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March 27, 2016

Are New Starter Homes History? [Bumped]

aalevittowner.jpg
Getting to $160,000 : Making a $200,000 home work as a home builder is junior-high–level arithmetic. Solving for profit—say, 20%—land and building direct costs can not exceed $160,000. Problem is, a 20% margin on a sub-$200,000 house has become frighteningly elusive in the past decade. “The lowest build cost is around a $50 a foot,” says David Goldberg, a home building and building products manufacturers analyst for UBS, New York. “If you do a 2,000-square-foot house, which is what you’d have to do to compete with existing stock, that leaves you with $100,000 of sticks-and-bricks cost. The maximum cost on the land would be $60,000.” - - Builder Online

Posted by gerardvanderleun at March 27, 2016 7:19 PM. This is an entry on the sideblog of American Digest: Check it out.

Your Say

"The catch to all this is that it’s not just one problem."
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Yes there is, and it's the same problem that is corrupting everything else in this country.

Did you know that recently a requirement has been levied that all new homes must have Carbon Monoxide detectors?

Posted by: ghostsniper [TypeKey Profile Page] at March 25, 2016 2:36 PM

"Carbon monoxide detectors?"

We don't want the new emigrants to poison themselves while sleeping in the garage with the new car running for warmth . . . do we.

Posted by: Terry [TypeKey Profile Page] at March 25, 2016 3:32 PM

Up here in the cold white north we use carbon monoxide detectors for all of the various devices people utilize to keep warm and they run about $30 each. We have 4 in our house and 1 out here in my office and another in the workshop. Supposedly CO is oderless and can kill you in your sleep.

In Florida our heat comes from an electric system so there is no chance of CO, so why the CO detector requirement?

Because a gov't employee decided to reward the manufacturer of the CO detectors who then gives some of the profit to the gov't employee.

I've seen hundreds of changes to the building and zoning codes that reflect this sort of thing and raising the costs of new home construction beyond the grasp of many people.

For every $1000 increase in construction costs, 18,000 additional Lee County, Florida residents will no longer qualify for a home loan.

Posted by: ghostsniper [TypeKey Profile Page] at March 25, 2016 7:32 PM

Ah, all smoke detectors now come with CO detection too. Can't have some Miguel dying because his charcoal fired bean cooker offed him and the kids.

You can get around all this stuff if you build the house yourself. Remember however, the legal part when someone else gets hurt. Contractors are on the hook for not following codes. Their insurance won't cover misfeasance.

and all this comes home to roost when you go to sel the house.

Posted by: Vermont Woodchuck [TypeKey Profile Page] at March 26, 2016 8:32 AM

It's not about who builds it, but where it's built.

Our Florida house was built where codes are 2 feet thick. Our house in the woods was built where no codes exist. Last year I had a bad knee and wanted a deck built but couldn't do it myself, so I hired a contractor. He built it as I wanted and codes were never brought up.

Posted by: ghostsniper [TypeKey Profile Page] at March 27, 2016 9:13 AM

It isn't about whether some fool will build it or you do it DIY. The troubles come about when you sell and the people buying check the codes and find the building doesn't meet them.

Or if some one gets hurt falling off you deck, they sue and the lawyer drags the contractor and you into court where upon litigation, they find you didn't build to codes.

Your insurance company won't pay because you didn't fulfill the terms of the contract.

Just for giggles, go ask a lawyer what the outcome of a case like that would be especially if the injured party is a cute six-year-old blond girl is disfigured. Just add that in for amusement.

Everything is fine until...

Posted by: Vermont Woodchuck [TypeKey Profile Page] at March 27, 2016 1:59 PM

Oh dear. The codes are constantly changing, usually multiple times per year. Our FL house was started in Feb and finished in Aug and the codes changed twice in that duration.

The building codes do not govern already built buildings.
It would be very difficult and expensive for a home owner to prove the contractor of the previous owner was in violation of the codes considering a Certificate of Occupany is issued on all new homes before it can be legally occupied.

Lawyers know this and will not take the case you mentioned.

The code inspectors are pretty thorough.
Our house has a pool surrounded by an aluminum enclosure and fiberglass screen to keep bugs and debris out. We also have a 6' high estate fence around the entire property. The closest neighbor is more than 2 miles away. We have no children living with us nor even visiting. Yet the codes required that our screen door handles be at least 5' above the floor AND that we have audible alarms on all 3 sets of sliding glass doors that lead from the house out to the back porch and pool.

Even though there is less than .0001% chance of a child drowning in our pool the gov't rules required us to have more than $5000 worth of safeguards on our house. Maybe the next owner will have some brats and appreciate our efforts.

Oh, that's right, right after we moved in I disconnected the alarms and put the door handles down at 36" above the floor where they're supposed to be. Codes be dammed.

BTW, you can do everything completely right and still get sued in the litigious society we live in. Ask me how I know. Yeah, I won all 3 times but it cost me 10's of thousands to make it go away.

Posted by: ghostsniper [TypeKey Profile Page] at March 27, 2016 6:04 PM

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