What has really floored me is the amnounts of money the subdivision developers have been charging for their options and upgrades. When compared to the base finishes, the additional costs of these upgrades to the developer are but a fraction of what they were charging. Now I don’t mind if a developer makes a reasonable profit on options, but when I see someone buying a 3,500 SqFt tract home and paying $100k in upgrades and it’s all interior trim and stuff I just shudder.
Five years now the spread between base and maxxed homes in the same neighborhood is going to be probably but maybe 10% of the increased purchase costs on the maxxed homes.
Don’t get carried away with upgrades and options – it doesn’t pay.
Peace,
I’m not quite getting what you’re saying about appraisals being about sqft. Can you give me an example?
