M O'brien, Home Buyer in Gainesville, FL

why are new to be built and also a few spec homes less money then an 3to 5 yr old?

Asked by M O'brien, Gainesville, FL Mon Jun 16, 2008

home both having landscaping and appliances in them.

Help the community by answering this question:


Sometimes it's the price of the dirt. Builders and Developers can play with the lot prices depending on their development costs and what they paid. Many Builders can offer lower prices. Construction materials, however, are rising.
Jim Soda
Sarasota - Lakewood Ranch
Web Reference: http://www.jimsoda.com
0 votes Thank Flag Link Tue Jun 17, 2008
One other point to check out: are you comparing like-for like? Does the spec home or to-be-built price include the same upgrades as the 3 to 5 year old property? For example, upgraded floor covering, cabinets and counter tops can add a lot of dollars to a house cost. Also, check out the roof: one home builder in the Central Florida market we work in has achieved some of cost savings by changing to shingles instead of barrel tiles in one community.
0 votes Thank Flag Link Tue Jun 17, 2008
I agree with both Jeff and Bill, I will add though, the builders have much more play in a sales number then would a normal reseller. If somebody bought a house from a builder only 2 months ago, and paid $200k, the builder can still sell that same exact house right next door, for $180k. They will still be making money, just not as much. They may have also levereged the pricing down with their subs, who are now doing the work 10% or 20% cheaper, as work is harder to come by. As far as I am concerned, more then 90% of the time, it is better to buy from a builder, instead of a resale, but it all depends. Remember, the builders pockets are deeper than a reseller, and they have no personal attachment to the homes, only financial. So they are usually more "Market Correct"
0 votes Thank Flag Link Mon Jun 16, 2008
Since the 3 to 5 year old home is a resale that was purchased during the "Peak Market" the owners of these homes need to place a higher asking price to not lose money. Many of the newer homes are being built with cost saving measures implemented in an effort to keep prices down and profit margins are being narrowed.

The "Eckler Team"
0 votes Thank Flag Link Mon Jun 16, 2008
New homes are often cheaper as during the high point in the market buyers were paying higher prices. Now when they sell they are trying to get their money back but cannot. One of the big reasons there are so many foreclosures today.
0 votes Thank Flag Link Mon Jun 16, 2008
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