Today, Replacement Housing is occurring throughout the metro area in all desirable neighborhoods and in a wide variety of price ranges. Building sites for this activity can generally be classified into the following categories: Vacant Land, Obsolete Houses, Marginal Houses and Premier Sites. There can be crossover, and these categories are also stratified by price.

Generally, more builders/developers will be found in the lower price ranges, with custom building by individuals in the higher ranges. This is not an absolute, however, as either can appear in any range or category.

Acquisition costs within a category can vary significantly and are affected by present availability and inventory, over-

all market conditions and the knowledge and sophistication of the buyer. Pricing factors are aggravated by the lack of specific sales data necessary to accurately determine patterns and price ranges. Additionally, site purchases can have an emotional component, especially in the higher priced custom ranges, which transcends normal economic considerations.

Extreme care and diligence should be exercised before acquiring any site, as there can be other factors like a changing municipal regulatory environment, size and suitability for intended use, pricing considerations, soil conditions, demolition costs and hazardous waste concerns to contend with. All are issues that can significantly affect a site's potential usage, desirability and costs.