Tuesday, January 24, 2006

 

Dyersburg "land"

I mentioned in the last post that I would discuss what land sales are doing in the Dyersburg area. I ran into a developer(yesterday) of some lots just off Upper Finley road that will be ready to sell by summer or fall 2006. He told me that he bought the farm with the idea of developing lots in the $20,000-$25,000 price range. After getting all his bids in for development costs that price just jumped to $26,000-$32,000. I had a similiar discussion with another developer very close to this location. He developed 10 lots and tried to stay in the $18,000-$20,000 range but ended up pricing them around $22,500 because development costs went up so much(in 1 year since last time he developed in this area). Having said all this,there is a severe shortgage of available lots to build homes $125,000 and lower.

These developers have seen the price (for farms to develop) go from $1800 per acre to over $6000 per acre over a three year period. This in turn with the higher costs for the water, sewer and roads has translated into higher costs for lots to build on.

Now what about land out in the county for the average homeowner to buy and build their new "dreamhome" on. First of all, there is very little right now available for purchase to build a home on. I get 4-5 calls a day looking for acreage(2-5 acres) to build on. I currently have two parcels available but do not expect them to be available much longer. I have a friend that just bought 100 acres about 9 months ago to build his new home on. This land 2 years ago would have sold for $1800 an acre but he paid over $3000 an acre just a few months ago.

While typing this article I got another call about a lot to build a $200,000 house on. After reviewing what is actually available on the market, I told them we would look at for sale by owners that I know about.

Having a good knowledgable realtor will definately be worth it for the person looking for a house or land right now in the Dyersburg area. Call me today if you need a good realtor. Mike at 800-896-8016 (toll free) Carousel realty

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