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sam_kino
12-04-2013, 11:22 PM
Hi everyone,

I'm new to this forum. My wife and I currently own a exterior renovation company, this year was pretty good to us and we are now ready to start a new division of our company.
We are going to start building homes. We want to start with building spec homes in new communities in Okotoks or Airdrie. We would love to start building in Calgary but getting a lot from the developers is just impossible. We found a lot in Okotoks in the new community of Cimarron. It is a pie shaped lot, around 3800 sqf. The developer is asking for $150k for the lot and I have no other reference to compare it with.

I was wondering if anybody has any experience in this department who can help me determine if it is an average price for me to build a home and sell it for a profit. We are planning to build a house that would be in the range of 450k-500k.

Any reference or suggestions will be very much appreciated.

Thank you all and stay warm!

Cheers

Sam:D

TomcoPDR
12-05-2013, 12:01 AM
Originally posted by sam_kino
My wife and I currently own a exterior renovation company

Sam:D

Do you know Rich, owner of Legacy exteriors?

sam_kino
12-05-2013, 12:30 AM
Originally posted by TomcoPDR


Do you know Rich, owner of Legacy exteriors?

Sorry, don't know him.

locust
12-05-2013, 12:53 AM
The lot prices really very depending which community you look at. I've gotten lots in Airdre in similar size from 120 - 150 depending on the location.

In calgary, the NW i've gotten lots for around 180-250 for similar sized lots.

I recommend finding out what's going to be in the neighborhood. I was able to make a bit of profit on a couple places in the nw calgary as there was a new shopping strip mall being built and a school being built a block a way to from the house. This really increased the value of the lot as the home was much more desirable.

tpurcell4
12-05-2013, 11:24 AM
Originally posted by sam_kino
Hi everyone,

I'm new to this forum. My wife and I currently own a exterior renovation company, this year was pretty good to us and we are now ready to start a new division of our company.
We are going to start building homes. We want to start with building spec homes in new communities in Okotoks or Airdrie. We would love to start building in Calgary but getting a lot from the developers is just impossible. We found a lot in Okotoks in the new community of Cimarron. It is a pie shaped lot, around 3800 sqf. The developer is asking for $150k for the lot and I have no other reference to compare it with.

I was wondering if anybody has any experience in this department who can help me determine if it is an average price for me to build a home and sell it for a profit. We are planning to build a house that would be in the range of 450k-500k.

Any reference or suggestions will be very much appreciated.

Thank you all and stay warm!

Cheers

Sam:D

I live in Cimarron and my 1660 sq.ft home just appraised for $410,000 with developed walkout and no garage, so I think if you are looking at double attached over 2000sq ft you should be in range. I would recommend talking with an appraiser as they tend to deal with future values. Or go into the showhomes that are selling around the lot you picked up and find out what their best selling floor plan is and how much they are selling for to get the most accurate idea at this time.

Sincerely,

Todd

InRich
12-06-2013, 10:49 AM
Originally posted by TomcoPDR


Do you know Rich, owner of Legacy exteriors?

lol Tom.

C_Dave45
12-06-2013, 11:04 AM
Originally posted by sam_kino
Hi everyone,

I'm new to this forum. My wife and I currently own a exterior renovation company, this year was pretty good to us and we are now ready to start a new division of our company.
We are going to start building homes. We want to start with building spec homes in new communities in Okotoks or Airdrie. We would love to start building in Calgary but getting a lot from the developers is just impossible. We found a lot in Okotoks in the new community of Cimarron. It is a pie shaped lot, around 3800 sqf. The developer is asking for $150k for the lot and I have no other reference to compare it with.

I was wondering if anybody has any experience in this department who can help me determine if it is an average price for me to build a home and sell it for a profit. We are planning to build a house that would be in the range of 450k-500k.

Any reference or suggestions will be very much appreciated.

Thank you all and stay warm!

Cheers

Sam:D

3800 sf lot? Pretty small.
That's gonna be a tough job. As a quick example; for $499k you can get a nice 2300 sq ft 3 br, 3 bath house with 9' ceilings, hardwood/tile floors, granite c/tops, SS appliances etc. on a 6,000 sf pie shaped lot. http://beta.realtor.ca/propertyDetails.aspx?PropertyId=13732394

So if your lot is $150k, that means just to break even, you'd have to be able to build that house for $151/sq ft.

Good luck. I'd love to be able to build for myself, but it's a very competitive market. These big builders have perfected their techniques so that their build prices are very low.

colinxx235
12-06-2013, 11:10 AM
Yah it will be pretty tough getting into Cimarron. The 3-4 big home builders there have most of the lots in the developing areas including the estates/manor/country estates etc paid for a long time ago.

sam_kino
12-06-2013, 11:36 AM
Thank you all for your replies :) Any info is good info

C_Dave45
12-06-2013, 11:50 AM
Originally posted by sam_kino
Thank you all for your replies :) Any info is good info

Oh...and when you start building and looking for a tileguy... :thumbsup: