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Market Conditions in 79934 : Real Estate Advice

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Fri Dec 4, 2009
Yvonne A Russell answered:
I'd start with asking truila how they computed such a deviation from what you stated "most builders are asking for". Many builders use a demand function equation that factors in many independent variables to determine what homes to build and how much to charge. Some of these variables include cost/quality of materials, features in the home, goverment regulations, city codes, consumer expectations, economic variables, etc.. From that equations they know and can forecast to a degree of certainty what will happen if they change prices. Of course, there are some builders that don't use calculus or economics to determine prices but they generally don't stay in business for long. ... more
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