A Vanishing Commodity
If you looked closely at the list of swimming pool homes listed above, you probably noticed that exactly 1/2 of them are already under a contingent contract. When you add the ones not shown (because they are under binding contracts), then you’ll discover that 70% of the homes for sale with swimming pools priced under $300,000 are already under contract. We were hired to sell three of them, and all three are under contract with buyers.
This is a clear sign that there is a high level of demand for these homes. What you might not have considered though is that this commodity is short-lived opportunity. It won’t be a long time before you will not be able to buy a single-family detached home with a pool in Tallahassee for less than $300K. Why?
Replacement costs are too high and they are pulling values up, that’s why! The average single-family detached lot is up to $70,000, and the average new pool costs about $60,000. If you have a $300,000 budget, that only leaves you with $170K for the home.
With average new construction costs of $140 per square foot and higher, that means if you are very tight on your spending you could build a 1,214 square foot home, while the average home size in the list above is over 2,000 square feet. This delta is only going to grow as prices move higher, both for homes as well as replacement costs.
If you would like to own a nice-sized home with a pool and spend less than $300,000, the time is now!