Quote:
Originally Posted by thommy
if in your future houses are build by american workers NOBODY can afford a house anywhere in the US.
why donīt you complain the prices in beverly hills?
is that also because of the illegals there?
according to stone old market rules a region becomes more expensive when it has a high demand. so following your logic california should be the cheapest place on earth, idiot !
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You're a bit clueless in a number of things but real estate is a biggie..
In Beverly Hills those people have money to burn... In turn they can "overpay" and they can have all of the added frills that don't come into account when an appraiser is doing the appraisal which is how value is determined and what the loan is based on.. If you build a 2000sf house and average cost to build is $125sf then you have a $250k average to work with... There's not much wiggle room there... If you build said house in Beverly Hills you add land value on top of that... There's not much wiggle room there either.. Now if the person buying or building the house wants all sorts of special design aspects and high-end addons like gold faucets throughout those things are just that.. Addons.. And they won't be taken into consideration in the appraisal or the loan.. Sure the appraiser could mention them.. But they have no value as far as the loan is concerned... So when fancy pants "I need someone to sort the colors of my jelly beans" singer or actor comes along and wants that Beverly Hills home built to their specs they are generally paying out of pocket for all of those extra added "benefits" That sort of thing doesn't work in the real World of real estate.. If you build that same home with all of those added frills pretty much anywhere outside of money to burn neighborhoods you as the owner are pretty much guaranteed to lose money when you go to sell it.. You have to be extremely lucky enough to find a buyer who has the same tastes as you and willing to pay extra at closing for all of those added frills.
Back when Rochard bought his home things where a bit different.. They've tightened up on appraisals even more so now.. Back then an appraiser could get away with adding a few things here and there.. They could stretch their comp area out a bit to stretch the value.. But in todays World that's A LOT tougher to do... Pretty much anyone can log on to one of the many websites and get a pretty good idea of comparable value.. Underwriters have boat loads of tools a their disposal to dispute an appraised value if needed these days.
In addition, Rochard has a few other negatives going for him if he had to resell right now.. 1st is the homeowners association.. When a prospective buyer comes along that home owners association fee is REDUCED from what the buyer qualifies for in monthly payment.. home owners associations are value killers. Then he has the solar panels. Which is another fixed monthly bill the buyer has to agree to. Added frills... Less potential buyers.