Hello everyone and Welcome to another
episode of Selling Greenville your
favorite real estate podcast here in
Greenville, South Carolina, I am your host
as always Stan McCune realtor right here
in Greenville you can find all of my
contact information in the show notes
for any of your real estate needs you
can reach out to me I'm a realtor that
is my job this podcast does not make me
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in any way that you please just do
those things I would really appreciate
it
all right we've had a few weeks where
we haven't really talked as much about
data and I know a lot of you guys are
data junkies so I want to get right
back into the data and specifically I
want to address something that really
since I've started this show has kind of
come up a lot lately but really in
more recent really the the the past year
has been a lot more of a common talking
point and a lot of my listeners are
unsurprisingly from out of state A lot
of people that are researching
Greenville are interested in the upstate
of South Carolina they're looking to
move to Greenville County Pickens County
Oconee Anderson County Spartanburg
County any of these counties these are
all part of the upstate and Realtors we
work all of these different counties I
call the show selling Greenville because
I live in Greenville specifically
and Greenville is obviously the
biggest metro area that is in this area
but we work all of of those different
counties and that is what our MLS the
Greenville MLS really covers all of
those counties as well
but what has happened frequently as I've
as I've accrued more and more of these
out of state listeners perhaps Watchers
now that I have this YouTube channel
as more people from out of state are
listening in they are coming to me with
questions about you know hey I'm not
seeing a whole lot that compares to what
I have here in Miami or what I have here
in Chicago or what I have here in
Houston or in Tucson or in San Fran or
whatever the case may be and so what I'm
thinking about doing is buying some land
and then building I don't have land
where I currently am I would like to
move to the Carolinas the Carolinas are
supposed to be cheaper and I and that
will allow me to buy land and then build
a custom home that compares to what I
have currently in the big city that I'm
coming from and then that'll be a a
marriage made in heaven right I can have
the the great house that I have in the
city I'm coming from but I'll move to
the Carolinas and have more land
property taxes will be lower it'll just
be and and it'll everything will just
Cost Less and it'll be it'll be great
and what invariably happens is people
start to get into we start to
actually dig into the options when it
comes to buying land and building new
construction and invariably it is
actually a lot more expensive than
people realize that it's going to be
they just you know I just think we
people think that the Carolinas are just
so much cheaper than the rest of the
country that is just going to cost a lot
less to build in this area and I hate to
be a Debbie Downer and I hate to be the
one to bring bad news but here's the
reality of the situation it costs way
way more to both buy land and to build
now than it did in
I mean whatever the early 2000s the 90s
the past 20 30 years we've seen all of
these costs go way way up and it's it's
been dramatic and it's just it's at
every level right labor costs more like
I said the land costs more the taxes are
more expensive zoning the the
permitting costs more I mean literally
at every single level it's more
expensive and so if you're moving from
you know like Irvine Texas for
instance I'm just throwing that out
there this by the way this podcast this
isn't for any individual if you're
listening to this and you're like oh I
think Stan recorded this for me I am not
recording this for you I want to make
that clear I'm recording this for the
dozens of people that I've had these
conversations with that have caused me
to think you know what maybe there's
something in the data that I should that
I should talk to people about here
but let's say that you're in a 30
year old home in Irvine Texas and you
know it's I don't know four thousand
square feet and you could sell it for
for eight hundred thousand dollars I'm
just spitballing I have no idea I don't
know anything about Irvine
but you could not build something like
that in Greenville in 2023 you couldn't
build a 4 000 square foot home on
land of any size a postage stamp lot you
couldn't build a 4 000 square foot home
for eight hundred thousand dollars and
so these are the types of conversations
I'm having with people trying to make
sure that people understand
you know hey this is the way the
market is it's also important to realize
that you know you can always find a
builder that will quote you a certain
price when I say you can't do something
I'm not saying literally that you can't
do something in every instance in some
instances I'm saying you don't want to
do something could you find a builder to
build you a 4 000 square foot home for
eight hundred thousand dollars
and include include the land with it
you probably could you probably could
would that be a nice house would that be
your standard Greenville 800 000 square
foot house no that would be a budget
