Newsflash: Purchasing a home in a developing neighborhood, have a question about resale

Hello,My wife and I are about to put an offer on a new construction home in Davenport, Iowa. The house is $274,900. We came to Iowa from Tennessee, where it seems houses are ~$100,000 higher up here than down South. We have done our research, gotten over our price shock (with how much higher prices are up here), and are ready to make a purchase. A little bit about the house itself: Its 1450 sq/ft, ranch style home, decent yard size, stone master bathroom, and a 1300 sq ft unfinished basement. There are home lots surrounding our house, which means all of the area surrounding this house will be new construction as well.In our offer letter, we are going to ask that the home builder finish off a rec room and bathroom in the basement, and we will give them the asking price. I will want to do some cosmetics to the backyard, and add some nice appliances/new kitchen sink. My question is, if I had to sell the house in 1 to 2 years, can I expect to make money on the house based on the upgraded basement/ect, new construction location, and rise in property prices in the area? Is there a general indicator on how to figure this out?In Davenport last year, there have been a few cases of new construction selling for around $240k and selling again a year later for up to $30k more.What do I need to be aware of to determine if I can make money in a few years on this house?Thank you!



Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )


Connecting to %s