Happy New Year!
January 8, 2009
Although the economic news and real estate meltdown have affected
many areas where values were overpriced and out of balance with
marginal home buyers; some niche markets where demand does not
exceed supply have not significantly been affected and still offer good
long term investments in real estate for the small investor and/or
future home owner that wants to plan ahead and reserve that special
home site for a new home build in a limited market area such as the
Lovejoy ISD where the supply of acreage lots for new homes is
both restricted by city boundaries and zoning within the market area
which includes parts of the smaller communities, the City of Lucas
and the Town of Fairview Texas. Indeed with the development
of both retail and commercial real estate that is now well underway
in Fairview and the lack of new homes being constructed by
builders for models and for sale, 2009 represents a great opportunity
to invest in the purchase of a one to three acre estate home site
while there is some supply still available in areas where market values
have remained steady due to the surrounding properties and demand
by families with children that want the exemplary Lovejoy schools
and close proximity to Collin County cities such as Allen, Plano and
McKinney and are within a reasonable commute time of the job
markets in the Frisco, Richardson, Plano and North Dallas areas.
With over 28 years experience in the Lovejoy ISD real estate market
and a niche in the sales and marketing of residential estate lots and
smaller land tracts for farms and ranches, I am still recommending to
my clients to move forward with the best properties that are in the
Lovejoy schools market areas. Based on my experience and tract
records of surviving, thriving, and staying abreast of two other major
real estate downturns in the past 28 years as well as several minor
recessions and correction markets, I would still recommend acreage
estate lot properties in Lovejoy ISD; of more specifically at least
one acre in Fairview and at least 1.5 acres in Lucas to any one that
has the financial means to keep it for a minimum of 2 years and has
an interest in living in the Lovejoy ISD at some time in the future.
Of course, it pays to be selective and work with a knowledgeable
broker that has the right kind of experience in the niche market
and one that will guide you to make a good buying decision.
This is where my specialized experience really pays off for my
select clientele. If you need my assistance and don't already
have an established relationship with a broker that you trust really
knows not only the area but the residential acreage estate lot niche,
call me to discuss the availability of properties and the pros and
cons of each as well as how they match up with your plans, goals,
and needs for a residential acreage estate lot to build your future
home to live in or resale as an investment.
Also, if you have properties you are considering selling that meet the
above criteria please call me to discuss, as not only do I have many
potential customers and clients that are looking to purchase and own
a special lot or land tract in Lovejoy, but I personally also have interest
in the investment potential of these properties and would like to know
before you actually put them up for sale.
Thanks for visiting my blog, and feel free to respond back or contact
me if you have questions, comments, or need experienced and qualified
real estate marketing and sales assistance. Best regards, Jeanie
Need Some Help Selecting An Estate Lot Or Acreage Home site To Buy In
Fairview, Lucas, Allen, Parker, McKinney, Prosper, Wylie, Lavon, Celina,
Plano ISD, Frisco, Collin County or the North Texas area?
October 30, 2008
By Jeanie Elliott, Jeanie Elliott REALTORS
Specializing in Fairview Real Estate, Lucas Real
Estate, Allen real estate and Estate Lots and Homes
On Acreage in Lovejoy ISD Since 1980.
What are some of the less obvious things to think about besides your
budget before making your selection?
Hello, my name is Jeanie Elliott, and for many years my clients have called
me, "the residential lot lady," because I have bought and sold a great number
of residential estate lots and acreage home sites and planned, listed, promoted,
and SOLD OUT a large number of residential home sites, residential ranch estate
developments and developed lots of all sizes for both small and large developers,
both locally and internationally over the past 25+ years. After a while, these
experiences just produced that reputation from several, satisfied past clients,
that called me for professional assistance with their projects when they
were not getting the results they wanted on their own or simply did not have
the time or needed to put their focus somewhere else.
My MLS records estimate at least 1,300 estate or acreage lots in the last
17 years, which is a great tract record of residential lot sales experience
for an individual, independent real estate broker, when you consider that
the first ten years of my real estate experiences was primarily focused on
single-family homes sales, both preowned and new home construction
in Plano, Allen, Parker, McKinney, Lucas, Wylie, and the North Dallas area,
and I am currently sellling residential homes, new homes, and estate
homes on acreage in those and surrounding areas today. So, although the
residential lot business is my specialty; it is not the only type of real estate
business services I offer to our clients.