construction that would just be really
large and it would probably be on a
small lot
and now you're saying where's your
data behind that well
I'm glad that you're here because that
is what this podcast is going to be
about so I looked what I did in
preparation for the show by the way I'm
juggling a lot of data and I'm not gonna
if you're watching on YouTube or
thinking about watching on YouTube I'm
just gonna apologize in advance I don't
have this data in a way that I can
really share it it's just an in a bunch
of tabs in a spreadsheet and honestly
it's a lot for me to keep up with as I'm
going through this and I might even have
to go back and correct something
you know as we're doing the show I
might forget something
but I'm not going to show any of this
data I'm not going to share my screen or
anything of that nature for for this
specific show
but what I did was I looked the past
six months Greenville MLS what new
construction has sold just to get a lay
of the land what are we seeing in the
new construction Market in Greenville I
don't want to just be basing things off
of what I feel what Vibes I'm having
right now I want to actually see what
the data says and so I started high
level and then I started to Reef find my
search results and we're gonna go on
this little journey together the same
Journey that I went on as I went through
this and I had no agenda I really wanted
to just see what the data said so that I
can talk to you guys intelligently about
what the new construction Market is like
so what I did was I took all of the
new construction sales from the past
six months and then I broke it down by
median and average median being the
middle number in a set of numbers and
then the average just being the average
or the mean and I looked at the average
and median acreage price and price per
square foot
in order to try to figure out okay what
exactly is going on here and then I
started to break it out some other ways
that you'll see here shortly so let's
just start high level all of the new
construction sales in Greenville MLS
which includes Greenville County it
includes I've already mentioned a bunch
of these Spartanburg County Pickens
County
basically the greater Greenville area
is going to be in this data set
what we came up with was this a median
of 0.19 Acres so a very small lot is
your median new construction in the
greater Greenville area so what this
tells me is that this is pulling a ton
of production Built Homes okay so keep
that in mind when you're picturing what
type of home I'm talking about I'm
talking about a home on a small lot
generally speaking in a neighborhood
that has a bunch of homes that probably
look exactly like it the median sold
price was 329 000 and the median sold
price per square foot was
160.89 okay so those are all production
built neighborhood types of of numbers
and some of these are in rural areas
that are going to be cheaper than for
instance City of Greenville areas or
Lakefront areas or Mountain View areas
whatever you know whatever things are in
high demand right now
the average of these numbers are are
pretty much always going to be higher in
averages because they're going to be
weighted more by the more expensive
property so the average for the
entire data set was 0.34 Acres a sold
price of 368 753 and a sold price per
square foot of 166 dollars and 48 cents
okay so that gives you the Baseline what
is generally speaking
on a very broad level new construction
in the upstate of South Carolina selling
for those are numbers that you can get
on average generally speaking in the
160s a square foot range for a pretty
small lot and these are also going to be
pretty small houses too right but
generally speaking you're talking about
160 a square foot and you're talking
about a 329 000 price point what we're
looking at is generally a you know
roughly 2 000 square foot house
something like that
so then I took that data and I said all
right well let's look at Greenville
County specifically and again this show
is selling Greenville some of you might
be interested in different counties but
at the end of the day we're going to
have the biggest sample size in
Greenville County and so I I limited the
data specifically by Greenville County
where do we go from here all right the
median acreage for Greenville County for
new construction was 0.18 Acres so a
slightly smaller still a very very small
lot 0.18 Acres average sold price
of 367
540 so 367 and a half and and a sold
price per square foot substantially
higher 176 dollars and 24 cents that was
those are all the medians these are all
still production built numbers okay so
if what you're visualizing you should be
visualizing a house that looks like all
of the other houses next to it and all
of these houses are very close to each
other same thing as what we just talked
about except it's a lot more expensive
now that you're in Greenville County
proper you go to the average again the
averages are all higher 0.28 Acres 410
000 average sold price
181.50 average sold price per square
foot
so these numbers are starting to tick a
bit up so obviously these numbers are
all skewed by the fact that these are
production built houses it's really hard
to take production built houses out of
the data set but what you can do is you
can remove homes that are in
subdivisions so I can set the
