Market Conditions in 79934>Question Details

Fumanhue, Home Buyer in 79934

How do I find out what the cost per square foot should be for a new home?

Asked by Fumanhue, 79934 Tue May 26, 2009

I am looking to buy a new house but the average price per square foot according to trulia is about 50% less than what most, if not all, new home builders are asking for on their homes.

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Answers

6
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.
0 votes Thank Flag Link Fri Dec 4, 2009
If Trulia suggests that the price per sq ft is 50% less than what builders are asking for, they need to provide you with the areas and builders they researched to back up that statement. What my fellow agent, Jose Garza responded is the truth in purchasing anywhere; During the buying process, in Texas, the mortgage lender requires an appraiser to evaluate the property. From that report, you will know the true sq footage of the property you are buying and the value per dollar. You have lots of homes and different builders to select from in the 79934 zip area; I invite you to visit: http://associates.era.com/maricelaandrade for builders homes in the area.
0 votes Thank Flag Link Wed Aug 5, 2009
The answer depends on the region you will build in and the quality and type of materials used.
and Mike is right...you get what you pay for.

This link may help.
http://architecture.about.com/od/buildingcosts/Building_Cost…
Web Reference: http://www.321advantage.com
0 votes Thank Flag Link Tue Jun 2, 2009
You always get what you pay for. In florida you can build for under $50/foot, or as high as $500/Ft. for luxury custom homes
0 votes Thank Flag Link Tue May 26, 2009
There are no standards on new homes sales prices. You have to consider tens of different elements included or, excluded in a new home. One of the most important is the cost of land, which people tend to ignore. Building materials, size of home, upgrades... etc. In real estate deals, there's a non mandatory principle that rules as the most practical: The real value of a property is what a buyer is willing to pay, and a seller willing to accept.
My advice, hire a REALTOR® and save yourself the brainstorm.
0 votes Thank Flag Link Tue May 26, 2009
When comparing new home construction to resale homes it is often difficult to manage an apples to apples comparison since the builder can offer additional incentives here in California. They may contribute up to 6% for closing costs & buydown of interest rates. The warranties the builder provides are from 1 year (builder warranty) to a 10 year structural warranty. All of these intangibles have weight when assessing the value per square foot cost. Really it comes down to the closed comparables and the value you may give to a new home vs resale. This is always a great negotiating tool when working with a builder.
0 votes Thank Flag Link Tue May 26, 2009
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