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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
It's pretty simple. I worked as a contractor for 8 years in a very different industry, but I can sum it up for you.
I'm a Contractor. I have a limited crew, and everyone is so busy I can't find quality men easily. I'm working in a booming subdivision. They're throwing me jobs left and right, and since they are a big company, they pay me reliably.
You offer me a job. You're one guy. After your job, what do you have for me to do? I'm out of work after your house is built. You're also one man, and I have no idea what your credit story is. Are you going to pay me quickly or is every invoice going to be a fight?
Why would I pull valuable men off of a customer that I know pays me on time, constantly feeds me more work and keeps all my good men working in a tight area where I can supervise them easily to build a single house for a guy I don't know at much higher risk?
I'm only going to do it if you pay me a lot more margin.
That story changes in a lousy housing market, but we aren't in one now. If you want a better deal, you'll probably have to have your home built by much smaller companies that lack the bonding capacity to work for the big players. If you don't want your home built by Two-Guys-And-A-Van Contracting, you may either have to wait out the market or just pay the higher costs.
It's pretty simple. I worked as a contractor for 8 years in a very different industry, but I can sum it up for you.
I'm a Contractor. I have a limited crew, and everyone is so busy I can't find quality men easily. I'm working in a booming subdivision. They're throwing me jobs left and right, and since they are a big company, they pay me reliably.
You offer me a job. You're one guy. After your job, what do you have for me to do? I'm out of work after your house is built. You're also one man, and I have no idea what your credit story is. Are you going to pay me quickly or is every invoice going to be a fight?
Why would I pull valuable men off of a customer that I know pays me on time, constantly feeds me more work and keeps all my good men working in a tight area where I can supervise them easily to build a single house for a guy I don't know at much higher risk?
I'm only going to do it if you pay me a lot more margin.
That story changes in a lousy housing market, but we aren't in one now. If you want a better deal, you'll probably have to have your home built by much smaller companies that lack the bonding capacity to work for the big players. If you don't want your home built by Two-Guys-And-A-Van Contracting, you may either have to wait out the market or just pay the higher costs.
I don't think thats the situation here. The OP is referring to a contractor who strictly builds for individuals, not for the developer of a subdivision.
Stonecreeks answer is the most logical and realistic in todays Brunswick county Real Estate market. Hottest market on the East Coast and tremendous shortage of craftsmen. All about supply and demand and builders can get as much as people are willing to pay. Sorry about your predicament.
How so? Demand is high all over Brunswick County, so whats the difference between 2 sites 10 miles apart? His answer explains why building costs in the county are higher now than a few years ago, but not why a cost difference exists between 2 sites within the county.
Thanks to everyone for their opinion. In this market, it certainly is less costly to buy, than build, which strikes me odd, in comparison where I currently live in Northern Virginia. So the plan is to buy something new already built, and keep my building lot in the ICW community to use the amenities. Then, perhaps sell later on when/if the market achieves better health.
J
I had to make a comment on this. Knowing NVA, Southern Maryland, Montgomery Co., etc...
That is an artificial economy based on taxpayer money.
There is no justification for the outrageous price of homes, number of contractors, disposable income,
...on and on.
An economy based on private enterprise will not boom like an artificial one based on
taxpayer money.
I had to make a comment on this. Knowing NVA, Southern Maryland, Montgomery Co., etc...
That is an artificial economy based on taxpayer money.
There is no justification for the outrageous price of homes, number of contractors, disposable income,
...on and on.
An economy based on private enterprise will not boom like an artificial one based on
taxpayer money.
What about Silicon Valley?
And what does the DC area have to do with Brunswick County, NC?
I don't know if this was answered or not... but perhaps the reason is that the builder built a spec house that he needs to sell and maybe do a leaseback on? The one that is already up is the done and now they want it sold. Their lot, their house. Custom homes done to your specifications are just that. Custom - changes are made to the plans (even mid-build) and that all cost money. They probably add that into the price too. I could have bought a beautiful house for about $100,000 less than the one I wound up building but I had already bought the lot and did all the preliminary work. Hope this helps.
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Anywhere around DC