However, over the years many of these established residential developers
also shared their experience and knowledge with me, of which I am grateful
to share with you if you are in the market to purchase a home site or
estate lot, need some tips on what to consider, and plan to custom build a
home for yourself or planning to build a custom model home for resale, and
want a some experienced guidance on how to compare properties and
what determines a lot's value, desirability, and influences future resale
in these local real estate markets.
So, the information I am about to share with you, is an accumulation of
knowledge and experiences I learned from some very successful people
and companies that specialized in residential home site land development
and sales and marketing of single-family, new custom homes; and I
know this information is still as valuable today as it was when I got
it first hand, regardless if the market is increasing or decreasing in these
areas of North Texas and Collin County, where I specialize, because the
knowledge was accumulated over 25+ years and that included several
boom markets as well as three major cooling down cycles or correction
markets that lasted several years each.
Again, this was not how I started my real estate career...I actually
started selling houses like most other real estate agents in the area.
I was trained to sell houses and match home buyers and home sellers
in my early years from 1979 to 1985, by large national real estate
companies that dominated the Dallas/Ft. Worth Metroplex at that time
and won a lot of top company awards as well as district wide awards for
my sales and marketing achievements during that time working for some
of the major real estate brokers in the area at that time and teaming
up with them to get well rooted in residential home sales and especially,
in new custom builder home sales which after those first 5 years awarded
me the Top Residential REALTOR in the Dallas/Ft. Worth Metroplex by the
Dallas Homes and Apartment Builders Association, called the "McSam
Realtor of the Year award for 1985." I must say, in all honesty, that I
had some good mentors and teachers that taught me everything they
had learned about traditional residential real estate sales and marketing,
which meant at that time, primarily houses for sale and houses to buy.
So, I was well grounded in the sales and marketing of residential house
sales, and especially new custom homes, prior to moving into the land
and acreage lot or estate lot sales part of the real estate industry.
Also, because 20 to 25 years back, the training method used for new
agents was frequently to assign a new agent to a veteran REALTOR
with many years of experience rather than leave them to the "trial
and error" methods that are commonly used when employing independent
contractors today, which is what most real estate agents are today in
these areas. This strong mentor method of learning, especially over the
first five years of my real estate career, enabled me to put a good
foundation under my real estate profession, and equipped me to later plan,
and establish my own company working independently to further develop
an even deeper level of knowledge in an even broader area of the real
estate business which included residential real estate planning and
development of acreage estate lots.
It was quite by accident, you might say, or as I like to believe it was
really destiny that I "stepped into" selling plain, simple, developed lots, that
really nobody wanted to buy or own at that time because they not only
lacked trees, beautiful views and the right topography to be a hit with the
buyers, but also were considered to be much too far out from the entire
Dallas Metroplex because they were in the small, quaint, Town of Fairview
Texas, which had a passion and slogan for "Keeping It Country."
In any case, I was eventually given the opportunity to take over these
listings of sixty, two to almost four acre, developed estate lots that had been listed
for over 2 years with a local branch of a national realty company, one of
the largest Metroplex residential real estate brokerage companies at that
time, and not a single sale had been achieved, even though they were also
listed with one of their top REALTOR producers in the Metroplex for that
office then. Also, the original land developers, Texas real estate
brokers themselves, had tried to sell them on their own for about three
years even before they decided to give their listings to that large Dallas
area residential broker and listing agent, and had not had any success either;
but since their main business was brokerage of large land tracts, not single
lot sales, they were looking for someone that would make a commitment to
focus on their project and get the momentum going and contacted me
because I had recently sold a comparable lot, a single lot sale, just across the
street from their project on Old Stacy Road, which is where today's Heritage
Ranch Development and Golf Course community as well as other new home
developments are building today. This area was basically, dormant in sales
activity, and buyers that met me to see the properties used to joke that
it was almost as far away as Oklahoma from their perspective.
Although, the developers first listing agent was #1 in home sales, she had
not been successful in the sales of these simple, plain, basic acreage lots.
The sellers, experienced real estate brokers themselves, told me they
believed their product was different from house sales, and they wanted
a listing agent that would focus more on lot sales as market conditions
were tough with no sales after several years, and the market was more
of a buyer's market with many choices and fewer buyers, and when they
saw my recent sales success across the street which was even at a higher
price then what they were asking, they were confident I would be able to
help them get their properties sold and offer something they could not do
on their own, which was focus on the marketing of their project, as they
had commercial clients they represented at the time and desired to
devote most of their time in other areas of the Metroplex.
