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Old 06-07-2017, 11:31 AM
 
18 posts, read 17,292 times
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Can anyone explain, why building costs in Brunswick County seem so expensive, even when compared to spec homes and other homes on the market?

I recently purchased a building lot in a community on the ICW. Lot price was reasonable, and I began searching for someone to build an average 2500 square foot house. Nothing too extravagant, but just a few upgrades in the kitchen, flooring, etc. So far, I have been quoted price ranges from $169 to $230 a square foot, except one builder did bottom out at $140, but it was using the same materials as the $95 homes.

The square footage pricing to me, just seems overly high. Considering most of the spec homes on the market in the region sell for as little as $95 a square foot for a builder grade spec, and most generously appointed spec homes using upgraded materials, only top out a $150-$155 a square foot.

I noticed one such home in a community for sale. Minus the lot cost, the house averaged about $145 a square foot. I asked that builder, how much to build the exact same home on my lot about 10 miles away, they quoted $170 a square foot, PLUS the cost of the options which would have added another $40,000 to the cost. So the house they build and offered for sale (minus the lot cost) for $350,000, they want $465,000 to build on my lot.

I just don't understand, why the huge difference? Why are builders willing to build a house for $145 a square foot, but when asked to do so on a different lot, the price goes up over 25%.

Jim
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Old 06-07-2017, 12:52 PM
 
Location: USA
32 posts, read 49,711 times
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Did you ask the builder why the cost would be 25 % higher? If he's willing to tell you the cost would be higher he should be willing to tell you why.
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Old 06-07-2017, 01:14 PM
 
Location: New Jersey
784 posts, read 1,633,685 times
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I could give you the absolutely correct and absolutely true answer to your question ... but you would neither like the answer nor would you accept it.
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Old 06-07-2017, 01:23 PM
 
Location: USA
32 posts, read 49,711 times
Reputation: 23
Why do 2 words come to mind
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Old 06-07-2017, 01:24 PM
 
Location: New Jersey
784 posts, read 1,633,685 times
Reputation: 337
Naahhh.... they just would not accept the real answer.
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Old 06-07-2017, 01:43 PM
 
6,800 posts, read 4,426,379 times
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WTF? If you can answer the question, answer it. These silly games are dumb and pointless.
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Old 06-07-2017, 02:08 PM
 
Location: New Jersey
784 posts, read 1,633,685 times
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WTF ? Not very nice... but I'll give the correct answer anyway....

The builders, especially in Brunswick County, because of St James and many other plantations which are just booming, are so busy, out of control busy, have so much work they actually / literally cannot handle all the building jobs .... they are actually having difficulty getting enough sub-contractors to do the work they have booked .... it's simply supply and demand like always.... when it's busy prices go up and stay up and they get the prices they want / quote and if you don't like it that's ok with them as there is someone ( many someones ) right behind you to pay it...... how long this lasts is anyone's guess.
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Old 06-07-2017, 02:17 PM
 
6,800 posts, read 4,426,379 times
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Quote:
Originally Posted by Stonecreek67 View Post
WTF ? Not very nice... but I'll give the correct answer anyway....

The builders, especially in Brunswick County, because of St James and many other plantations which are just booming, are so busy, out of control busy, have so much work they actually / literally cannot handle all the building jobs .... they are actually having difficulty getting enough sub-contractors to do the work they have booked .... it's simply supply and demand like always.... when it's busy prices go up and stay up and they get the prices they want / quote and if you don't like it that's ok with them as there is someone ( many someones ) right behind you to pay it...... how long this lasts is anyone's guess.
Thats patently obvious, and I'm not sure why you think someone wouldn't accept it. But it doesn't answer the OP's question, which isn't "why are construction costs so high in general", but is actually more nuanced. He/she is asking why the price is $145/sf on one lot and $170 per sf on another lot 10 miles away?
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Old 06-07-2017, 02:27 PM
 
Location: New Jersey
784 posts, read 1,633,685 times
Reputation: 337
I told you you would not accept it....

I guess there just must be some other convoluted, complicated reason, logical reasoning to be mulled over... but there isn't.... the answer applies to all aspects of the question....

but... well just see my original post, it was also correct.
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Old 06-07-2017, 02:43 PM
 
18 posts, read 17,292 times
Reputation: 42
Quote:
Originally Posted by Stonecreek67 View Post
WTF ? Not very nice... but I'll give the correct answer anyway....

The builders, especially in Brunswick County, because of St James and many other plantations which are just booming, are so busy, out of control busy, have so much work they actually / literally cannot handle all the building jobs .... they are actually having difficulty getting enough sub-contractors to do the work they have booked .... it's simply supply and demand like always.... when it's busy prices go up and stay up and they get the prices they want / quote and if you don't like it that's ok with them as there is someone ( many someones ) right behind you to pay it...... how long this lasts is anyone's guess.
Thank you for the opinion. I understand the basis of supply and demand, and that would seem plausible, if new construction spec houses were also fetching high prices per square foot, and being purchased at a record pace. However, new construction homes in the price range I am considering, $350,000 to $400,000 are not selling that fast, and as I mentioned only top out near $150 PSF, for non-waterfront/non-waterview lots. The one home I mentioned about having built, has been on the market since July of 2016.

I once lived in Loudoun County, Virginia, now that was a booming market. However, I've seen nothing like that in Brunswick County. There, even 2500 square foot builder grade spec homes were fetching $230 PSF, and time on the market averaged less than 30 days.

Specifically, I don't understand why a new home in community A costs 25% less than having one built in Community B. I've asked, and builders just beat around the bush, without a specific answer.
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