subdivision to none and that is
precisely what I did and what that
roughly gets me kinda sort of custom
built homes these are homes that were
not built in subdivision now
I will caveat that there are some
subdivisions that have custom-built
homes this is not a perfect exercise you
know for instance the cliffs right
you can build custom-built homes in the
cliffs they have very strict
architectural standards
but at the end of the day those are
gonna be Custom Homes even though it is
a neighborhood
and so some of those are not going to
be in the sample that's okay it's still
going to give us a high level idea of
what's going on in the custom home
world so we removed all homes we're
still in Greenville County but we're no
longer in subdivisions here are the
medians now now our lot size is a lot
bigger we're at 0.45 almost a half acre
with an average oh sorry with a median I
want to get these where these
analytical mathematical terms right the
median sold price of 462 500 and the
median sold price per square foot now
way way higher than what we've been
talking about
224.50 okay remember I was saying you
don't typically want to build if if you
have someone quoting you a 4 000 square
foot home for 800 000 including the
land run one don't walk that is you
you're nowhere near the median of 224
and that and this does include the land
by the way these are homes that were
built on Lots
generally speaking at least that's
the way it should be the way it's
entered into the Greenville MLS so
224.50 that's your median your average
is again a tick higher 0.69 Acres so
nearly three quarters of an acre sold
price 493 600 and average sold
a dollar per square foot
of 229 dollars a square foot okay so
these numbers are substantially higher
than the numbers we just looked at that
included subdivisions and and by the way
I so I didn't run these numbers that
that only showed the ones in
subdivisions
but remember that those numbers that
I showed you within the subdivisions
were were also including the non-sub
division homes so before when I said 176
dollars a square foot for all the homes
in Greenville County that included all
of these that have a median of 224
dollars so even those numbers that we
looked at before that included all new
construction in Greenville County were
were really skewed by these more
expensive Custom Homes so there's a big
big price disparity between if you're
building within a subdivision generally
speaking a custom-built home versus
these production Built Homes that are
going to be within subdivisions You're
Building outside you're building your
own custom home a pretty good rule of
thumb 225 dollars will get you an
average a normal a standard non-sub
division custom built home that's going
to be in the roughly four to five
hundred thousand dollar range okay
all right so now we have that done so
what I did then was I also looked at
land that was sold in in the in
the upstate as a whole and then in
Greenville as a whole so let's look at
the cost of land because again this is
another question that comes up so the
average sold price for land that was
listed was sorry the median was 75 000
with the median acreage of 1.47 Acres so
that comes out to an average price per
acre of fifty one thousand dollars for
all of Greenville MLS not just
Greenville County specifically
the average substantially higher
the average was $153 in change
153,000 in change for 7.68 Acres an average
of 20,000 Acres so this is what we see
this is what's going on here why is
there a difference between 51 and per
acre for the median and twenty thousand
per average the more Lanes you buy the
the less it costs per acre and there's a
lot of reasons for that
one of the main reasons is you're
typically buying in a more rural area
and so the cost for the land is going to
be less if you're buying 10 acres you're
not buying 10 acres within the city
limits of Greenville if you could do
that the cost would be astronomical it
would be well north of 51 51 000 an
acre
but if you are buying within a
more densely populated area the price
per acre goes up and that's where that
fifty one thousand dollar per acre
number comes more into play so just to
give you some context there but then I
took this data and I analyzed it within
again Greenville County
and here's what we came up with for
medians within Greenville County median
sold price of and actually let me go
back and look and see if I messed this up
oh no I actually I thought maybe I had
that that mess up that I alluded to
might happen before but I actually
didn't
all right so Greenville County land
sales past six months the the median
sold price was 99 000 for 1.2 Acres so
that comes out to about 83,000
and change per acre in Greenville
County if you want to look at average
the average sold price was 155 000 for
four acres that is approximately half
forty one thousand per acre which
is which is actually not that far off
from the median per acre that we
looked at that was just everything in
Greenville MLS remember that was 51 000.
now we're looking at
if you're if you're looking at
averages that includes more acreage now
that number doubles right because before
we were when we were looking at the
average acreage for just Greenville MLS
as a whole it was 20 000 per acre now
that number is 41 000 on average with a
median of 83.
