Real Total Cost of New Home?

R

_rkp__IHB

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<p>I went to VoC again today to check out how the pricing looked and while checking out some models, my wife and I were trying to calculate the real total cost of buying a new home. With a resale, what you see if what you get but with a new home, its easy to overlook the cost of landscaping, window treatments, etc. For all those that have bought new, what are the typical things one must add after the purchase and what are the costs like? </p>

<p>I know we all will have more negotiating power with the builders but a resale might prove to be a better financial decision. Hence, I am hoping we can analyze new vs. resale to make sure we really get a bargain. </p>
 
It depends on what the "basics" are for the home. When you walk in the model, in the kitchen there is a sheet showing what the upgraded features are, but figure flooring, appliances, cabinets, counters, window treatments, closet organizers, washer/dryer, ceiling fans or ceiling fan pre-wire, and loft or office to bedroom conversions, among others.





You'll need furniture, too.
 
Eva, there are always bean bags





rkp, it's a hard question because it's subjective in nature. The answer depends on what kinda of floor, window treatment, landscaping, etc. . . . you want. It's kinda like buying options for a car.





The way my wife and I look at it is that you're going need add anywhere from $50K to 100K to the "selling price" to get most of the options that you might want. On top that, you have to figure in misc. closing costs (extra $10-30). The price may also be different depending on what you are going to do with the house. Are you going to stay in it for awhile (willing to forego some of the options) or selling it (want to upgrade as to maximize the value).





Landscaping costs can vary greatly depending on what you want to do. We have a friend who lives in Ladera and spent $150K for his yard. According to him, that figure is low compared to his neighbors ($200K and up). Granted, our friend has a pretty big house but he did not do anything crazy with the yard. I don't think you can get out spending less that $50 K for landscaping, even if it's a small yard.
 
Yes, the cost of landscaping can be huge. Unlike the enteriors, you can't just opt for vinyl in the yards. Hahahaha.
 
Keep in mind when spending on landscape that it only adds about 50% of its cost in value. So if you spend $100,000 in landscaping, you only add $50,000 in value to the house. This is why builders don't do it.
 
<p>A good and easy rule of thumb I use for "flipping" a vacant home is at least 50k to 150k. The first step is cleaning what is already there, minor work, new carpet, new fixtures, new paint, some minor repair around the house. The next step requires work in flooring, some yard work, plumbing repair, electrical repair. The last 50k is extensive repair, termite damage, mold damage, structural damage (really dependent), new roof, exterior repair work. For your first step, I think 50k would be a nice 1st step.</p>

<p>BUT really why don't you start a spreadsheet on what you want and keep track of the costs. Be sure to give yourself a generous overrun. </p>

<p>Good luck</p>

<p>-bix</p>
 
<p>Typically developers like to get you excited about the home with the models which have every single conceivable option. If it is in the later phases, ask to walk through a near complete model with minimal additions so you can see what you are really getting. The contrast between the model and what you get can be quite stark and disconcerting between counters, flooring, mouldings, carpeting, window treatments and appliances.</p>

<p>Just for fun, ask the "sales counselor" for the options pricing. Typically, they only have structural options (decks, lofts, walls) and do not have the "design center" options. Where you get worked over is when you go to the design center (depends on the developer as mentioned, Laing puts more in the houses standard, Standard Pacific, for example, has many more options). My wife loves to tell the story of when I came unglued during a design center session when I found out I had to pay an additional $2.00 per sq. ft for "subflooring" since we were putting tile instead of linoleum in the bathrooms. This was on top of the ridiculous price for the tile. She had to drag me back to the chair because I basically said to turn the house over as is and I would have a contractor do the finish work.</p>

<p>So, to answer your question in a roundabout way, I always add 20% of the cost of the house (1.2 mill base house + 160k in options plus 80k in landscaping (assumes grass, front walkways, some stonework, and either built in BBQ or Jacuzzi)). Just my rough math based on what I like in houses.</p>

<p> </p>

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jsboxer -- i'm surprised you went with the tile flooring. I've always heard that the only options that should be purchased from the builder are structural options that would be difficult and costly to do later, like opting for another bedroom instead of a 3rd car garage. I've heard it's best to decline any design center options like flooring, appliances, etc., and instead hire a contractor for 50% less after you close escrow. What irks me is that everything bought at the design center is added to the value of the home for property tax purposes. So if you spend [an already inflated] $4,000 on interior paint, that's an extra $44 a year in property taxes. In reality, you'd never get reassessed for painting the inside of your house (or adding a wine refrigerator or upgrading your stove, etc.). I don't know if this is the builder's fault or if it's required by law, but it is ridiculous.
 
<p>Marty,</p>

<p>Sometimes we deal with financial reality and sometimes we deal with marital harmony. I am happily married for the past 7 years and intend to stay that way. At the end of the day, I'll take the expensive tile over the alternative :).</p>

<p> </p>
 
<p>i guess no one here knows what it's like to be poor. most of the people i know live in houses that are 20-30 years old. they don't have lavish landscaping, upgraded kitchens, or expensive flooring.</p>

<p>thus, i don't think you need anything other than window treatments, washer/dryer, and furniture. and you don't even need landscaping if you buy a new condo.</p>

<p>i see people with million dollar homes in turtle rock still using their tv from the 80's, whereas there are other new homeowners who are furnishing their tiny condo with 50 inch plasma's. are we just too materialistic?</p>

<p>so... if you want to spend 20k, spend 20k. you don't have to spend 100k just because your neighbors are. it's just how you want to be.</p>
 
<p>I see a lot of Honda Civics in multi-million dollar neighborhoods.</p>

<p>OTOH, I see quite a few BMW's in the IAC rental community around the corner. </p>
 
I live in an IAC complex in 92602 and there's been a guy here over a year that drives a 911 Turbo 2-3 years old.



I try to figure out how exactly that works but it's best to let it go. :)
 
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