Sunday, August 24, 2008

What is a Cliffs at High Carolina Lot Worth?

In November 2008, The Cliffs Communities, Inc. will present land in their latest residential development, The Cliffs at High Carolina. Presently under construction, this 3,200 acre site is located on steep mountain slopes near Asheville, North Carolina. Lots in this subdivision will be priced from about $500,000 to more than $2 million.

The Cliffs Communities, Inc. promotes in-house financing on their website and advises prospective buyers that the company has "selected several outstanding banking and lending institutions as The Cliffs Communities Preferred Lenders based on professional reputation, lending programs, and their working knowledge of the needs of today’s luxury real estate client."

It is not unusual for land developers to facilitate sales by directing their clients to short term lenders but these loans can be financially devastating. Borrowers trust that the developer will remain solvent and that the future real estate market will support speculative valuations. Today Western North Carolina borrowers are in debt for developer-arranged lot loans that are worth less than the original sales price. Interested parties should note that there are a growing number of failed or distressed Western North Carolina resort developments. For information about these projects please follow hotlinks.

Village of Penland
Wild Ridges
Grey Rock at Lake Lure

The Cliffs Communities, Inc. has completed a number of subdivisions. Their website provides the following sales listings:

The Cliffs at Glassy-new homesites $165,000 to $1,100,000, other homesites $129,000 to $750,000.

The Cliffs at Mountain Park -no new homesites, other homesites $449,900-$625,000

The Cliffs Valley-new homesites $246,000 to $2,306,000, other homesites $319,000 to $1,200,000

The Cliffs at Keowee-new homesites $245,000 to $2,250,000, other homesites $610,000-$1,399,000

The Cliffs at Walnut Cove-new homesites $495,000-$2,800,000, other homesites $695,000-$1,350,000

What about Cliffs land resales on other realty sites? A realtor is selling Cliffs at Glassy homesites for $149,900 to $330,000. Another realtor is listing homesites from $67,500 to $165,000. A Cliffs at Keowee Vineyards resale lot is priced at $162,900.

How can land, in a yet to be developed Cliffs subdivision, be worth more than land in a completed Cliffs Community? This question should give prospective buyers pause about the present and future value of land in High Carolina.

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