and so here's what you should expect
if you want to be in Greenville County
in a more densely populated area you're
going to be paying 80 to 100 000 per
acre if you're wanting to be if you're
wanting more acreage outside of
Greenville
main part of Greenville you're going to
get four five six acres maybe in the
Greenville County side of Greer maybe in
Northern Greenville County near Slater
Marietta maybe down towards Fountain Inn
some of those more rural areas you can
expect a price between 40 and 50
000 per acre
all right so
now let's talk about what this actually
translates translates to I had someone
tell me recently oh you're clearly from
from Greenville County the or from
the south the way you talk no I'm from
New Jersey originally but I am
married to a woman from Alabama and
actually as I'm recording this today is
our anniversary we've been married for
14 years
so Pat myself on the back for that
but and I guess maybe I should
knock on wood as well
but anyway I have some Southern
influences in my accent apparently and
that's not not to be super
surprising here but here's what I did
okay I took the well let's back up
for a second let's say that you are
you're moving to Greenville from out of
state and you're in that situation where
you're like or maybe you're you know
moving from within Greenville who knows
I know people that are that live in
Greenville that are like you know what I
want to go out and buy some land and
build a custom home it's a very common
thing a very trendy thing right now
so let's say you you're like you know
I want a 2500 square foot home on five
acres of land that's kind of a thing
that I hear Loosely speak on speaking
maybe a little bit larger home than 2500
square feet but Loosely speaking I hear
people throw those types of things
around all the time
here's what I did I took the the
amount of well actually hold on this
might be the mistake that I made give me
a second here
okay we'll have to come back to that I I
think I think I still did this right
what I did was I took the the
number of Acres five acres times the
average acreage in Greenville County 41
000 and then I combined that with
adding
2500 square feet times the custom home
price per square foot of
200 24 000. sorry 224 give me a second
$224.50
per square foot so that was
what we were talking about before is in
the custom no subdivision neighborhoods
that's what we are that's what we're
experiencing and then I basically just
added those numbers up so taking the
average
acreage price times five acres the
average price per acre times five acres
in Greenville County and then taking the
average price per square foot times 2500
what do you come up with you come up
with 768
761 now that number is probably a little
bit artificially inflated and this was
something I thought that I had that I
had corrected but apparently I I haven't
corrected maybe I corrected it somewhere
else in here
I ran this this data a few days ago
so it's not entirely it's not like
really really friend of mine
but that number is a little bit high
right because that 200 24 dollars
part let me pull that back up here in
front of me
the
224.50 for the price per square
foot
does technically include .45 Acres so
actually you know what I'm just going to
correct this on the Fly let's just say
4.5 Acres
which is really gonna be five acres
right we have to adjust this for
essentially half an acre in order to to
make this accurate because that two
2450 for the price per square foot for
those Custom Homes was assuming
basically half an acre so if we do that
we come up with a price of 748
000. so basically 750 000 that's what
you can Loosely speaking expect for a
five acre house a a 2500 square foot
house on five acres new construction
basically everything at average okay
all right
how does that
compare then with if we're just looking
at non
new construction let's just look at
homes that have actually sold roughly in
that same kind of same kind of house
same kind of acreage what do we have
when we look at Greenville County six
months
the past six months Greenville County
Properties that have sold on five acres
or more I pulled all of those as well I
did not pull this by out of subdivision
so these include homes that are in
subdivisions it ended up with 50 results
so 50 homes the past six months in
Greenville County that included a
house with at least five acres here are
some of the numbers that that came up
with the median acreage was 7.84 so
quite a bit higher than five the median
sold price was 707 thousand
the median sold price per square feet
was 280 000 with a median total square
footage of
2517. so these are slightly larger
houses with about 50 percent
more land and it's about roughly
40 000 ish less than the new
construction okay on if you we want to
look at the averages the average was
10.6 Acres with an average sold price
of 850 000 price per square foot three
hundred six thousand with a a total
square footage of 2941 those are the
averages for these homes that I was
looking at Within
within Greenville
so let's compare thou Apples to
Apples right so we looked at a home just
kind of a let's just call it a spec home
right a a make-believe spec home that
was 2500 square feet on five acres in
Greenville County came up with that
would cost roughly 750 000 but let's
compare to this median home that has
7.84 Acres that has
2517 square feet what price would that
come up with if we built that home from
scratch remember it costs 707 500 to
purchase this home this is already a
home that was already built what would
it cost to actually build this home if
you
do run these numbers all again right you
you base your acreage price on forty one
thousand five hundred dollars per acre
you base your build cost on
224.5
per square foot
and you account for the fact that this
is where I had backed out that point
four or five acres earlier what you come
up with is a total price of 871
766. so that's a difference of
basically what about a hundred sixty
thousand Loosely speaking is is what
we're talking about is the difference
between if you bought
the same house on the same same size
house on the same amount of acreage
versus if you built it within Greenville
County it's going to be about 160 to 170
000 hours more to build that house
versus to buy the house that has already
built now what do I think about that
number I think that number makes a ton
of sense because if you're buying homes
in that seven to eight hundred thousand
dollar range that's on 7.8 Acres that's
2500 or so square feet that home's gonna
