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Many people get stuck when it comes to deciding what type of property to build. It’s a crucial decision, but the good news is that there’s an easy way to figure it out: research your target area and analyze what types of homes have already been built and sold successfully. By doing this, you can identify trends in the market and make an informed decision about what kind of home will work best for your development.
Start with Market Research
The first step is to assess the area where you want to build. Look at the types of homes that are already selling in that neighborhood or region. Here are a few key things to focus on:
Home Size: Check the average square footage of recently built homes.
Style and Layout: Look for trends in home design—are most properties single-story or two-story? Do they feature open floor plans?
Number of Bedrooms and Bathrooms: Determine the area's standard number of bedrooms and bathrooms. For example, a 3-bedroom, 2-bath home may be some neighborhoods' most desirable and expected configuration.
Garage Size: Pay attention to whether homes typically include garages, and if so, how many cars they accommodate. In certain markets, a two-car garage may be a must-have.
This research will help you understand what buyers are looking for and what types of properties are selling quickly.
Identifying Established Trends
In most markets, there are already building trends that you can follow to guide your project. If you’re developing in an area with a lot of new construction, you can simply look at the homes that are performing well in terms of sales and base your project on those existing trends. This will give you a solid foundation for your development.
If there isn’t a lot of new construction in the immediate area, expand your search a few miles out to see what’s selling in neighboring regions. Real estate is often influenced by surrounding areas, and understanding the broader market will give you a good sense of what’s in demand.
Looking at Older Properties
Another helpful strategy is to look at older homes built decades ago. This can give you insight into the current living standards for that area and what might be missing in the local market. For example, homes built in the 1960s and 1970s may have been smaller, with two bedrooms and one bathroom, and may lack the modern amenities that today’s buyers expect.
If older homes dominate the area, consider developing a project that builds on these existing homes but with updated features. For example, instead of a two-bedroom, one-bath home, you might build a three-bedroom, two-bath home with a two-car garage. This provides an upgraded living standard while still fitting within the style and size of homes in the area.
Determining Key Property Details
Once you’ve done your research, you should have a clearer idea of what type of home to build. By understanding the local market, you can determine:
Home Size: How big should the property be?
Lot Size: What size lot will be appropriate for the type of home you’re building?
Number of Bedrooms and Bathrooms: What are the standard bedroom and bathroom configurations for your market?
Finishes: What level of finishes (flooring, countertops, fixtures) should be included to appeal to buyers? This can range from basic finishes in more affordable homes to high-end finishes in luxury developments.
Tailoring Your Build to the Market
In the end, your goal should be to create a property that meets the needs of the local market while also maximizing your potential return on investment. By researching what has already been built and sold, you can tailor your project to fit the demand in your target area. Remember, building a home that’s too small or too large, or including features that buyers aren’t looking for, could make it harder to sell or rent the property later on.
Need Help Deciding What to Build?
At bttrbuild, we specialize in helping developers make informed decisions about what to build based on market research and trends. If you're unsure about the type of property that will perform well in your area, we’re here to guide you through the process. Schedule a call with us today to learn more about how we can help you plan and execute a successful development project.
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