Update, rent or tear it down-the numbers work! 743 Town Place Hinsdale IL

In a neighborhood where the average asking price (at the time of this writing) is $1,536,000, here is an interesting opportunity to leverage the slowdown in the residential real estate market. Essentially, it’s a 3300 square foot detached home on a 75×125 lot which is priced at land value.

The first question I’m asked is "Is it liveable?" It is way past livebale.

Next up, the valuation. Lots of this size in this neighborhood have sold for more than this. It’s a case where builders ar enot acquiring lots as they have high inventories of their own.

The smart money would buy the house, live in it or rent it until time to demolish it and rebuild. Typically, the relationship between land value and the finshed product must have a ratio of at least 3:1 to be feasible. Without question, a $1,600,000 new house is supportable in this location. There are houses on lots of this size being marketed well over $2,000,000.

For more details, contact me.

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