Chuck said the same builder would charge $200/sf to $225/sf to build the same quality house across the street. You could use one of their plans or design your own.
They include a $50,000 flooring allowance for these two that are already complete.
Jim – once you turn key the house with front/rear landscape you’re going to be in the $250/sf range.
The finishes were nice, however, there was nothing ‘custom’ in that house so i do think his quote of $200/psf or so is honest. Start adding in beams, and trick custom details (i.e. a textbook RSF starter custom job) then you get to $300/sf pretty fast.
From the inventory that I see, there are A LOT of choices at the $2mm level in the custom/semi custom arena….lots of choices….thus $2mm seems a bit stiff…$1,750k is getting closer to reality (still high from my perspective) but beginning to find a better spot relative to other higher end homes along the 56 area.
in summary, his improvent costs are on target, but his land component at $1mm is overpriced..IMHO.
There’s not much custom/semi-custom in the CV area under $2 million, but you’re thinking Santaluz, etc.?
For example, 7802 Sendero Angelica in Santaluz just closed for $1.7 million. Brand new 4,630sf one-story on a 34,000sf lot with views that sold $500,000 below builder’s cost, according to the MLS remarks.
justme
on April 18, 2010 at 12:36 pm
Wow, nice quality. This is a nit but I’d have the builder replace the master bath surfaces though. The concrete look goes in a metro home and works for that look or someone with specific tastes. Enjoyed looking at custom for a change.
GeneK
on April 18, 2010 at 12:48 pm
Apparently the English language has changed again while I wasn’t paying attention. My idea of a “custom home” is one built to my preferences – site layout, floor plan, fittings, finishes, etc. If the house is already a fait accompli before I ever see it, then it’s just another builder spec home. Whatever its quality might be, there’s nothing “custom” about it.
Anonymous
on April 18, 2010 at 12:55 pm
Not worth 2M but they will get 2M easily.
I agree about the inventory debate….you could get a lot better house for 2M (sluz etc)
Then again, you don’t actually design your own when you get “custom wheels.”
chris g
on April 18, 2010 at 2:14 pm
How could anybody buy that house instead of that $1.8 million house in Leucadia on Sunset?
For $200k you can make the Leucadia house very nice and you will save $1500/month in property taxes for the rest of your life. Plus, you get a pool, a tennis court, and mature landscaping that you frankly just cannot buy.
justme
on April 18, 2010 at 5:17 pm
Chris g….not following your math. Don’t you mean they’d save $2.5K additional property tax per year (200K x .0125)? I doubt people that buy 2M homes worry about such change.
Kingside
on April 18, 2010 at 5:38 pm
Umm…I have seen that Leucadia house on Sunset.
Great potential, but $200k won’t even begin to address the issues with that place. I think you would need a budget closer to a mil to make that place “very nice”.
And that mature landscaping is a high maintenence view killer. Most of it needs to come down.
Dwip
on April 18, 2010 at 5:53 pm
Nice place, beautiful details. To my ear, “custom” here means “architecturally interesting” as opposed to “tract house run of the mill”.
I do wonder about it being right next to that road though. The house diagonally across the street, with view, and one in from the road is going to be more appealing.
Blissful Ignoramus
on April 18, 2010 at 6:05 pm
“Custom” means that the house was designed with the buyer’s input and that it contains unique features that reflect those specifications. I see no reason to think that that house was not “custom.” The fact that a third party doesn’t like some of those features doesn’t mean it’s not custom. It merely highlights the problem with custom design: tastes vary.
chris g
on April 18, 2010 at 6:08 pm
The house on Leucadia/Sunset is historical so it pays a lot less property tax (see listing).
I toured the house, too. It doesn’t need a million. Sure, you could spend a million but you could also make it breathtaking for $200k. That “Custom” house will never ever be breathtaking. It’s a cookie-cutter home with fancy trim. Blah. They’re going to build 10 more cookie’s from the same mold right next to it and block your ocean view. Meanwhile, you’ll be pay $2000 per month just for property taxes.
I’d take the Leucadia home for the same net price, save the taxes, play some tennis, swim, enjoy your 2 guest houses, 4 car garage and mature landscaping. It’s a much classier house for the same dime.
