Teardowns in Fairview and Lucas

Will We See Teardowns in Fairview and Lucas?

11-7-07

The old and the new

A couple of years ago, I noticed a brand new custom home (not the one pictured above) being built on a nice, wooded lot in an older subdivision. The home looked a little out of place with 30 year old homes on either side of it. That made me start wondering when we would hit "critical mass" in regards to land prices outstripping the total value of older, functionally obsolete homes.

By "older" homes I am talking about 30, 40, or 50 year old residences that have not been updated. And by "functionally obsolete", I am referring to homes that are way too small for today's buyers with small rooms and living areas, not enough bathrooms, low ceilings, single car garages (or none at all), etc. It would cost more to build around those homes than to knock them down and start all over.

Please Note Here - I don't want anyone to misinterpret what I am trying to say and become offended. I am not suggesting that every 30 year old home is a tear down. That couldn't be further from the truth. There are too many 30 year old homes (and much older) to count in Fairview and Lucas that have been nicely updated and have tremendous ambiance. I am referring to homes that would be too expensive for any buyer to either update or add on to.

Until just recently, the sellers of those older, functionally obsolete homes were in a bit of a rough spot. Those homes are not going to appeal to today's buyers to live in, they are too expensive to renovate or add on to, and land prices hadn't escalated to the point where the sellers could completely write off the value of the home and still do well on the sale. But that is slowly changing.

When the price of land becomes so high that homeowners can sell their property on land value only with absolutely no value given to the home, you are going to start seeing more tear downs and new homes in older subdivisions. Think Highland Park on a much, much smaller scale. We aren't there yet, but I have a hunch we will be in the next 5-10 years if this phenomenal growth and high demand continues.

Keep in mind, some of the older, functionally obsolete homes are also sitting on the most beautiful, wooded lots. Those homeowners got here first and put their homes on the best land. Fairview buyers are now looking at well over $200K for a one acre lot, and I can guarantee you, that lot will not be heavily wooded. Those prices start to make the beautiful lots with older homes much more appealing, even if the existing home has no value to the new owners.

As a final note, I am writing this article on the evening Fairview and Lucas residents passed a $78.5 million bond package for Lovejoy Independent School District. It was voted in by almost a 4 to 1 margin. That is a strong testament to how deeply committed we are towards our kids. I am so proud to be a part of this community!

Any Realtor who knows this area will tell you Lovejoy ISD is the main catalyst for this growth. This is a small, property wealthy school district comprised of single family homes on acreage. We just don't have many of the factors that tend to drag down the larger school systems in heavily populated areas. In the politically correct society we live in, I almost feel guilty saying that, but it is what it is.

This area is going to continue to prosper. You can bet that land and home prices are going to continue to increase. More and more people will discover what a wonderful quality of life is offered here, and they will want to be part of it. If you already live here, you know what I am talking about.

Disclaimer: All measurements are shot with an electronic laser distance finder and the distances rounded off to the nearest foot by Broker. While these devices are generally reliable, they can return false readings. Broker advises Purchaser to rely strictly on their own measurements and findings. All information provided herein has been provided to Broker by Owner and/or other reliable sources. Although Broker has no reason to doubt information provided herein, Broker does not warrant or guarantee it.