There are at least a dozen single-family homes on the market that are being sold with approved construction permits, architectural plans, or simply positioned as “opportunities to build your dream home.”
The trend in 2015? Hand off construction to buyers, who will hopefully pay a premium for lot value and approved (or unapproved) plans. In many cases, the owners (typically an LLC or contractor) may have more pressing projects and will agree to sell if the numbers add up.
Or, in the case of those selling properties without approved plans, they may be anxious that today’s market won’t be quite as strong by the time they can get plans approved and the property built.
These types of projects can be appealing for buyers tired of competing for the latest single-family homes in good locations. If you can afford the entry price, keep in mind a few ground rules.
First, you’ll be looking at construction costs of about $500/square foot. And if you’re taking on a ground-up project without approved plans, it will probably take anywhere from two- to four years to get through Planning, neighbors, permits and construction, as per contractors I know who routinely flip properties like this in Noe Valley and surrounding areas.
Visit my full blog post at Inside San Francisco Real Estate for a look at individual development projects that are available now. These include ground-up builds in Noe and Eureka Valley, as well as a Pac Heights mansion with fire damage.