Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Mish's Global Economic Trend Analysis -- Ignore unavailable to you. Want to Upgrade?

To: valueminded who wrote (52984)	7/1/2006 10:29:12 PM
From: Think4Yourself	Read Replies (2) \| Respond to of 116555

You can't even get just the granite countertops for $35/ft^2, even without the installation! I have all the other features (and many more) at a cost of about $35-$40/ft^2 but I designed AND built my house myself. No subs at all except for some roofing 29 feet off the ground (I'm a bit clumsy and didn't care for the idea of one slip and you're dead). There is absolutely no way a builder could do it without major code violations, even with mexican laborers. Funny thing is, the lumber itself isn't the major cost most people think it is. It's actually a fairly small part of the total cost, and I spent under $30K on lumber that is well above code. Over a third of this was for 36' L/480 engineered joists and 36' unsupported span roof trusses. Floor coverings, wallboard, trim moldings, windows, and finishing the kitchen and bathrooms were the major costs, followed by final siding and roofing materials. Costs start going up REAL fast as you get near the end! It's mind boggling how much floor cove molding is in a house.

To: valueminded who wrote (52984)	7/2/2006 11:29:50 AM
From: John Vosilla	Respond to of 116555

Exactly my point. If they are getting these homes out the door at $50 psf total including marketing, raw land, land development, common areas, other soft costs ect it seems they are still closer to $35-40 psf for the improvements on McMansion sized homes in order to survive. Not the highest quality you might be putting in your home but pretty standard for a new home of today. The only explanation had to be discounting on suppliers and economy of scale sort of like Walmart has been doing to the little retailer for years and hope you can discuss specifics with Elroy. To the extent this might be true the pressure on recent homeowners, speculators and subcontractors in fast growing suburbs of bubble markets this coming downturn would be much greater than I ever thought given how far the national builders can come down in price in order to move excess inventory that seems to have no end in sight for several quarters, if not years, to come..

To: valueminded who wrote (52984)	7/2/2006 4:33:11 PM
From: Elroy Jetson	Read Replies (4) \| Respond to of 116555

Pardee can build homes for something like $45.43 per square foot, which is dramatically less than small builders charge to build a home. Top line models cost $58.70 per square foot. This means a 2,000 square foot home in San Diego costs $117.4k and sells for as much as $1.2 million. The balance of the sales price is 50% land and development cost, and 50% profit. Message 22475952 Message 22476343 Californian's are accustomed to prices exceeding $150 per square foot as normal, while some have been quoted prices as high as $300. This leads them to imagine that a 2,000 square foot home costs something like $600k. Building your home for $67 per square foot is a very good showing for a one-off construction, depending on the construction quality. I'm not clear where you got your $35 per square foot figure from. Perhaps you simply made a math error. .