05 February 2010

Property Values: What you pay for New Modern Construction

“A man, who every morning gets five slaps in the face from his grumpy wife, one day gets smacked only twice. For him, it’s a relatively good day.” – my dad, explaining the word “relative” to us when we were kids.

I often get inquiries for brand-new modernist homes, with a budget of, say $300,000 to $550,000. Good time for a reality check.

First off, let’s agree that new is relative and often means newish – say 2007 and younger. It also hints upwards of not-so-new: per square foot, 57% more than the median for all modern homes on the market. You may want to dig a bit deeper in the folds of your sofa if you look at median asking: $3.5m versus $1.3m; more stats below.

Aiming for a teeny tiny house-lette won’t get your wallet off the hook, but you'll have lots of room to roam. New homes are spacious: 5,425 sf or 499 sqm under air (median size; too many outliers to use average. – For new modern townhomes, see this previous post.)

Some of the new modern homes are simply spectacular – thank goodness, it’s all a matter of taste. If you are in the market for a newish modern home, here is a peek at what to expect.

At the upper end: 
Miami Beach waterfront, with 10 bedrooms, 12 bathrooms, 20,000 sf (1,840 sqm), pool, 5-car garage, built in 2008. On 260' of water, two docks, lap pool and spa, elevated guest house/cabana, oversized rooftop terrace, double high-end kitchen appliances, staff house, generator. Asking $19,500,000 ($975/sf).

At the lower end:
Southwest Miami, 4/2 with 2,220 sf (204 sqm), built in 2008. New home on corner lot, by award-winning builder, never lived in. Features high ceilings, porcelain bathrooms, European cabinetry, alarm- and surround sound pre-wired, recessed lighting, stone counter tops, stainless steel appliances, washer & dryer, California closets, wood wall paneling, 8 ft. tall doors, well-ready, has natural gas. Asking $390,000 ($176/sf).

Typical median-priced:

Fort Lauderdale waterfront, 5/6, built in 2009. Located in a cul-de-sac on 206' of water, with top-of-the-line appliances, pool, hot pool, high ceilings, marble and wood floors, audio/visual wiring throughout. All window and doors are commercial grade with impact glass. Asking 3,750,000 ($571/sf).                                                                                                           
Statistics: Modernist Single Family Homes ≤2007

Currently available: 41
Asking prices: $390,000 - $24,000,000, median $3,500,000
Asking per sf: $167 - $2,191, median $658
Size under air: 2,220 sf - 20,000 sf, median 5,425 sf
BR/BA: 3/2.5 - 10/12 with 3 guest bathrooms

Source: own data, compiled from SEF-MLS


A quick reminder to all prospective buyers: 


$8,000 First Time Homebuyer Tax Credit, means if you did not own a home in the past three years. And up to $6,500 for existing homeowners looking to buy a different primary residence. Details are here.

– Have a great Superbowl-weekend!

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