I also have to agree with GeneK. This is not a custom built home. The house is already built. There has been no feedback whatsoever from the future homeowner. The only way it can be customized at this stage is if a section is torn down or an add-on is built.
GeneK, Francois: Seems like a debate of semantics on the ‘custom’ home definition.
Being a seasoned custom home community developer
I call this a custom built home. Just because the buyer didn’t design it doesn’t make it a ‘production home’ which is what a tract home is.
If I build a custom home for myself then sell it, by by your definition it would no longer be a custom home????
The use of the word ‘spec’ when describing a home is simply whether it is being built without a buyer. Spec can be a production home or a custom home and has no bearing whether it is a custom home, semi-custom, or production home.
Thus, this is a custom home, albeit it won’t suit my needs, or most people needs. All the builder cares about is that it suits 1 family’s needs…and fast!!
tj & the bear
on April 18, 2010 at 9:19 pm
Agree with clearfund — a “custom” has always been a non-tract home.
Geotpf – Hard cost on a ‘typical’ tract home can range from $35/sf for a low level Riverside quality home to $65/sf for a ‘higher end’ coastal north county san diego master plan.
These numbers come directly from the President of a public top 3 national builder who lives by me. I was shocked they could build for so little, but it really makes a lot of sense when you think it through.
tj & the bear
on April 19, 2010 at 9:07 am
Yeah, well, it’s a shock because people realize how little actually goes into the house itself here in California.
I have a friend who is currently having a 6000 sq ft custom house built (with architectural plans and everything all inclusive) for about $200 sq ft. in Newport Beach. A true one-off house with bells and whistles.
Clearfund can comment with more authority, so if he says it, I believe it. Same with Larry Roberts. I know that even during the bubble, hard costs were less than $100 sq ft for mid to upper-level tract homes. With all of the slack in construction work, you can get excellent pricing from generals and subs. It’s a good time to build if you have land with a low cost basis.
I like that house. But, I wouldn’t pay 2M for it. That dirt seems too pricey. You can today get better deals in more pricey locales than CV. But, for Nouveau Riche idiots, it might fit the bill. If I were going to spend that much, there are some nicer digs in Newport Coast that I’d rather have (even if they are tract built).
“Custom” does not mean better.
Chuck
Geotpf
on April 19, 2010 at 9:46 am
At $35/sq ft, even depressed areas (such as Riverside) should be profitable, since they should be able to get at least $115/sq ft when they sell them (again, in Riverside), maybe $150/sq ft or more. Even at $65/sq ft, it seems profitable to me.
Jeeman
on April 19, 2010 at 11:02 am
Sorry, even if I had the money, I’m not feeling it for this house. The house itself is nice, but not the price for the location, view, etc.
Chuck – When you get into the ‘custom’ building its really 100% subjective on pricing. The question is for $200/sf what am I really getting?
Items to factor into a custom price are wall thickness, using 2×4 or 2×6 studs, custom blend clay tile roof vs. concrete 2-tile, custom sized windows vs standard, special doors/sliders, and the level of interior finishes can take a house from $200psf to $300psf in about 5 min.
Many people tend to try to save money in areas they think they will not notice it just because the line item is so big, and easy to cut, but the end product suffers.
My counsel, if you cannot afford to get what you really want in a custom, wait and buy a high end semi custom home nearby. Otherwise you’ll get an inferior product for your $$$ and the market will penalize you for it big time…
PS: Labor has come down, but the actual inputs (wood, copper, etc) have not dropped much in reality. Check your builders, and subs, insurance policies and be sure they are CURRENT and don’t rely on a paper certificate as proof, and monitor it during construction so you don’t end up with claims coming back to you…
GeneK
on April 19, 2010 at 12:28 pm
If someone was selling a home they had had custom-built for them after living in it for some length of time, I’d accept that as a “custom home.” Likewise, if the builder told me he’d change anything I wanted changed within the contracted price (within reason, of course, not tearing the whole thing down and starting over), I’d accept that. But otherwise, no. It might have been “custom built” for somebody else, but not for me. And if I ever was in a position to drop $2M on a home, it would have to have been “custom built” for me.
