Is it really that bad?
Even when the market is going well; I try to stay away from the “someone will eventually buy it” attitude. Builders sometimes use the lowest priced building materials they can find and make the “cheapest” house they can build…and then sometimes sell it at exorbitant prices. Clients are looking for more than an affordable home. They are looking for a place their family can call home. Hardwood floors, ceramic tile, decent windows, and hard-plank siding are just a few of the things potential buyers look for when finding a home that interests them. Landscaping is also important because a first impression is worth more than all the sales talk you can give. There are several things you can do to improve your home without losing all of your earnings. What about some gable or wood accents on the gables? What about a contemporary paint scheme? We all know that many buyers are drawn to the kitchen and master bathroom. Spend a few thousand extra dollars in these areas and watch your house sell much faster than the other “standard” houses in the neighborhood. Drive around your city and see what others are doing. The other day we went to a development called Mountain Air in Burnsville, North Carolina, and we saw a lot of beautiful houses. We end up with about 6 new home ideas that can’t break the bank.
Other times, builders get caught up in the “Million Dollar House Syndrome.” This is where they build a house that they will sell for $1,000,000 or more… and when the market goes down, they keep it. If you are in this category, it would be wise to keep some smaller projects as insurance. Affordable housing ($200k or less) is hard to find. For example: Builders may have multiple $1 million+ homes under construction and also build a few affordable housing solutions at the same time. I met a builder/developer in the Weaverville, NC area who has a beautiful $800k home for over a year! I took a look at the house and it’s already getting old. The stucco does not have to be installed correctly, so it is molding in the bottoms. The interior is immaculate, but there is no life. It was a great investment with no profit so far. The Builder had to halt construction on several other projects due to this problem. Be careful!
With the many ups and downs of Real Estate, it would be wise to aim and overplan before beginning a spec construction project that you want to sell. In fact, we just finished a beautiful Cape Cod in a nice mountain cove in Weaverville, North Carolina, about 15 minutes from Asheville. It was sold immediately. Yuriy, a client from earlier in the year, built a small ranch with an attached one-car garage. Simple really, but added a few options, and is under a sales contract as I write this. Listen a little closer to the market and find out what you are asking for. Then respond appropriately to the request! Good luck!