Two (Oversized?) New Homes in Place of One
I know firsthand that the neighbors aren’t thrilled with the increased density (I live nearby).
Nor are they happy with the size of the new homes, which dwarf the next-door homes in both height and finished square feet.
But, I certainly understand the business logic of the builder putting up two houses on what had formerly been a double lot with a single home on the 2700 block of Chowen, just southwest of Minneapolis’ Cedar Lake.
Teardown Math
Namely, when you buy a teardown for just over $400k (in 2014), you need to build a new home for around $1.3M to maximize your profit.
However, that price point would have been a stretch for the interior of the block, where homes currently sell for $600k – $800k (the home at the north end has a view of Cedar Lake, and would likely fetch over $1M now — I know because I sold it in 2010).
The solution?
Subdivide the 81.5′ wide lot, and build two homes that list for just over $1M apiece.
P.S.: Sometimes, the neighbors’ upset is exacerbated when the teardown was architecturally significant or otherwise worth saving.
Not here: I personally showed the 1914 home to multiple Buyers before the builder bought it.
My clients all passed because of the odd floor plan, tiny Kitchen, and lack of a Master Bath.
See also, “Double Lot, Defined”; “Is it a Teardown? How to Tell on MLS“; “Tear-Down Economics“; “Tear-Down Prototypes“; “Tear-Down Economics, Circa 2012”; and “You Know It’s a Tear-Down When . . .”
