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Difference in construction price?

 
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balor123



Joined: 08 Mar 2008
Posts: 1204

PostPosted: Tue Aug 13, 2013 9:15 pm GMT    Post subject: Difference in construction price? Reply with quote

How much do you all think that this new home in Arlington cost to build? Records show that the lot was purchased for $340k and the house is now $700k so did it cost $360k?

Contrast that with this home here in Austin. One less bedroom, 123sf more, no garage door (for design I think). Both are custom but this one seems to have more expensive details. It's listed at $432k with a lot cost of $155k so presumably a construction cost of $277k?

Is there simply a difference in new construction premium or is the construction cost in Boston really about 33% higher? Would I have been able to build the second home on the first lot for $617k?
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admin
Site Admin


Joined: 14 Jul 2005
Posts: 1818
Location: Greater Boston

PostPosted: Tue Aug 13, 2013 9:25 pm GMT    Post subject: Reply with quote

I don't think that Arlington one is actually new construction, even though they lead the listing off stating that it is. Check out the disclosure down much further:

Quote:

foundation,1st floor, & shell is from previous house.

Also note that they are attempting to resell just four months after buying. That seems like a really short time to build a new house, though I don't actually know what a typical time frame would.

Speaking of disclosures on this one, this one lead me to ask WTF when I saw this listing earlier
Quote:

square footage for marketing purposes, buyers do dilengence

What does that mean!?! Does "for marketing purposes" mean they just made it up?

I skipped the open house at that one.

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admin
Site Admin


Joined: 14 Jul 2005
Posts: 1818
Location: Greater Boston

PostPosted: Wed Aug 14, 2013 4:52 pm GMT    Post subject: Reply with quote

Here are some other gems that I just noticed from that listing:

Quote:

Foundation Size: 999
Taxes: $999
Tax Year: 999
Assessments: $999
Page: 999
Book: 999

I missed those before because I stopped reading once I read the disclosures.

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balor123



Joined: 08 Mar 2008
Posts: 1204

PostPosted: Thu Aug 15, 2013 1:58 am GMT    Post subject: Reply with quote

Wow, that's sneaky! I saw the year built as 2013 but I think you're right. I've noticed that a few other times in MA too, in cases where the house looks old but they're claiming that it's new. So how much do you think this home would have cost brand new then? The discrepancy seems even larger then!

For comparison, I looked at homewyse. To install hardwood here (78759) on 200sf would cost $1593 at the low end. In Waltham, believe it or not, the price is only $1525. 100sf of Quartz is $6503 vs $6448. Those are both dominated by material costs so maybe not surprising. Painting 200sf is $535 vs $496. Next to trades. Re-wiring 10 connections in a home is $1193 vs $1087. So it seems that Waltham is actually cheaper!

Changing the zip code to 02481 in Wellesley changes the picture a bit. Re-wiring is $1307. Painting is $535. Quartz is $6503. So Wellesley is comparable to Austin.

Land in Boston is only a bit more expensive and even cheaper in some places. Why, then, are new homes so much more expensive there? Homewyse doesn't track cost for permits, delays, bad weather, taxes, etc. Are those things really accounting for the difference? A home that you'd expect to cost $700k based on these values seems to cost $1mil - $1.2mil and I'm totally at a loss at where the difference is coming from. Maybe john p could chime in Smile
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Elrond



Joined: 27 Feb 2013
Posts: 41
Location: Boston, MA

PostPosted: Mon Aug 19, 2013 7:10 pm GMT    Post subject: Reply with quote

Labor costs across the board here in Boston are quite a bit higher than in Austin, which is likely the primary cost in home building once you've got the lot.
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balor123



Joined: 08 Mar 2008
Posts: 1204

PostPosted: Tue Aug 20, 2013 9:35 pm GMT    Post subject: Reply with quote

That's what I would have thought but the homewyse numbers don't recognize it. Are they wrong? Do you have any data to back up those labor costs? Not cost of living but cost of labor.
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PostPosted: Thu Dec 19, 2013 4:01 am GMT    Post subject: Reply with quote

I would like to thank you for the efforts you have made in writing this article. I am hoping the same best work from you in the future as well.
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AlanMerle



Joined: 06 Jan 2016
Posts: 1

PostPosted: Wed Jan 06, 2016 11:20 am GMT    Post subject: Reply with quote

balor123 wrote:
Wow, that's sneaky! I saw the year built as 2013 but I think you're right. I've noticed that a few other times in MA too, in cases where the house looks old but they're claiming that it's new. So how much do you think this home would have cost brand new then? The discrepancy seems even larger then!

For comparison, I looked at homewyse. To install hardwood here (78759) on 200sf would cost $1593 at the low end. In Waltham, believe it or not, the price is only $1525. 100sf of Quartz is $6503 vs $6448. Those are both dominated by material costs so maybe not surprising. Painting 200sf is $535 vs $496. Next to trades. Re-wiring 10 connections in a home is $1193 vs $1087. So it seems that Waltham is actually cheaper!

Changing the zip code to 02481 in Wellesley changes the picture a bit. Re-wiring is $1307. Painting is $535. Quartz is $6503. So Wellesley is comparable to Austin.

Land in Boston is only a bit more expensive and even cheaper in some places. Why, then, are new homes so much more expensive there? Homewyse doesn't track cost for permits, delays, bad weather, taxes, etc. Are those things really accounting for the difference? A home that you'd expect to cost $700k based on these values seems to cost $1mil - $1.2mil and I'm totally at a loss at where the difference is coming from. Maybe john p could chime in Smile



Thanks for the information bablor
I am planning to buy an apartment in boston this year..
Hope this information works..
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CraigRosenbaum



Joined: 13 Sep 2018
Posts: 1

PostPosted: Thu Sep 13, 2018 8:26 pm GMT    Post subject: Reply with quote

Work costs no matter how you look at it here in Boston are significantly higher than in Austin, which is likely the essential cost in home building once you have the parcel.
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