Conservatory Lot Sales Ready to Bust Loose
A bank-owned lot is reduced to $169,900 and another lot has a $99,000 short sale contract pending lender approval.
February 5, 2008 – Palm Coast, FL – A few weeks ago, the news that a lot in Ginn’s Conservatory at Hammock Beach was listed for $99,000 shook up the market. Since, a lake/golf course lot has been listed at $199,900. Another lot is offered at $205,000. Now, a bank owned lot which was unsold at $209,900 has been reduced to $169,900. (Listing information)
Within one hour of the story about the $99,000 lot, my phone began to ring. I’ve known that there were people on the sidelines just waiting for the right opportunity. At $99,000, there is plenty of interest, while at $209,900 there was little. (Neither of these properties has golf or lake frontage.) So where are we now?
The $99,000 lot is a short sale. This means that the contract price is less than the outstanding balance of the loan. The offer is contingent upon the lender accepting the price. In this case, the lender did not pre-approve the price or even a short sale for that matter. The lender is under no obligation to accept any offer. So we will have to wait for the outcome. Therefore, the $99,000 price has not established a floor to the market. The floor will only be established by a real transaction, but it does establish that buyers are very interested at that level.
There are also some new golf/lake frontage lot listings in the works. A few owners have received pre-approval for short sales at prices below $200,000. Most lots have a $60,000 value full golf membership option available for only $20,000. Membership includes the Tom Watson designed Conservatroy Course as well as the Hammock Beach Club and Jack Nicklaus designed Ocean Course. I expect the bank owned lot, acquired by the original owner for $404,900, to see some action soon. It will take only one transaction to bring buyers in from the sidelines. And with the $15,000,000 clubhouse opening in March, the bottom may be brief. Don’t miss it.
If you would like to be notified of opportunities for Conservatory lots as they occur, please contact me at (386) 931-7124 or click Contact Us. Please provide your name, phone number, and email address.
consevatory
nice area but big taxes. 5k for a lot. put a house on it and it will be about 8k. palm coast has turned into a tax and spend town.
Expensive to hold, not a good investment
Lets say you get a \”steal\” at 99,000. then you pay $700 per month fees for the golf memberhsip, $400 a month in taxes, plus the HOA fees which are probably around $400 and will go up when the clubhouse opens. On top of that, you must build a house within three years. Thus, for $1,500 per month carrying costs, the investor that does not intend to build a house is taking a big gamble with the hopes of flipping. Also, there are many prime lake/golf lots that are in the process of foreclosing, that creates a healthy supply of competing low-cost invetory in the future. Big risk proposition for the speculator if you ask me. Instead, but a house or condo on the cheap, and get a renter for two years.