I’ve had a few inquiries about buying finished lots in Arizona but didn’t know where to refer them. Finished lots seem like they could really be a good long term investment, if you can buy them right.
During the last few weeks of 2007, as many 8,000 vacant but finished home lots ready for construction sold in the Phoenix area, according to Scottsdale-based land brokerage and consulting firm Nathan & Associates.
“Investors are offering about 30 cents on the dollar for finished lots now,” said Nathan Nathan. “So if it cost a builder $700 a foot to finish the lot (get it ready for a new home), then buyers are offering $350 to $500 a foot.”
Nathan’s not the guy I’m looking for. He plays with the big boys. I’m looking for someone who can handle the lone doctor or small business owner looking for a longish term investment.
During the fourth quarter, housing giants D.R. Horton, Pulte Homes, Lennar, Centex and Toll Brothers, lost a total of $1.47 billion due to falling land values.
RL Brown, publisher of the Phoenix Housing Market Letter, tallied 61,000 finished lots sitting empty across the Valley.
Thank you in advance for your help!