Archive for July, 2009

 Save Big Money When You Build Your Hilton Head Custom Home

Buy a resale home listed for $799,000 like this one in Indigo Run with 3,381 sf.	Or buy this Indigo Run foreclosure lot for $99,000 and build a custom home @ $155/sf and save $175,000.

Everyone knows that  low priced Hilton Head homes and villas are outstanding values now, but even greater savings are possible when you buy a low-priced building lot and build your custom, luxury home.  It’s an option that you may want to consider, especially if you want a new house, designed and built to your own specification with new appliances and the latest building materials.  

You may not be able to buy a home now on Hilton Head but you may be able to afford to buy a lot, locking in some good savings when you build at a later time.  And, lots have traditionally been very good investments based on their high demand and diminishing supply.  

You Can Save $50,000 And More When You Build

• The prices of many Hilton Head building lots have fallen drastically in the last two years.  Among the low-priced lots are foreclosures, short sales and lots that just must be sold.
• The same things that have inhibited more sales of real estate have brought the slow sales of lots.  These include the economy generally and the low demand for building.
• Low demand for building means that Hilton Head home builders are eager for work and their prices are much lower than they used to be.  Quotes of $225/sf are not commonly seen as $180/sf and some builders will build at about $150/sf. 

Big savings are not a sure thing when you build a house but it can be an attractive option that can save you some big money but you have to know about the possibility.  Of course, some people (like me) would prefer to design and build a new house and get exactly what you want.  Today, despite the low prices of many Hilton Head homes, including foreclosures, you can save $50,000 or more when you build rather than buy a resale home.   

Lot Prices and Sales Decline From March 2007 to March 2009

Let’s take a quick look at the downward trend in Hilton Head lot prices.  The chart below compares the numbers from March of 2009 and compares them to March of 2008 and March of 2007.  The numbers in the chart were taken from Hilton Head Multiple Listing Service statistics* and they show a substantial decline in home site prices by half in just the last two years and a decline in the the number of lots that have sold by 75%! 

These numbers are just averages; while the average price of $163,000 is very good compared to previous years when similar lots were selling for $350,000 and more, we want a bargain, a lot that costs less than the average of $163,000 and even as low as $17,500!   We want some pay dirt!

Some Hilton Head gated communities with building lots for sale for less than $150,000

• Belfair with 39 lots for sale for less than $150,000 and with lots from $17,600.
• Berkeley Hall with 19 lots for sale and with lots from $19,500.
• Colleton River with 37 lots for sale for less than $150,000, with lots from $30,000.
• Folly Field with 2 ocean-oriented lots for sale for less than $150,000..
• Hampton Hall with  58 lots (!) for less than $150,000, with lots from $29,900.
• Hampton Lake with 9 lots for less than $150,000, with lots from 98,000.
• Hilton Head Plantation with 2 lots for ale for less than $150,000.
• Indigo Run with 3 lots for sale for less than $150,000 with lots from $99,000.
• Palmetto Hall with 3 lots for sale for less than $150,000.

As I said before, having options is good and you want to work with a real estate agent who can help you to compare communities, resale homes within these gated communities and others and compare building lots,  building costs and builders if the alternative is right for you. 

Savings Can Begin With A Low-Priced Building Lot

Here are some possible savings when building instead of buying a resale home:

• A home in Belfair with 2,861 sf for sale today @ $569,000 lot can be built @ $155/sf = $443,500, plus $17,500 for the lot = $461,000.  Let’s assume that the house can be bought for $550,000; the savings would be $89,000, or 16% less.  
• A home for sale in Indigo Run with 3,111 sf is listed for $639,500 right next to a foreclosure lot that was just listed with Go Gated Realty for $99,900.  Assume that the house can be bought for $625,000, consider building a new house instead with 3,111 sf on the lot next door @ $155/sf = $482,200, plus $95,000 for the lot for a total of $577,200 and a savings of about $62,300, or 10% less.
• A home in Hampton Hall is for sale @ $579,000 with 4,200 sf.  Even at $150/sf, the cost to build would be $630,000 and then you have to buy a lot, so in a case like this, buy – don’t build.  You achieve a substantial savings when you buy resale on this home.

Go Gated Realty is the Hilton Head Gated Communities Specialist®

For anyone who is interested in getting the best deal for a custom home in one of Hilton Head’s outstanding gated communities, please call me at the contact information below or on my cell number, 843-684-2933.  I am a former licensed South Carolina Home Builder who loves to compare homes, lots and communities.  We will find the home that you want or build one, even if it will be built in the future and save you money!

*This disclaimer is required by the Multiple Listing Service of Hilton Head Island:  “The statistical data contained herein has not been verified by the Multiple Listing Service of Hilton Head Island, Inc. and the publication of information hereof is not a representation or warranty of any fact whatsoever.”

Richard Kadesch, Owner and Broker-in-Charge The Gated Community Specialist ® Go Gated Realty ® Hilton Head Island, South Carolina Rich@gogated.com www.GoGated.com 1-800-333-5025 Read Some of My Clients’ Success Stories