So the cost of basement thread got we wondering. How is a new build cost effective? Considering I had to insure my house for $130/sq finished (which equals $347,000) yet I just had it appraised and sold for $237,200. It seems to me a person could easily be at least $50,000 – $100,000 under water the second a person takes possession of the new build.
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So the cost of basement thread got we wondering. How is a new build cost effective? Considering I had to insure my house for $130/sq finished (which equals $347,000) yet I just had it appraised and sold for $237,200. It seems to me a person could easily be at least $50,000 – $100,000 under water the second a person takes possession of the new build.
Not sure what insurance costs have to do with building costs. I built my home in 2010,small house , just over 1000 square ft and my insurance is just over $300.00 a year,good deal I think. As far as being in the red or the black when building,I am a carpenter and did the bulk of the work myself,minus the usual subs.When I closed the construction loan I had $60,000.00 in equity, day one! So I guess that’s how its cost effective,sweat equity.
If I get the question, it was once explained to me… if your house burns half down, to rebuild it, tearing it down, clean up and site rehab and all cost more than just building it from scratch. Hence why the value of it all is insured higher than “just” the build cost.
One big factor is location. This is assuming you are building the exact same house in both places.
FDR
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If I get the question, it was once explained to me… if your house burns half down, to rebuild it, tearing it down, clean up and site rehab and all cost more than just building it from scratch. Hence why the value of it all is insured higher than “just” the build cost.
that’s right 
BCK, the same here. If a guy can swing a hammer he’ll save a bunch. We had an attic fire because of the old wiring. The fire dept. came and pulled down the ceilings in three rooms. walls got wet etc. To make a long story short we put on another 120 sq. ft. and rebuilt everything from the floor up. Studs, rafters, siding, insulation etc. WE owe a little on the mortgage but not much. If you have a friend or can do it yourself you’ll save a bundle. Were going to come out very good on equity and then build a new place from the basement up, probably down in southern Iowa, even going solar and doing that myself. Do it yourself if you can by reading up or hire a carpenter to come and look at your work to see how your doing. There probably enough on U-Tube to do it yourself, its not that hard.
It is part of the insurance racket. Just like how the rates are skyrocketing the last couple of years the replacement cost went from about 60k to 150k over what I paid for the house.
Huge adjustments have been made in supply and demand. Back in 1999, every manufacture had warehouses filled with back stock. Anything you wanted, in every color, style, design,….was all available in mass quantities. Now, much smaller runs and less selection for “in stock” items. These much lower production runs have made for some huge increases compared to what we had once paid.
Also, the housing market got a well long over-due adjustment. There is a premium cost to having new. If you think about just the house (no land, landscaping) its a lot like buying a used car. Roof only has so many years left, water heater, furnace, plumbing fixtures, paint, flooring, and anything else that can deteriorate will all bring added costs to fix or replace. A house at 10-15 years old will surely see a number of these fail. So if buying a house at 13 years old with nearly half the life of the roof left, and other potential problems worth as much as new??? Property only appreciates because someone is willing to pay more based on wants with disregard to actual value.
New banking regulations and appraisal practices have really brought more balance to the market. I don’t always agree with them, since I do custom design build. But the fact is the budget for a house with a certain level of amenities needs to match the area/location of the build. That is one of the reasons why we are still seeing some of the home values so out of line. Not speaking specific to your home, just some here locally that I have been involved with. I’m working today at a home that is in a neighborhood of 230-280K homes. This couple is finishing a 85K lower level. No exposure or egress windows. A larger home that is built better with nicer amenities just sold across the street with a basic finished lower level for 230’s. Kind of blows the ability to draw value comps with situations like that.
Naw, you guys are not quite getting it (except Randy 
). I just sold my 1999 home for $87.85/sq. according to my contractor friends they would quote my exact same home out at $120-$130/sq. That doesn’t even include the lot and utilities.
Sure doing a lot if the work yourselves saves a ton of cash and makes the numbers work. However to hire a contractor expecting to not lift a finger and move into a completely finished new home seems like a financially loosing proposition.
Buying into an over inflated bubble isn’t going to make you any equity, maybe lots of comfort though.
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Considering I had to insure my house for $130/sq finished (which equals $347,000)
So your saying you live in a $45,110,000 house ? 
Who cares about costs then ??? 
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Considering I had to insure my house for $130/sq finished (which equals $347,000)
So your saying you live in a $45,110,000 house ?
WHAT?
Well if you are you saying your insurance premium is $347,000 ???
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Well if you are you saying your insurance premium is $347,000 ???
You read way to much into things (or try to be a smart azz to much). OK, my premium was $1480/year and that covered a replacement cost of $130/sq for a 2700 sq/ft home which equals a replacement value of $347,000.
I am what I am 
Just passing the time… sometimes I think people ask questions, that they already know the answer to. Why ??? I don’t know… Another of life’s mysteries I guess
Right now, Building doesnt make sense unless you plan to live there a long time. There’s too much supply in existing homes and people that want to get out of them, drives the price down.
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I am what I am
Touche’
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