new 2018 “Key West” model home at 239 144th Ave. N, Madeira Beach. If you have any questions pertaining to new home construction, feel free to come by the GHD model or call (727) 954-8345, or email to: tweisser@ghdcsi.com
Meanwhile look at our website, www.GHDCoastalHomes.com.
Construction Advice by Tom Smith