Spec home in Tahoe / Truckee is it a good time to build one?

Building a spec home in Tahoe and Truckee can be a lucrative endeavor. You need to look where there's a need in the market place so you don't get burned. Right now I think you need to build on the high end or on the low end. Note, this is August 2014. On the low end there's very little inventory available. The primary buyers of these homes are full time residents. There are many more people with less money than more money. If you can pick up a lot for $85K, build a little ranch style home on it for $190. per sq. ft. that's 1,400 sq ft. 3 Bedrooms, 2 bathrooms, 2 car garage, you can probable make at least $50,000. selling it for $430K. This project should take 6 months to build plus 2 months to design and get approval equaling 8 months all together. If you want to build a spec home on the high end, you can go into Martis Camp. Buy a nice estate lot for $950K. Build a 5,000 sq ft. home for $450 a ft. You would have $3.5MM into it with an architect and commissions. Sell it for $5MM. Make $1.5M. This project would take about 14 months once you get into the dirt. Probably 2 months to design and another 2 months to approve. All in all 1 and a half years. The third option is to buy an older lakefront on Tahoe for about $3M. Put $600K into it. Sell it for $4.5M This project should only take 6 months. The market to avoid right now is the middle price range. I wouldn't build in the $600K to $1.5M mark. I've built several spec homes, my husband is a contractor and has been building here for over 35 years. Together we know a lot about building. If you want to chat about building a spec home, please give me a call. I'm a realtor here in Tahoe and Truckee and would love to help you out. I've lived here most of my life and know this place very well. Weather you are a contractor or an investor, it's fun to talk with other like minded people to get ideas and maybe see some of them come into fruition! Give me a call, I look forward to talking with you!