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House Building question
Posted on 12/3/25 at 3:16 pm
Posted on 12/3/25 at 3:16 pm
I have a quote to build a new construction house for 250k. All the homes around it on zillow are going for 150-200. Why are new construction houses so much more than existing homes?
14
Posted on 12/3/25 at 3:20 pm to FIREAWAY
Lots of variables can be at play.
Are those existing homes comparable in size, material quality, and amenities as your proposed new build?
How old are those houses and have they been recently renovated? Depreciation is a factor if the interior is dated, old roof, old HVAC, etc....or if the house isn't in perfect condition
Maybe its just the neighborhood or school district. A few miles doesn't make any difference on what a builder is going to charge....but it could make a huge difference on resale value of existing homes.
Are those existing homes comparable in size, material quality, and amenities as your proposed new build?
How old are those houses and have they been recently renovated? Depreciation is a factor if the interior is dated, old roof, old HVAC, etc....or if the house isn't in perfect condition
Maybe its just the neighborhood or school district. A few miles doesn't make any difference on what a builder is going to charge....but it could make a huge difference on resale value of existing homes.
This post was edited on 12/3/25 at 3:23 pm
Posted on 12/3/25 at 3:21 pm to FIREAWAY
quote:
Why are new construction houses so much more than existing homes?
Materials, labor, permits, etc....
Posted on 12/3/25 at 3:23 pm to Tiger Prawn
quote:
How old are those houses and have they been recently renovated? Depreciation is a factor is the interior is dated, old roof, old HVAC, etc
Many of the neighborhood houses are older and need updating.
Posted on 12/3/25 at 3:24 pm to FIREAWAY
Unless going substantially smaller than your previous home or able to do a shite ton of finish work yourself it’s almost always cheaper to buy an existing home.
Posted on 12/3/25 at 3:27 pm to FIREAWAY
Going for 150-200? Is this a post from 2019?
Posted on 12/3/25 at 3:28 pm to FIREAWAY
quote:
Many of the neighborhood houses are older and need updating.
There's your answer....or at least a big part of it.
By the time you spend $150-200K on the house and then pay for renovations, you're probably not going to be too far off from your $250K new build.
I'd be willing to pay more for a brand new build than a renovated older house. New construction warranty, cheaper homeowners insurance, and you know EVERYTHING is completely new as opposed to renovated houses where it might just be the cosmetic stuff you see that's brand new but have all the decades old wiring and plumbing in the walls.
Posted on 12/3/25 at 3:53 pm to FIREAWAY
quote:
Why are new construction houses so much more than existing homes?
Tariffs are a large part of it. I've worked in the home building industry all my life and am also designing a new build for myself at the moment on my existing property. One of the biggest culprits is the tariffs on steel and other metal products. Nails, screws, flashing, metal roofs, metal window and door components, hangers, hurricane ties, rebar and on and on. Nails and screws have risen over 50% in the past year in my area. Depending on your location, availability of lumber from domestic mills varies greatly. In some places you may only have access to 70% Foreign and 30% domestic or it could be vice-versa. Wood flooring and cabinetry woods are almost always imported as are a high percentage of tile, brick and stone. Nearly all appliances and fixtures also imported. Also keep in mind, many building material products are commodities and even for what is available domestically without tariffs...those products adjust their market pricing to match competition. New housing construction is taking an absolute beating right now!
Posted on 12/3/25 at 4:01 pm to FIREAWAY
Homes will depreciate in neighborhoods that are still actively building.
If you can have a new home for $250k - what are you willing to pay for a used one?
If you can have a new home for $250k - what are you willing to pay for a used one?
Posted on 12/3/25 at 4:03 pm to FIREAWAY
Custom build costs more than big builder build (dr Horton, dsld, etc)
Who is your quote from, a GC?
Who is your quote from, a GC?
Posted on 12/3/25 at 4:07 pm to FIREAWAY
quote:
I have a quote to build a new construction house for 250k.
Are you building a house for ants? Is it 1000 sqft?
Posted on 12/3/25 at 4:09 pm to IamPatman
In some states, property taxes take in the price of a house and then give a discount for older houses. Much older houses get tens of percents off (It's why we kept the 200 year old log cabin a part of our renovation of younger additions.)
Talk to the folks at your assessors office as to what to look for to get breaks in taxes. That would include acreage you'd need for greenbelt status.
Talk to the folks at your assessors office as to what to look for to get breaks in taxes. That would include acreage you'd need for greenbelt status.
Posted on 12/3/25 at 4:14 pm to Tiger Prawn
quote:
Lots of variables can be at play.
Posted on 12/3/25 at 4:24 pm to FIREAWAY
Its like asking I am buying some sort of new car that is of some sort of size from some manufacturer, why does it cost more than other cars on the road.
In other words, a ton more information is needed before even beginning to explain this.
In other words, a ton more information is needed before even beginning to explain this.
Posted on 12/3/25 at 5:38 pm to FIREAWAY
Sorry ..should have paid cash homie.
Posted on 12/3/25 at 9:14 pm to GatorPA84
250k for real. My cabinets, doors and windows are 250.
You building on Plank Rd?
You building on Plank Rd?
Posted on 12/3/25 at 9:19 pm to FIREAWAY
You serious Clark?
Posted on 12/3/25 at 9:21 pm to ColdDuck
No they arent.
Unless you have a 10.000 sw ft mansion with custom everything
Unless you have a 10.000 sw ft mansion with custom everything
Posted on 12/3/25 at 9:22 pm to FIREAWAY
quote:
House Building question
Don’t do it
Posted on 12/4/25 at 12:17 am to bayoudude
quote:
it’s almost always cheaper to buy an existing home.
Building always seems like a nightmare. Just buy a house.
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