Re: Apportion Costs vs. Size of Unit | <– Date –> <– Thread –> |
From: Pablo Halpern (phalpernworld.std.com) | |
Date: Fri, 31 Mar 95 09:46 CST |
> From: DianaLacz [at] aol.com > How did you apportion the cost of land, common facilities, unit constructi > and soft costs relative to the size of units and sales price? This issue has been discussed several times on this list. I suggest you look at the gopher archives or, better yet, the new Web pages. One thing to keep in mind is whether your development budget will be lower than, higher than, or approximately at the market rate for a development of your size in your area. If, as in New View's case, your development costs are close to or higher than the market rate for housing, then you will probably need to use a formula that is based heavily on the appraised value of each house. Otherwise, you are likely to have some families paying under market rate while others pay well over market rate. Given the usual realities of bank financing and resale, it would be difficult for many people to pay much over market rate for their house. (This is a practical answer to a practical question. Please, lets not start another discussion about whether the banking system is good or bad!) New View had several intra-group conflicts caused by our appraiser changing his mind and/or misunderstandings between us and our appraiser. Having your house price determined by a pre-construction appraisal late in the design phase is no fun. One idea you might consider is to create a formula, based on square footage, bedrooms, fixed costs, etc., that is deliberately contrived to be close to market rate for each unit. Then, you might be freed from the tyrany of appraisals. Then again, you might not be. It was just a thought. Good luck. From previous discussions on this list, it seems that this issue is one of the toughest many groups have had to face in the development process. It certainly was for New View. - Pablo ------------------------------------------------------------------------ Pablo Halpern (508) 435-5274 phalpern [at] world.std.com New View Neighborhood Development, Acton, MA, U.S.A. ------------------------------------------------------------------------
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Apportion Costs vs. Size of Unit DianaLacz, March 30 1995
- Re: Apportion Costs vs. Size of Unit Pablo Halpern, March 31 1995
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