I think there are a lot of savvy buyers who are finding that building today ($700K and up) in the Charleston marketplace makes a lot of sense. Those that say you can't build a new home today for the price of a comparable 'used' home is mistaken because they are basing this off the LIST price of the home which is based on what they overpaid in the last couple of years.

And list price means absolutely nothing and any discount off this price is misleading. If a home was listed for $1.2M and you got it for $700K, you still overpaid - but if you convince yourself enough that your supposed $500K discount was a great deal, good for you.

You must realize that you just set the price ceiling and it is just a matter of time until a comparable home in that neighborhood sells for less than what you paid in your 'deal.' Not that good of a deal anymore now is it?

The bottom line is the vast majority of higher end homes built within the last 4 years are way overpriced because they overpaid for labor, materials and land. And to think they can pass that poor business decision onto a informed buyer is folly.

There are very few suckers left in Charleston today.

I am in the exact same boat! It's a tough call. I'm not sure that I agree with Judy's analysis of the real estate situation in Mount Pleasant. Realtors in this area have been using the same lines for the past 2+ years while inventory has been building. Several homes have gone under contract recently but there are still a lot of homes coming on the market too. Summer is always a busy time and couple that with ridiculously low mortgage rates and you're bound to sell some houses. The minute the rates go up, we'll see a pull back. I am not opposed to buying if the right deal comes along but I agree, prices are still unrealistic. It's like nobody wants to admit there was a run up in prices for 5 years fueled by low interest rates, crazy mortgages, and speculators looking to make a quick buck. Prices are still well above where they would be if they had followed a natural progression. It's unfortunate that realtors are still trying to convince us that the prices are great and will only go up from here.

Everything Judy said is correct but I have a little different perspective. New construction is my first love. I was a site agent for years dealing in custom builds and lot sales. Many....and I mean many builders are looking for clients that want to custom build right now. That same need trickles down to subcontractors. With new home sales down many people in that line of work need "work" and there are many deals to be had on lots too. Many builders will quote less per square foot and or work on a cost plus basis. We are remodeling our baths and using a wonderful custom builder to help us. His subs are fairly priced and the work is well above average. Hope this helps

My name is Judy Tatum, and I am an Accredited Buyer Representative and member of the Charleston Top Producers Club. I just sold my house downtown (two offers in the first four weeks on the market), and purchased a home in Mt. Pleasant in the Cathedral Oaks section of Seaside Farms. I know exactly what you are asking, since I had to make the same decision. The house that I bought went on the market for almost $1.2 million originally, and I ended up purchasing it for $700K. I was informed by the insurance adjuster that it would cost more than that just to rebuild the structure, even without taking into account the value of the land. This was NOT a short sale. There are some excellent buys still available out there, but you need to know where to look. By buying something the builder was desperate to get out from under, I got a much higher quality home than if I had chosen to build. My brother is a builder, and listening to him, I know that if you contract to build a house, you must ask UP FRONT for every plumbing fixture, light fixture, cabinet, woodwork detail, hardware fixture, appliance brand, tile, type of hardwood floor, carpet, and any other quality fit and finish item, or the builder will only give you an "allowance" for each, which will be for a much lower standard than you would probably prefer. If you choose anything above that standard allowance, you will be responsible for the price difference. My parents, my brother, and I all built custom homes in Florida, and we found out that to get what we wanted in the house, we had to pay a significant amount of money over and above the agreed-upon price per square foot. This is standard practice in the construction industry, and holds true even in the current economy. This is not to say that you should discount the possibility of building; only that you need to be aware of the pitfalls. I would also be happy to discuss with you options on architects, builders, design features to look for, and even building materials. (Have you considered building with SIPs? Structural Insulated Panels are hurricane resistant to 140 mph winds; mold, mildew, and termite resistant; and can cut your energy bills by up to 50%. Go to http://www.globalbuildlngsolutions.net to see more.)
Charleston is still one of the 25 best real estate markets in the country, and we have already noticed that prices are starting to stabilize. In Mount Pleasant, the price range that you are looking in still has some significant values available. I would be happy to set you up with an AUTOMATIC update system, where you will receive professional quality MLS reports every time a new home comes on the market, and every time a higher-priced home lowers their asking price to fall in your specified search criteria. I pay a considerable amount of money every year to access specific information that is helpful to my buyers. My services as an Accredited Buyer Representative are free to buyers, since the Sellers pay my fee if I bring them a qualified buyer. Please call me if you would like to talk more about Mt. Pleasant real estate, and your options. Best Regards, Judy Tatum 843-452-9084