Round Rock versus Leander--Crazy Price Difference! (Austin, Howe: appliances, new home, neighborhoods)

[sharondacoop]

So, my hubby and I have found a home (to build) that we like in a new subdivision in Round Rock west. However, our best friends just found the same exact home being built in Leander for $30K less!! What's the deal? I mean, we totally get that the price of land goes down as you get farther from the heart of Austin, but can the SAME EXACT home cost that much less? They will be getting a much larger lot for their home, but the features inside the home seem to be exactly the same (minus the type of appliances and the height of the cabinets). Does anyone know why things are so much cheaper in Leander? Does it have to do with the schools? Traffic patterns? Is there something we don't know about Leander?

Thanks!

[McDavis]

New home prices are generally higher for neighborhoods closer to Austin proper or neighborhoods considered to be in sought-after locations like the lake.

[capcat]

wrt schools, I prefer Leander. They don't seem to have as much hype as other districts but, from what I've seen, they are quietly doing impressive work.

Maybe the price difference is due to traffic patterns, shopping, jobs. Or, the marketing of a community. I know I hear a lot more about Round Rock in mainstream news.

[shankaupas]

As Round Rock grows and becomes more desirable, the prices are starting to rise.

[centralaustinite]

Clearly the price difference reflects the greater land value in RR. The difference is in the lot price, not the structure price. RR is becoming completely built out, in other words, less empty land around it. This means that land values will start to rise (great for appreciation). The house in Leander is cheaper because land is cheaper. The value of the Leander house will not appreciate until the value of the land rise which could take a very long time, since there is so much available land for more construction.

[joejitsu]

Round Rock is closer to Austin and nicer than Leander, hence more expensive. Stay out of Pville I hate that place.

[verybadgnome]

It's possible to live and work in Round Rock, e.g. Dell, whereas it is virtually impossible to do the same in Leander. Factor in the time and transportation costs saved plus probably better home appreciation in RR and its pretty logical that there is a premium. And that doesn't take into account that RR is on the national radar as a safe place, closer to Austin, has its own baseball team/stadium etc.

[Vector28]

Forbes magazines listed Austin/Round Rock as the 10th most overpriced area in the US last week. I don't know how credible their ratings are, but, just to be on the safe side (or move closer to it) I would make sure the builder is giving you the lowest price by going over every aspect of his pricing. The difference is likely to be the lot. If so, you're done, not much you can do with that unless you can get the developer to come off of the lot price. If it's not mostly in the lot, you need to examine the rest of his pricing and "allowances" to find the difference.

[hound 109]

Originally Posted by sharondacoop

So, my hubby and I have found a home (to build) that we like in a new subdivision in Round Rock west. However, our best friends just found the same exact home being built in Leander for $30K less!! What's the deal? I mean, we totally get that the price of land goes down as you get farther from the heart of Austin, but can the SAME EXACT home cost that much less? They will be getting a much larger lot for their home, but the features inside the home seem to be exactly the same (minus the type of appliances and the height of the cabinets). Does anyone know why things are so much cheaper in Leander? Does it have to do with the schools? Traffic patterns? Is there something we don't know about Leander?

Thanks!

Which schools (not district) do each of these homes flow into.

This will let us know not only of how the schools might affect the price....but also where exactly these two places are located.

(note school quality.....& home prices, can fluctuate quite a bit within the SAME district.)

[austin-steve]

Originally Posted by centralaustinite

Clearly the price difference reflects the greater land value in RR. The difference is in the lot price, not the structure price. RR is becoming completely built out, in other words, less empty land around it. This means that land values will start to rise (great for appreciation). The house in Leander is cheaper because land is cheaper. The value of the Leander house will not appreciate until the value of the land rise which could take a very long time, since there is so much available land for more construction.

I agree with this. It's the land value, which is determined by location and supply.

The same 10 year old resale home in Leander costs $30K - $50K less than in SW Austin, and $20K - $30K less than in RRW. Same builders, same homes. It's all based on location, supply and demand.

Steve