Homebuilders bidding on the Marblehead property on the coast in San Clemente are overbidding in anticipation of another year of rapid appreciation.
A prime piece of Coastal California real estate is for sale, and the homebuilders vying for the opportunity to erect sticks and bricks on the site are bidding heavenly sums. In any competitive bidding situation, the bidding party with the most aggressive assumptions wins the day. The large homebuilders all face the same basic cost challenges, so it’s the one with the most aggressive assumptions on future home price revenues who will ultimately get this property. If those assumptions don’t come to pass, they won’t make any money, and they just might lose a bundle.
http://ochousingnews.com/will-the-homebuilder-at-san-clementes-marblehead-make-money/
Homebuilders bidding on the Marblehead property on the coast in San Clemente are overbidding in anticipation of another year of rapid appreciation.
A prime piece of Coastal California real estate is for sale, and the homebuilders vying for the opportunity to erect sticks and bricks on the site are bidding heavenly sums. In any competitive bidding situation, the bidding party with the most aggressive assumptions wins the day. The large homebuilders all face the same basic cost challenges, so it’s the one with the most aggressive assumptions on future home price revenues who will ultimately get this property. If those assumptions don’t come to pass, they won’t make any money, and they just might lose a bundle.
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