Home Buying in Yorktown>Question Details

Ben, Home Buyer in Newport News, VA

New Construction in Yorktown

Asked by Ben, Newport News, VA Wed Nov 12, 2008

Why are the new construction house in Victory Meadows Yorktown so expensive? I look at the same model house in other area (Newport News and Summer Crossing Yorktown) and the houses are almost 100k below houses in Victory Meadows. They have 1500 and 1600 sqft house for 32000 to 35000 (isn't that overpriced?). Houses that are over 400k in this area are below 370000 in other areas close by.

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The prices are driven by the location. The prices in Yorktown tend to be holding steady. If you are working with an agent they should be able to run you a market analysis of the neighborhood and what the houses have been selling for. If you aren't feel free to give me a call.
0 votes Thank Flag Link Thu Oct 15, 2009
The builder at Victory Meadows built all over the entire Hampton Roads area. You'll probably see the same models a lot in the surrounding areas. The reason for the price difference is location. That neighborhood is around the corner from where I live and just on the border of Tabb and Poquoson or as I call it "Yorkosin'. Regardless of what we think about the pricing, the big difference is the location. You could see the trend last year comparing his Churchill Estates neighborhood in Tabb off of 134 to other, same models a few miles down Big Bethel in Hampton. If you're comparing the builder's work in Newport News -- say Peach Orchard, you're looking at many of the same floor plans (excluding the newer, smaller plans). The location in that Menchville area is great, but again, there is the value of location. Summer Crossing is also the same builder AND in York County, but it is in upper York and the school district is different. Depending on your work and lifestyle location, you may benefit from the price savings by being so far up into York. If you work around Nasa, you are minutes from the base. I've had clients willing to spend more to live in the Tabb area since they knew that they would realize the savings in gas and make up for it. Ben, it's really the simple rule - location, location, location. Don't count on this builder going out of business anytime soon. He is well established, has a history of positive post-closing customer service record and has remained pretty constant in both good and bad markets....and no, I don't work for him :)
0 votes Thank Flag Link Thu Nov 13, 2008
First of all are you working with an agent ? If you are then you should be asking them this question. IF not then you need to use one to assist you with answers to your questions about buying a home.

More than likely the builder at Victory Meadows bought the land quite some time ago at the height of the market. They also developed it when construction costs were at the peak. Home were selling in Victory Meadows for as high as $549k in 2006. They are now attempting to appeal to the lower priced home buyer hence the low $300k selling prices. Incidentally that home is being built in Jamestown for $299k.

American car manufacturers are faced with a similar problem. The Japanese Car manufacturers have been able to build brand new factories in the US and build and sell cars at a profit. Meanwhile the big three are saddled with older antiquated factories, high legacy costs for benefits, etc.

If a builder goes out of business, the land is usually liquidated at a much lower price. Allowing the new owner/ builder to build at a lower price. We saw this happen before in the late 1980's and early 1990's. I'm sure it will be happening again.
0 votes Thank Flag Link Wed Nov 12, 2008
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