New Construction Feasability

[RJ Moulton]

I have a dilemma.  I am looking to build an 1800 sq ft house,  I have preliminary drawings.  It's not overly complicated but due to the elevation requirements/foundation etc I am probably looking at $250/sqft... so 450k.  The market,  looking at comps,  seems to yield a conservative 500k for such a house.  I am already into it for 75k for lot acquisition/taxes/demolition bringing my estimated cost total to near 525k... you can see where I am running aground.  I did not forsee $250/sqft.   In order to keep the attainable 500k goal i need to keep the sq footage.... what would you guys do?  Pay all the soft costs (about 20k more for total architect/zoning attorney/surveyor and acquire the plans and sell the lot from there? Help!!  

Thanks!