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Considering purchase of a lot in a mountain development near Hendersonville. A couple of homes are built there but mostly sales of lots for future build. They are currently putting in the community lodge. Roads and utilities are in. Maybe approx 1/3 of lots are currently sold.
This is a new experience since I've never purchased land/lot except in sub-division type development where the developer was also going to be the builder.
So, my question is do lot sales in the mountain developments like this typically go for the stated asking price or can you make an offer below the asking price similar to what is typically done when buying a house? If it is normal for people to make a lower offer, how much is a typical amount below asking price to offer (2%, 5%, 10%?) that won't be looked at as a joke?
In general, how are the prices for lots in the new developments doing? Are they still appreciating or is it starting to show signs of being weaker?
Hi RR,
It really depends on how bad you want that lot. Very seldom do lots sell for full asking price. There really isn't a rule on what what makes a lowball offer. You just know one when you see it. I am seeing downward pressure on land and home prices. There is a glut of both in this area right now. I think some of this stuff has been overpriced, and the market is taking care of that. Do your research.
Mtnman
Thanks for the reply and info. I've been doing some research and have found what various parcels / lots have sold for so I can get some idea of proprety values. But, there are a lot of variables to take into account when I try to compare that to a specific lot we might be looking at. Haven't found any data on what properties listed for vs what they sold for.
I know in most areas the land and housing markets have really slowed down but didn't know if an area like Asheville/Hendersonville was being affected. Any idea of the rate of annual appreciation that lots in developments with mountain views have been experiencing until lately or what local area people expect it to be going forward over the next year?
Annual appreciation really depends on each property, and the people wanting to buy. It's really all over the place. I have seen properties sell, then sell again a year later for double the first sale price. I have also seen some that didn't make a lot of profit. For the most part, land for investment should be a long term thing. If you are buying to build on later, and it is a nice view lot, it depends if that property is worth it to you. It's only worth what someone is willing to pay, no matter what the asking price.
Mtnman
Yeah, I understand that any specific lot / development could be quite a bit different from the next. I'm really asking if there is a more general trend. We're looking to buy a lot and build in 5-6 years when I retire. Just trying to get a sense if now is the time to do it or if there is likely some additional cooling of the market that will occur and how much flexibility might be in the asking price.
We're waiting to see what the retirement planning financial analysis comes up with so we can figure out how much we want to spend on the whole package. Then we'll have to figure out how much we're willing to go on the lot vs what we want to have in the house.
Ok. The trend in this area has been upward for years. As I said before I am seeing downward pressure on asking prices. Longer time on market, etc. Looks like a buyers market to me. Where will that end? I wish I knew. We have been in this slow sales period for over a year or so now. The other market slow-downs has finally spilled over. The slow Fl market has bogged sales down here for sure. The good news is people from all over the country seem to be looking at NC to call home. I think WNC is still a good investment, and a place I intend to call home.
I hope that helps a little. It's all speculation, or educated guess at best.
Mtnman
I really appreciate the info. My background is engineering and project management so it's in my nature to try and get as much data as possible and do a ton of analysis. Drives my wife crazy!
We're one of those from around the country that think NC would be a great place to retire. Hopefully we'll be able to sort out all the financial questions and be able to make an offer on a lot within the next 6 months. May come back down there early next spring to do one more round of looking if we need to.
I really enjoy hiking and photography and would love to be living down there now and exploring the trails and waterfalls in the area. But, still need to put in a few more years at the job in order to get the kids finished with college and maximize the pension benefit. Save a spot for one more there!
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