need some work and that is just the
reality of the situation it might need a
hundred sixty thousand dollars worth of
updating
I actually talked about this on a
podcast I don't know probably a couple
of years ago where I talked about the
dirty secrets of luxury housing in
Greenville County the dirt the main
dirty secret is that most of these what
we call luxury houses need quite a bit
of updating
and so the question is do you want to
buy the house and then update it or do
you want to just go ahead and and pony
up the extra 160 170 up front to just go
ahead and have it custom from the get-go
most people that have that kind of money
that are looking to spend that kind of
money would just want to go with the
custom house
you do have to remember though that a
quality of construction even with a good
builder at 224 dollars a square foot
isn't going to be as good as the quality
of construction for the home that was
built 20 or 30 years ago is just the
reality of the situation now there are
some things that'll be nicer in a newer
home it's going to be more Outlets more
opportunity for smart home systems
obviously you're it's custom so you can
do whatever you want to it in theory
but in terms of quality of a
construction there's going to be some
things you know rather than brick
siding throughout you might have to go
with Hardy Ward siding for instance
things of that nature
but in terms of and and I don't even
remember where exactly I was I was
going with all that kind of like it's
in the middle of the day now and and
I'm recording this on Tuesday my Monday
was crazy as usual my Tuesday has
been pretty full
so just bear with me here but I'm
looking at this and I'm like you know
what
160 000 to 170 000 difference that that
makes a whole lot of sense oh where I
was where I was going with that so you
you have a few challenges with building
that you have to be aware of I just
listed off you know that the quality
might not be quite quite the same you
also have to remember
finding the right contractor is a
challenge and also finding the right
land is a challenge right a lot of the
Prime land already has housing on it
and so that's where sometimes it's
easier if you're looking for a house
with land
sometimes it's just easier to buy the
house that's already built just if you
need to gut it or if you need to to
update it however
you're gonna find yourself in many
cases that that's the better option
now
I'm not trying to discourage anyone
from from going the route of of
buying land and then trying to do a
custom build on it that's not the point
I'm just trying to be realistic about
the challenges in doing that it is
expensive
and again we're just looking at averages
and medians here we're not even looking
at the the top end of the market
but it's it's pricey and it can be a
challenge to find the right spot to
build on that is honestly the number one
challenge because here's the thing the
prime con the the prime land that's
out there is oftentimes these big Big
Lots that are you know 70 80 acres
or more that are going to be
basically that are being sold to
developers and the developers can do
whatever they want with it
but usually the most Prime real estate
is not just going to be 2 5 10 acres
generally speaking the prime real estate
is in a huge
a a huge pot of land that you have to
buy the whole plot and then you can
subdivide off a part for yourself if you
really want to do that and so those are
some of the challenges
that people run into so I just want to
be realistic I want people you know all
of my out of state listeners that are
looking at coming to this area I want
you to have some actual data some
concrete numbers to be thinking about be
thinking about if you're if you're
looking at Greenville County be thinking
about forty one thousand dollars an acre
be thinking about 225 dollars a square
foot if you're if you're looking outside
of Greenville County those numbers are
going to come down a bit if you're
willing to build on a production-built
neighborhood and not have very much land
just have US postage stamp size lot
those numbers are going to come way way
down and so that's some of what I think
is helpful that this confirmed what I
already knew none of this came as a big
surprise to me like I said I didn't go
in this trying to confirm anything in my
mind but it but it did it confirmed
exactly what I thought it was going to
say to a t all of these numbers were
like yep that makes sense yep that makes
sense okay
and so hopefully that makes sense to
you guys I'm happy to answer any
questions that any of you might have I
know that was a lot of data but hey you
guys have had a few weeks off from the
heavy data episode so I think that
you're in the mental space to be able to
handle that so just let me know if
you have any questions I'm happy to
answer those if you want me to it
doesn't take me long to run these
numbers if you want me to run numbers
even for like a specific County or a
specific area draw radio send me a map
and be like hey can you do that kind of
analysis for this area absolutely let me
let me do that even if you're not a
client obviously there's a certain level
at which if you're just asking me to do
a bunch of of homework for you I would
want you to be a client at that point
but just a one-off just to see if I can
if I can help you on something like that
I'm happy to if you're listening to the
show even if you never become a
client you're indirectly a supporter of
me and my business and I appreciate you
guys and I'm happy to try to set you
guys up for Success even if we never do
business together
that's it for today's episode you can
find all my contact information in the
show notes please if you want to reach
me I suggest texting first
I get so many spam calls I'm going to
most likely ignore your call if you call
me out of the blue
so please text me ahead of time
feel free to email me as well if I don't
respond it may have gone into my spam I
respond to all of my emails with a Max
24 hours usually much quicker than that
usually within six hours
I'm I operate on an inbox zero
level when it comes to my email so I'm
trying to respond and get rid of emails
as quickly as possible but feel free to
reach out to me with my contact
information in the show notes if you
like the show if you love the show if
you want more of this content I've got
another data oriented episode coming up
next week I think you guys will like to
so please like subscribe rate review
comment all those things and we will
talk again next time
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