Screencast: Land Cost Analysis
The first step of building a new construction spec home is purchasing the dirt (or land, or lot, or parcel) that the home will be built on.
This video walk you through the cost analysis of your land. I will walk you through the following:
- How to quickly estimate the entire cost of your new spec home project so that you’re comfortable making an offer on the land.
- How to determine a reasonable land cost for your build. Remember, a seller’s asking price might not be acceptable for what you want to do with the land!
- How to determine what your exit sales price will likely be based on comps for similar properties.
- Tools that I use to determine the costs and sales price.
Tools that I use in this video:
- My “Back of the Napkin” spreadsheet (download link, Excel spreadsheet). Wonder why I call it “Back of the Napkin”? Here’s your answer.
- Redfin – an online real estate brokerage that represents people buying and selling homes.
Next Up: Now that you have your land under contract, let’s work on some pre-construction items!