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The same house costs a lot more or less

We know the cost per square foot for a house, but what about the cost per mile?

As you travel from western Sussex County toward the beaches, how much more will you spend on the same home, by the same builder, on a similar lot?

Based on location, the same house can cost as much as $75,000 or $100,000 more.  Heres why:

  1. The community is closer to the Delaware Beaches 

  1. The developer and the builder are not the same company 

  1. The developer bought the land recently (or a long time ago) 

  1. This particular lot cost the builder more 

Lets examine each of these in more depth. 

  1. A fundamental principle of real estate is it all begins with the land. The price you will pay for a lot/home package starts with the cost of the lot. The closer that lot is to the Delaware Beach resorts, the more desirable and expensive it will be.

  1. In most cases, the developer and the builder are separate companies. The developer makes money on the lot portion of the sale while the builder makes their money on the house, upgrades, and options. Sometimes the developer is paid at settlement, but the builder often pays for a defined phase of lots, one stage at a time. 

  1. When was the parcel of land acquired? The lucky developer is the first owner or purchased the land directly from the farmer. If it changes hands multiple times, the cost will increase. 

  1. In any community, premium lots that back to ponds or trees command a higher price. The developer makes their profit on premium lots; the builder makes theirs on upgrades and options. 

Here are a few examples:

Schell Model  Walden  Tidewater Landing  Price Difference 
Kingfisher  $464,900  $539,900  $75,000 
Whimbrel  $424,900  $509,900  $85,000 

K Hovnanian Model  Seabrook  Four Seasons Belle Terre   Price Difference 
Rockford  $361,900  $460,900   $99,000

From Walden to Tidewater Landing is 3.7 miles. The same Schell Model in Tidewater Landing starts at a base price of $75,000 - $85,000 more.

From Seabrook to Four Seasons Belle Terre is 8.2 miles; the Rockford by K Hovnanian will start at $99,000 more for the base model home in Belle Terre. 

The base model price is the starting point with most builders. You can expect to spend another 10% to 30% on options and upgrades or more. For more details, refer to this article from 2011 -/2011/07/16/new-home-pricing/or the more recent/2019/10/09/starting-from-new-home-pricing-means/.

Bottom Line

Having a real estate expert guide you through the buying process can help you find the right house in the right location. We will help you find the right community, the right builder, and the home that will work for your future in Delaware. 

Contact us at Active Adults Realty and let us guide you through the home buying process.

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