Jim, what would it cost to build that size house on one of the milly lots across the street?
Chuck said the same builder would charge $200/sf to $225/sf to build the same quality house across the street. You could use one of their plans or design your own.
They include a $50,000 flooring allowance for these two that are already complete.
Jim – once you turn key the house with front/rear landscape you’re going to be in the $250/sf range.
The finishes were nice, however, there was nothing ‘custom’ in that house so i do think his quote of $200/psf or so is honest. Start adding in beams, and trick custom details (i.e. a textbook RSF starter custom job) then you get to $300/sf pretty fast.
From the inventory that I see, there are A LOT of choices at the $2mm level in the custom/semi custom arena….lots of choices….thus $2mm seems a bit stiff…$1,750k is getting closer to reality (still high from my perspective) but beginning to find a better spot relative to other higher end homes along the 56 area.
in summary, his improvent costs are on target, but his land component at $1mm is overpriced..IMHO.
There’s not much custom/semi-custom in the CV area under $2 million, but you’re thinking Santaluz, etc.?
For example, 7802 Sendero Angelica in Santaluz just closed for $1.7 million. Brand new 4,630sf one-story on a 34,000sf lot with views that sold $500,000 below builder’s cost, according to the MLS remarks.
Wow, nice quality. This is a nit but I’d have the builder replace the master bath surfaces though. The concrete look goes in a metro home and works for that look or someone with specific tastes. Enjoyed looking at custom for a change.
Apparently the English language has changed again while I wasn’t paying attention. My idea of a “custom home” is one built to my preferences – site layout, floor plan, fittings, finishes, etc. If the house is already a fait accompli before I ever see it, then it’s just another builder spec home. Whatever its quality might be, there’s nothing “custom” about it.
Not worth 2M but they will get 2M easily.
I agree about the inventory debate….you could get a lot better house for 2M (sluz etc)
Thanks Gene, and Happy Sunday to you.
I can easily imagine that house selling for a million (if it remains another 12 to 18 months on market).
I agree with GeneK – custom means built to my specifications, not the builders. I think the appropriate word for houses like this is “designer house.”
Then again, you don’t actually design your own when you get “custom wheels.”
How could anybody buy that house instead of that $1.8 million house in Leucadia on Sunset?
For $200k you can make the Leucadia house very nice and you will save $1500/month in property taxes for the rest of your life. Plus, you get a pool, a tennis court, and mature landscaping that you frankly just cannot buy.
Chris g….not following your math. Don’t you mean they’d save $2.5K additional property tax per year (200K x .0125)? I doubt people that buy 2M homes worry about such change.
Umm…I have seen that Leucadia house on Sunset.
Great potential, but $200k won’t even begin to address the issues with that place. I think you would need a budget closer to a mil to make that place “very nice”.
And that mature landscaping is a high maintenence view killer. Most of it needs to come down.
Nice place, beautiful details. To my ear, “custom” here means “architecturally interesting” as opposed to “tract house run of the mill”.
I do wonder about it being right next to that road though. The house diagonally across the street, with view, and one in from the road is going to be more appealing.
“Custom” means that the house was designed with the buyer’s input and that it contains unique features that reflect those specifications. I see no reason to think that that house was not “custom.” The fact that a third party doesn’t like some of those features doesn’t mean it’s not custom. It merely highlights the problem with custom design: tastes vary.
The house on Leucadia/Sunset is historical so it pays a lot less property tax (see listing).
I toured the house, too. It doesn’t need a million. Sure, you could spend a million but you could also make it breathtaking for $200k. That “Custom” house will never ever be breathtaking. It’s a cookie-cutter home with fancy trim. Blah. They’re going to build 10 more cookie’s from the same mold right next to it and block your ocean view. Meanwhile, you’ll be pay $2000 per month just for property taxes.
I’d take the Leucadia home for the same net price, save the taxes, play some tennis, swim, enjoy your 2 guest houses, 4 car garage and mature landscaping. It’s a much classier house for the same dime.
Also thinking of Fairbanks Highlands in 92130 as I’d expect it to break anyday now.
There have been 7 or so listings +/-$2mm and very few ever close. All homes are 4k-6k on 1 flat acre or so.
