Original Post on Dec 20th 2008- Parameters defined

I’ve been giving some thought as to what the typical house is here for just under the $500 mark. Most lots in the Dallas/ Fort worth metroplex (depending on the area) are going to be going for 150k to 250k per half acre, roughly. Of course, this drops significantly as you move further from the city centers.

I’m thinking a house this size is probably going to be on a 1/3 of an acre (possibly a bit smaller). Since I don’t do a lot of estimating in my line of work, I’m trying to deduce the house cost minus the typical lot price. Let’s say the lot cost is about 160K, plus the 472K for the project, brings the price up to 622k.

For 622k, I am designing homes that are 3500 to 3800 s.f.. 4 bedrooms, 2 dining areas, single living, 3 car garage, with a flex Game Room/ Study/ 5th bedroom sometimes.

However, I think at this price point, it puts the design well out of the reach of the masses in the area, and I was really wanting something more “entry” level. So, for this area, I am going to revise some of the parameters.

I’d like to keep the design under 2500 s.f. . Construction costs here should be closer to the 125/ s.f. mark, which leaves room for a fairly nice finish out (marble or granite countertops, wood clad windows, perhaps some cast stone one the exterior). That still puts the house cost at 300k, plus the lot, but it’s probably more in line with someone’s 2nd house, if not their first.

Now, I have to resolve what should fit in a 2500 s.f. house. I’m thinking single living room, single dining (possibly an “eat in” island in the kitchen, or a very small nook). I’d like to have a flex space downstairs that could be a study or a guest bedroom, 2 car garage. Master bedroom downstairs, with 2 bedrooms and a single bath upstairs. Master bath and a guest/powder bath down. Rooms will be a bit smaller, but this all should fit in 2500 s.f., I think. I’ll start some sketching later today perhaps.

The real question is, though, can a smaller house (at 2500 s.f.) with a better finish out and finer details, that is well designed and thought out REALLY sell better than a house that is 500 s.f. larger and at the same price point? WIll people only look at the cost/s.f. and simply move on to the larger home? I think that is what MANY people wind up doing, and why the market is in the shape it’s in now, sadly.