Where Should I Consider Buying Lots To Scrape And Build?

Within the last week two builders have ask me what area in the Denver are prime to scrape and build new homes. One builder asked me specifically about the Athmar Park neighborhood.

My response follows:
After selling homes throughout the Metro Denver area for the past 30 years, I have learned it is always a safe bet to go where people are spending money. Specifically, regarding one builder's question about considering the Athmar Park area, I suggested to only consider purchasing property in subdivisions that have shown a strong interest by other builders - and buyers. Lots may be available for less money in the Athmar Park area today. BUT, it may take an unreasonable amount of time for a buyer to show interest in being one of the first in the area to purchase a more expensive home in the area. In today's very tight real estate market, that is an intelligent risk.

Athmar Park is experiencing a very high rate of foreclosure actions. (See Jan. 22 Blog below for link to interactive foreclosure map.) A high foreclosure rate does not indicate a strong area for builder speculation in the near future.

It is always safer to follow other money into a subdivision than it is to be the leader. Let me know if you would like more specific statistics on foreclosures by neighborhood. I would be happy to assist you.

I advised both builders to consider other areas of town right now. Very strong buyer demand has been achieved on the north side of Eisenhower Park and the Cory/Merrill subdivision. Other areas to consider would be University Park, Hilltop and Observatory Park if a builder's development budget allows an $800,000 plus range for a finished home. Many other builders have already achieved success in these areas so it is a good bet these builders will too.

I have been helping buyers and sellers with their housing needs for the past 30 years. I look forward to assisting you. Feel free to call or email me.

Bill Kosena, ABR, CRS, SRES -303-796-0957.