Sooner than later someone will go at $1.7 and down it will tumble…same for Santaluz…
Just too much inventory in the $1.7mm-$2.9mm for the market to absorb.
I also have to agree with GeneK. This is not a custom built home. The house is already built. There has been no feedback whatsoever from the future homeowner. The only way it can be customized at this stage is if a section is torn down or an add-on is built.
GeneK, Francois: Seems like a debate of semantics on the ‘custom’ home definition.
Being a seasoned custom home community developer
I call this a custom built home. Just because the buyer didn’t design it doesn’t make it a ‘production home’ which is what a tract home is.
If I build a custom home for myself then sell it, by by your definition it would no longer be a custom home????
The use of the word ‘spec’ when describing a home is simply whether it is being built without a buyer. Spec can be a production home or a custom home and has no bearing whether it is a custom home, semi-custom, or production home.
Thus, this is a custom home, albeit it won’t suit my needs, or most people needs. All the builder cares about is that it suits 1 family’s needs…and fast!!
Agree with clearfund — a “custom” has always been a non-tract home.
Thanks – in an ocean of CV tract homes, it doesn’t take much to be a custom, just non-tract.
If a custom house costs $200/sq ft (plus land and legal fees), what does a tract house cost to build these days?
Geotpf – Hard cost on a ‘typical’ tract home can range from $35/sf for a low level Riverside quality home to $65/sf for a ‘higher end’ coastal north county san diego master plan.
These numbers come directly from the President of a public top 3 national builder who lives by me. I was shocked they could build for so little, but it really makes a lot of sense when you think it through.
Yeah, well, it’s a shock because people realize how little actually goes into the house itself here in California.
I have a friend who is currently having a 6000 sq ft custom house built (with architectural plans and everything all inclusive) for about $200 sq ft. in Newport Beach. A true one-off house with bells and whistles.
Clearfund can comment with more authority, so if he says it, I believe it. Same with Larry Roberts. I know that even during the bubble, hard costs were less than $100 sq ft for mid to upper-level tract homes. With all of the slack in construction work, you can get excellent pricing from generals and subs. It’s a good time to build if you have land with a low cost basis.
I like that house. But, I wouldn’t pay 2M for it. That dirt seems too pricey. You can today get better deals in more pricey locales than CV. But, for Nouveau Riche idiots, it might fit the bill. If I were going to spend that much, there are some nicer digs in Newport Coast that I’d rather have (even if they are tract built).
“Custom” does not mean better.
Chuck
At $35/sq ft, even depressed areas (such as Riverside) should be profitable, since they should be able to get at least $115/sq ft when they sell them (again, in Riverside), maybe $150/sq ft or more. Even at $65/sq ft, it seems profitable to me.
Sorry, even if I had the money, I’m not feeling it for this house. The house itself is nice, but not the price for the location, view, etc.
Chuck – When you get into the ‘custom’ building its really 100% subjective on pricing. The question is for $200/sf what am I really getting?
Items to factor into a custom price are wall thickness, using 2×4 or 2×6 studs, custom blend clay tile roof vs. concrete 2-tile, custom sized windows vs standard, special doors/sliders, and the level of interior finishes can take a house from $200psf to $300psf in about 5 min.
Many people tend to try to save money in areas they think they will not notice it just because the line item is so big, and easy to cut, but the end product suffers.
My counsel, if you cannot afford to get what you really want in a custom, wait and buy a high end semi custom home nearby. Otherwise you’ll get an inferior product for your $$$ and the market will penalize you for it big time…
PS: Labor has come down, but the actual inputs (wood, copper, etc) have not dropped much in reality. Check your builders, and subs, insurance policies and be sure they are CURRENT and don’t rely on a paper certificate as proof, and monitor it during construction so you don’t end up with claims coming back to you…
If someone was selling a home they had had custom-built for them after living in it for some length of time, I’d accept that as a “custom home.” Likewise, if the builder told me he’d change anything I wanted changed within the contracted price (within reason, of course, not tearing the whole thing down and starting over), I’d accept that. But otherwise, no. It might have been “custom built” for somebody else, but not for me. And if I ever was in a position to drop $2M on a home, it would have to have been “custom built” for me.