Their prices were really low, if you can believe $15,000 to $25,000 for two
to three acre developed, estate lots; but they were not able to sell their
own lots even at these low prices on their own, and needed a real estate
broker that would focus on their project so they would be able to get a
different perspective, understand why, how and what to do, and get
someone to be a liaison between them and the buyers to generate the
sales they needed. Not only was the economy in a housing crisis at the
time, but the Town of Fairview was basically an unknown and not in
demand because it was was too small to offer what the buyers wanted,
and the majority of the buyers wanted to live closer into the Metroplex.
Plano, Richardson, Addison and North Dallas were most desirable and
both the cities of Plano and Richardson and their school districts were
making the news as two of the top districts in the North Texas market,
in addition to Highland and University Park, which were the leaders
with the highest ratings by the Texas Education Agency. The Lovejoy
School District which is one of the two school districts that services
parts of Fairview, where this subdivision was located, was almost
basically an unknown at the time. Most of the people that knew about
it were living in Allen Texas, and the Lovejoy school district consisted
of only one elementary school with all the higher grades attending the
Allen Independent School District at that time. However, even then,
the original Lovejoy Elementary School rated the "exemplary" status
by the Texas Education Agency that today has caused much of the
growth and enthusiasm for both the Fairview Texas and Lucas Texas
communities, where the schools of Lovejoy ISD are located.
However, my own opinion is that the sales of undeveloped lots for
custom homes requires a totally different approach from sales of
preowned homes, especially when the development is pretty much
in the beginning stages and there are few or no houses already
built and occupied for the home buyers to be able to visualize what
the subdivision will eventually look like when the area and all of the
homes are built out.
With preowned homes and new home developments that are over
half built out to finishing up, it is easy to see what is for sale or
being purchased and easier for the agent that is promoting the
property for sale. However, with those undeveloped lots, especially
if they lack the natural boundaries of native tree rows and creeks,
or perimeter fencing as often seen in more mature subdivisions,
it is more difficult for both the REALTORS and home buyers to visualize
what the property has to offer in terms of advantages and how it
will look after the finished home is complete. When there are many
vacant lots to select from in a subdivision that have not already been
built on, it is also difficult for many home buyers to decide between
all the options, and in the case of this project, that meant over 60
lots to choose from and buyers could obviously delay making a
decision if they did not have an immediate need, as it did not appear
that the development would be sold out any time soon.
Sometimes if what you need to sell is just something simple, you
might want to reconsider not listing with the top sales agent in the area
unless they specialize mostly in what you need to get sold, because
their focus and interests may be somewhere else, and efforts go
toward homes or properties that are more in their "comfort zone."
Also, if the agent is promoting mostly high-end homes, they may
not have the time to commit to individual lot sales, as luxury home
sales may take up most of their time and focus and most agents
get a lot more excited about selling a million dollar home than just
the sale of an individual home site which may take about the same
amount of time and effort, especially in a slower market where
builders are starting fewer speculative homes and models.
So, consider an experienced broker for the assignment that has a
long tract record for not only the kind of real estate you need to sell
but also under similar market conditions, regardless if you need to sell
a single-family home, a lot, new home, large tract of land, or a project
of developed lots in a subdivision; and has the foundation to back their
ideas, their marketing strategy, and knows the right steps to take to
promote your property best, and on an individual basis. As my years
of sales experience in residential home sites has shown me that the
process to generate estate lot sales is much different from that of
marketing and selling single-family homes, both preowned and new.
So, let's just say, my opportunity to represent this developer and sell
their subdivision, was given to me because they had already tried the
#1 top agent for home sales, who was the most recognized market
leader, and had no success after 2 full years.
As I had just sold another lot in Fairview for another client that
was close to their project and similar in price range and size to
their subdivision that had no activity or sales for several years,
which was, Fairview Farms in Fairview Texas, they wanted a
broker that was already familiar with the area and had been able
to sale it and overcome the obstacles of the economic market
conditions since sales were few and far between in the area.
It is hard to believe, but in 1989, the Town of Fairview was almost
dormant in real sales activity, which is totally opposite today,
almost 20 years later as it is one of the fastest growing areas and
in great demand by home buyers wanting the larger one-acre home
sites in the convenient location with the "country feel" close in to
the Metroplex shopping and businesses, and for the excellent school
systems and beautiful neighborhoods.
