09/09/2025
🏡 We walked away from this property, and here’s why ⬇️
The seller wanted us to rehab instead of tear down. On the surface, that might save costs — but this home is a wood frame/crawl space, which isn’t highly desirable in Florida. The real issue? The foundation was in terrible shape. Cracks in the upstairs walls and ceilings, dips in the flooring, and spray foam “repairs” instead of real fixes made it impossible to compete with the new construction comps nearby.
When we shifted the conversation to a tear down, the seller said she had two buildable lots worth $500k each. Here’s the problem:
✅ The lot hasn’t actually been split.
✅ Zoning requirements for minimum square footage, width, and depth made it very tight.
✅ A builder across the street just had to tear down a brand new home due to encroachment.
Because of that, a 2-build wasn’t realistic. Our best plan was one beautiful new build with a spacious yard on this corner lot — something we’ve already seen sell successfully in the neighborhood on a similar-sized property.
But when we explained our numbers and why we’d have to come in lower, the seller disagreed. She decided she’s going to rehab it herself — and we respect that decision.
💡 Here’s the lesson:
Most sellers see new construction values and think the land should be worth half or more of the ARV. But reality is different. If a new build is worth $2M, it can cost around $1,050,000 just in construction, not counting permits, demo, holding, and realtor fees. That’s why investors typically pay 20–30% of ARV for land.
At Stonebridge Home Buyers, we don’t make “lowball offers” — we make real offers based on numbers, repairs, and zoning laws. Sometimes that means walking away, and that’s okay.
