I am a potential first time home buyer in San Diego, California and like most buyers these days in Cali I find the market to be pretty expensive and I am trying to come up with innovative ways be able to afford a house.
One of the idea was to see if I can buy land and build my own house. It may or may not be cheap. Maybe it would be way pricier than buying a home on Zillow or from a builder, however, I wanted it to be my own conclusion, rather than it coming from someone else. I decided to do my own research and crunch my own numbers.
Currently, if you want to buy a brand new 2500-3000sqft house in a good neighborhood of San Diego, it may cost around $800K. From my research, I found that it costs somewhere around $200/sqft to build a house. Of course, that is a ball-park figure.
I came across a 1.9 acre piece of land (83000sqft) for $600K in a very good neighborhood and school district. 83K sqft can accommodate at least 10 houses.
Looking at the numbers it looks like a bargain but it has been on Zillow of 4 months. I would definitely like to go and check on this land, but how can such a deal have no buyers for 4 months? Could there be something wrong?
What could be potentially wrong with this? Am I missing something very obvious?