But, back in 1989, it just happened that my 3 acre lot sale on quiet
Kentucky Lane in the Blue Grass Farms subdivision of Fairview Texas
was the first lot sale reported to our North Texas multiple listing
service in about 3 years. Some clients of mine from Plano had
had purchased this lot in the Town of Fairview with plans to
build their next custom home. But they moved to California after I
sold their home in Plano as the Texas new home building market was
in a crisis, and their home building experience was more in demand
on the West Coast and their local building company had shut down
its operation in the Dallas/Ft. Worth area, forcing them to relocate.
They had listed their Fairvirew acreage with a different broker, but it
did not sell after many months. However, I had been successful in
getting them a buyer for their exisiting home in Plano, which they had
listed with me, and they found out I also sold country properties.
So, they called and asked if I wanted to take on the selling efforts
for their Fairview acreage lot as well. I welcomed the opportunity,
accepted their listing and sold it in only a short amount of time,
and then the Fairview land closed successfully creating the first
comparable sales value for that area in several years which also
became a qualifying factor for the decision of agent selection for
the Fairview Farms project which I agreed to undertake next for
the land developers.
At that time, Fairview Texas, was a quiet little community
that nobody noticed, and the residents liked it that way. Today,
however, there is a lot of growth, the new "Fairview" has arrived,
with both retail and office developments going in in addition to
single family developments; and Fairview Texas Real Estate is
basically a pretty "hot" commodity even with the market conditions
we have been experiencing in 2008 with slower markets in many areas.
However, the prices today are several times higher for both vacant
residential lots and homes than they were at that time, as homesites
were listed for $15,000 to $25,000 for 2 to 3 acre tracts, and the
large tracts of land where Heritage Ranch and Summer Hill Farms
developments are located today were on the market for about
$3,000 an acre at that time, and it took several years for those
large land sales to be accomplished, even at the low price.
So, believe me, in 1989 to 1992, Fairview Texas was anything
but hot, and these undeveloped lots that were assigned to me
were not popular to say the least and since there were only a
few homes already built in the area, it looked pretty dreary with
so much open range and very minimal trees on only a few of the
lots and the few homes that were built really lacked any
conformity, some were even unattractive as the covenants
were not well enforced in the beginning years and there were
almost no trees or landscaping shrubs to soften the view.
So, how did I accomplish this task, that had been tried by many
others that should have been more qualified than me but were
not successful to even sell one lot in 3 or 4 years?
I will tell you, I dug my heels in and decided to learn everything
there was to know about developing, buying and selling just
plain, flat, basic tracts of dirt with no trees or minimal trees,
no owner financing to attract the buyers, and nothing near the
project that would be a draw for people to want to live in the
area. There were more beautiful properties available in other
parts of Fairview, but that is not where I started...I started
with the properties that were not in demand or in areas where
really beautiful homes already existed, such as the River Oaks
community which was closer to Highway 75, and was a
natural beauty with many native trees.
I did not have any one to tell me or show me what to do
when I first started selling vacant lots and developments,
as the owners and developers were used to marketing and
selling large tracts or developing land rather than selling
individual estate lots, and their focus and techniques were
those that were used for commercial real estate investors,
not working on an individual basis with home buyers and
sellers. I basically had to do all the research, develop
my own selling systems and create a niche market for the
project based on whatever feedback and comments I was
able to get from interviewing residents and talking to
prospective buyers.
It was a challenge, but the lots sold in the order of which ones
the buyers saw as the best from all those remaining down to the
last one. It was during this process, that I was able to determine
what is was about these properties that was more desirable with
home buyers and what they found to be less desirable. Of course,
all the lots sold, even the less desirable ones, because as they sold
and homes were built, the law of supply and demand created the
market for the less desirable lots to become more desirable. Also,
as homes were built, it became easier for later buyers to visualize
what the area would look like finished out and what their neighbors
home looked like, and the area eventually developed its own unique
"personality."
Over the last 20 plus years, I developed a niche for knowing
what is important in purchasing an undeveloped lot, be it a
zero-lot line lot or a mammoth size acreage lot, and how to
put a value on trees, creeks, lots in gated areas, etc. versus
those that did not have the most desirable features.
At my age, I believe it is just good business to share with
prospective home buyers what is needed to know, if you have
a winner, and what are the "Top Five Things You Should Know
Before Purchasing a Homesite or Estate Lot" for that "dream
home" even if you just plan to resale it later and hope for a wise
investment, you still should review these things in making your
choice.
I will now share over 20 years experience with you and give
you "my experienced opinion" of what you should consider in
the selection of a residential lot for purposes of building a
single-family home, as I have sold about 1,300 developed
lots, from acreage to small zero-lot, garden lots, and some
were in packages of up to 50 at a time, although most were
sold just one at a time to both individuals and home builders.
