Eliz Rhodes: Average Sammimish new construction $1.2M ????

[Jay]

Check out this snippit from the Seattle Times Home Forum Column by Elizabeth Rhodes:

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Q: I'm interested in finding a source for information on the breakdown percentages that go into building a home in the city of Sammamish — primarily raw-land costs, land improvements, construction costs and profit margin.

A: There are so many factors involved that it's impossible to find a one-stop answer to your question.

Just for starters, are you talking about the costs a developer incurs in buying raw land, finishing it into building lots and constructing a number of houses?

Or are you talking about what it would cost an individual to purchase a finished lot, then hire pros to build a custom home?

That said, here's some insight into costs in general. Bill Hurme, president of Teambuilder John L. Scott, which deals with new construction, said you'll pay $300,000 to $400,000 for the average 6,000- to 7,000-square-foot lot in Sammamish.

The current rule of thumb is that the lot cost will be about a third of the total project cost.

Thus if a lot is $400,000, the finished house and lot together should cost about $1.2 million. But it really depends on how large the house is, how many amenities it has and whether it's a custom or mass-produced home.

A person who hires a contractor to build a custom home will incur building-permit costs.

In Sammamish the fees depend on the size of a home. For example, a building permit for a 5,200 square-foot home built recently cost just over $10,000. Various impact fees, for parks, schools and traffic, may be added.

Lastly, builders' profit margins "are all over the board because each builder tracks profit a different way," said Suzanne Britsch, senior analyst for New Home Trends in Mill Creek.

But in general, expect 4 to 15 percent will be profit.

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What total LUNACY. How anyone could say this with a straight face and then say there is no bubble is just beyond me....

[deejayoh]