Pricing comparison on homes - here and where you moved from (Cookeville: RV park, real estate)

[mbmouse]

Originally Posted by somewheresouth

There are two main factors.

1) The cost of land. Assume the cost to build were exactly the same. Say 100K. In TN you buy a lot for 35K + 100K= 135K. In FL you buy the lot for 85K + 100K= 185K.

.

I do agree with your second point. As to the first, why should a piece of build-able sand in FL cost so much more than a piece of Clay in TN cost?
I do know this will never change and there are valid reasons for some things and seeing as I am "in the bizz" I am very familiar with home costs, construction costs and such. I do know the reason for water front being more than in land and what have you. But at the very base of it, I just don't get the cost differences if you are comparing apples to apples when it comes to land and wood, Know what I mean?

[somewheresouth]

Simple supply and demand. FL has been desirable for many years. The demand has increased and the supply in areas desirable to live has decreased. People are willing to pay more and more to make sure they get it and the other guy doesn't. This drives price up.

Also the cost of wood could be explained like this. These numbers are fictitious, but convey the point.

In TN, trucker makes $500 to move load of lumber from mill to distributor, distributor sells lumber to Home Depot for $1 per 2X4. Home depot pays workers $9 hr to work there. Contractor buys 2X4 for $2. Charges the homeowner $2.25 for the 2x4.

In FL, trucker makes $700 to move load of lumber from mill to distributor, distributor sells lumber to Home Depot for $1.40 per 2X4. Home depot pays workers $12 hr (higher wages due to higher cost of living)to work there. Contractor buys 2X4 for $2.90. Charges the homeowner $3.20 for the 2x4.

Now figure there are 1000 2x4's in the home. Just the 2x4's cost $2,250 in TN and $3,200 in FL. Think about concrete, fuel, plywood, shingles, wire, pipe, etc. It adds up to significantly higher material costs.

[mbmouse]

Yea, you are right. But I still don't agree with it LOL! It just seems wrong for the world to work that way. Guess I am just in a mood today.

[hiknapster]

Right. And you have to consider the salary you receive. You'll make a lot more in Conn., than you will in Tennessee.

But that's also what's wrong with Florida home prices. They didn't support the economy or pay. That's why it's crashing, now, along with other factors such as "magical mortgages."

[39CHEVY]

I was told that TN does a pretty good job of keeping track of contractors as far as them having correct insurance and penalty's for hiring illegals etc. (I hope this is true). Of course it is the right way to do things but it does make it more expensive. You wouldnt believe how much fancy stone/brick masonry
you can put on your house in TX compared to TN - labor cost driven for sure.

[yarddawg]

Originally Posted by 39CHEVY

I was told that TN does a pretty good job of keeping track of contractors as far as them having correct insurance and penalty's for hiring illegals etc. (I hope this is true). Of course it is the right way to do things but it does make it more expensive. You wouldnt believe how much fancy stone/brick masonry
you can put on your house in TX compared to TN - labor cost driven for sure.

This might be true in areas with codes inspections but once you hit rural Tennessee you'll find you're in the land of the unlicensed contractor where insurance is rare and subs are mostly paid in cash without a lot of questions being asked. There are a few who try to do it right but most of the contractors and subs I worked with over the years only had insurance when they were working on government projects which required it. And they complained about having to have it then.

[Exrvi]

Thought you might be interested in this -

We just got home from a vacation in Costa Rica. I met a doctor from NJ who was getting ready to build a home in one of the gated communities on the Pacific Coast. He told me he was locked in at $25/sq foot to build a 5,000 top of the line (granite, stainless appliances, etc) home. I couldn't believe it, but talked to some other people who told me that it was reasonable - although prices are rising to about $30- $35 over the next year or two as more and more people (particularly Americans) are moving to CR.

Lovely place to visit, but I don't think I want to leave my relatively new home in lovely East Tennessee to move to the third world!

Jeff

[SuzieQFL]

Originally Posted by Exrvi

Thought you might be interested in this -

We just got home from a vacation in Costa Rica. I met a doctor from NJ who was getting ready to build a home in one of the gated communities on the Pacific Coast. He told me he was locked in at $25/sq foot to build a 5,000 top of the line (granite, stainless appliances, etc) home. I couldn't believe it, but talked to some other people who told me that it was reasonable - although prices are rising to about $30- $35 over the next year or two as more and more people (particularly Americans) are moving to CR.

Lovely place to visit, but I don't think I want to leave my relatively new home in lovely East Tennessee to move to the third world!

Jeff

True. I've been to Costa Rica, and most everyone (especially the Americans) have maids, and maid quarters in their homes and apartments. You can get a lot there compared to what we pay. HOWEVER, the schools have iron fences around them with barbed wire at the top. Not to keep the kids in, but to keep bad people out. Lots of houses also have iron fences around them, especially the garage area. People don't stop at stop signs at night, and go slowly thru red lights because of fear of carjacking. We asked some locals why, and they said criminals are not made to pay for their crimes. They get off with a slap on the wrist, so crime there is rampant and abundant. I think I'll stay here in the good ol' US of A too

[mrs1885]

Originally Posted by nitneylion

Are you telling us that you can buy a 2700 sq ft house with 5br and 3.5 baths on 5 acres with a waterview for $90000?

5 bedroom, 2 bath, 2 story brick ranch on 7.25 acres with mountain views for $90k. yep.

[gemkeeper]

Originally Posted by mbmouse

I do agree with your second point. As to the first, why should a piece of build-able sand in FL cost so much more than a piece of Clay in TN cost?
I do know this will never change and there are valid reasons for some things and seeing as I am "in the bizz" I am very familiar with home costs, construction costs and such. I do know the reason for water front being more than in land and what have you. But at the very base of it, I just don't get the cost differences if you are comparing apples to apples when it comes to land and wood, Know what I mean?

If you have 6000 people all clamoring for a piece of land 80'x120' in West Palm Beach, FL and 20 people seeking 5 acres in Crossville, TN, who do you think is going to pay the most?

The FL land will go for well over $100,000 for a postage stamp piece of land and the TN beauty will fetch maybe $45 or $50,000 just because the competition for land is so vastly different in the two areas. The quality of the land has very little to do with it. It all hinges on the demand - at whatever cost in some places.