"Top Five Things to Consider In Purchasing a Residential
Homesite or Estate Lot For Building A Single-Family Home"
Everybody knows that price is one of the most important things to
consider, as well as the budget for the home project, but I will move
on to other things that do affect the value and resale of the property
as price and budget are basically an individual choice and affected
by many factors in addition to the top 5 items below.
1.) Number One is the Deed Restrictions. Are they
more or less restricted, and what they will or will not
allow. Such as, do they allow large animals like
horses if this is acreage. Also, can you resale or
build when you want or are there time limits to
your freedom. Are you limited to use only a few
builders that have already been approved, or are
they flexible for you to interview and choose the
home builder. What about the size of the home
in terms of living space? And, what are the costs
for homeowner association dues, if any, and
likelihood of them increasing? Of course, there are
lots of other things, but make sure you get a copy
and understand them BEFORE you go to closing. I
would recommend that you make your purchase
agreement subject to receiving and reviewing the
deed restrictions (also called covenants) during a
specified time period and if you are not satisfied
reserve the right to cancel with no forfeiture of
earnest money. If they do not allow this, then
I would not recommend you wait to purchase until
you fully understand if the covenants will allow you
to build what you have in mind and can afford.
2.) What is the surrounding area being used for, or if
it is vacant, what is it zoned for and most likely to
become. Check this out with the City or Town, call
them yourself, and get as much information as possible.
If there is anything that distracts from the beauty of
the property such as water towers, high power lines,
unsightly commercial property or chicken sheds, etc.
near or next to the property it will affect the property
value indefinitely and resale value will most likely be less.
If there is a animal farm next door with more animals
than the land will bear, there will be a distinct odor,
that will be a turnoff. What types of homes are
already built in the area and will they add or take
away from the property value. For instance, if you
build a new $500,000 home next to a modular home,
you are less likely to see appreciation unless the
modular home is relocated in the future and another
modern custom home is built on that property. For
that reason, if you find a property you like in this
situation, you might want to pass unless you can
afford to also purchase the adjacent properties and
try to get them rezoned.
3.) What is the topography of the property, sloped, hilly,
irregular shape, flood plain, etc. Does the shape of the
property limit the design of the home's floorplan or make
it more difficult to lay it out in the most desirable way?
Are there trees in the wrong place that will have to be
removed, does a creek run though the property that
could make the home's location more limited due
to floodplain, or are there hills or valleys that may require
a lot of dirt work, removing or filling in so the land will
properly slope away from the home's foundation and it
will be secure. Depending on the topography of the
lot, you might be faced with huge amount of dirt and
excavation work that will cost 5 to 10 times what
might be considered normal, if the property is not
feasible for building and requires extra engineering,
such as those gorgeous homes we see that are
on the side of a hill or down in a very low, heavily
wooded forest then be prepared to invest extra
money over and above what is typical and try to
get estimates before you make a purchase.
Sometimes the most expensive lots to built on
are in areas like these where there is a lot of extra
expense over and above the already higher price
tag to live in these areas and if a person does not
have all the facts they can not afford to build on
it after they have made the purchase.
4.) The location of the lot or homesite in relation to
the whole subdivision if within a development or the
area if not in a developed subdivision. Typically
lots or home sites that were developed for building
single family homes are considered a premium property
if they are on the end of a cul-de-sac, next to a
park or green belt, backing to rows of trees that
do not interfere with the placement of the home, or
next to water, ponds, or community lakes. These
are considered choice locations by most buyers and
requested most often in resale homes as well. Also,
other features to consider that are of interest and
requested by many prospective buyers are if the lot's
location is on the corner of a cul-de-sac or if it is a
corner lot that offers a "more spacious feel" because
it is located in a way that provides unobstructed
views of the community, or extra space that some
people like. In most cases, the perimeter lots which
are backing next to the street or are next to a main
street into a community are considered less desirable
and usually sell at a lower price and may be difficult
to resale in areas which attract families with children.
Also, lots that are next to undeveloped property that
the zoning and use may change are more of a risk
than those more interior to the subdivision.
There are also other good locations that might add
add to the lots value for a specific buyer for
resale, like walking distance to elementary school,
near community park, playground, pools, tennis,
or other recreational facilities. Also, being located
in a more secure area such as the gated and/or
guarded neighborhoods that are popular today are
excellent choices if the price range is in limited
supply and you are not having to compromise too
&nb