Land value factor in home price

[jficquette]

[quote=oxfordrick]Good historic boomtime rule.

Land prices fall faster than construction costs and house prices in a crash. If things get bad enough land may not even be worth the unpaid property tax and Mello Roos debt thta has attached.

Which would be a problem for the bondholders, not to mention the other residents of the subdivision.[/quote]

Thats why builder’s can always make money even in the worst of markets if they can get the land cheap enough.

[sd_owner]

Lot Price = Home Price – Home Construction Price – Builder Profit.

In Detroit, lot price is already negative. In San Diego, some homes have negative lot price but most still have good values.

In nearby 4S Ranch, a 5700-6000 sqft lot cost the builders ~$180K-$200K back in 2001 and ~$300K today.

[sd_owner]

Lot Price = Home Price – Home Construction Price – Builder Profit.

In Detroit, lot price is already negative. In San Diego, some homes have negative lot price but most still have good values.

In nearby 4S Ranch, a 5700-6000 sqft lot cost the builders ~$180K-$200K back in 2001 and ~$300K today.

[sd_owner]

Lot Price = Home Price – Home Construction Price – Builder Profit.

In Detroit, lot price is already negative. In San Diego, some homes have negative lot price but most still have good values.

In nearby 4S Ranch, a 5700-6000 sqft lot cost the builders ~$180K-$200K back in 2001 and ~$300K today.

[sd_owner]

Lot Price = Home Price – Home Construction Price – Builder Profit.

In Detroit, lot price is already negative. In San Diego, some homes have negative lot price but most still have good values.

In nearby 4S Ranch, a 5700-6000 sqft lot cost the builders ~$180K-$200K back in 2001 and ~$300K today.

[sd_owner]

Lot Price = Home Price – Home Construction Price – Builder Profit.

In Detroit, lot price is already negative. In San Diego, some homes have negative lot price but most still have good values.

In nearby 4S Ranch, a 5700-6000 sqft lot cost the builders ~$180K-$200K back in 2001 and ~$300K today.

[Author]

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