What is the lot value of a house on a $ Million $ dollar street?

[Mark M.]

Roughly speaking of course...

Howdy BP'ers from Houston Tx.

Just wanted to get some input. I found a house that looks like crap and its old, but its surrounded by $1-1,500,000 homes. Not all the homes are million dollar baby's but i'd say half of them.

I dont know what this house (or should i say "LOT"?) should be valued at because im finding conflicting info.

In speaking to a contractor he told me on average it should cost between $80-$120 to build an average 2-3,000 Sq Ft house, Maybe a little higher for a larger, higher end home (not sure how accurate that is).

But if that is the case, a 5000 sq ft house at $150 per sq ft comes out to $750,000, I know, i know there are a million other costs included and nothing ever goes completely according to plan, but i would imagine there should be enough room in there for a decent profit if you can build a 1.5 million dollar house.

Now Im not an expert, (far from it) Im just hoping someone could help me out and give me an idea of what a good offer from me should be. I will not be doing any developing myself, Im just trying to get it at a good deal so i can sell it to a developer for a good price, quickly.

Any and all help and advice is WELCOME. And if anyone needs more info about it let me know and ill fill you in as much as i can. If anyone is in the Houston area and would like to get together to discuss it let me know, its always good to meet like minded people.

Until next time, be blessed.