Chestbrook manor new house price

[Anonymous]

This is a new sub with 12 new houses. This one is asking for 1.715 (start at 1.64 last Dec):http://www.redfin.com/VA/MCLEAN/1657-PERLICH-St-22101/home/42085536

I am wondering how much the profit is?

Whenever I watched HGTV about houses in TX (Houston mostly, austin, etc), $400k to 500k could get you a fancy mansion (probably 5000 sqs) with all the looks-like high end finishes in the kitchen, bedroom, bath and basement. That makes me think that the cost should be less than $100/sq if excluding very cheap land cost (not sure how much). And they still make some money, maybe good money, right?

So, here in NOVA, why the cost (just the cost to build the house) is so high......people saying well above $150/sq for so good quality (not even high-end) finishes?

If I assume the tiny little land (and other fees: permit, documents, foundation, etc) for this house is $400k - 500k (which I double, because they bought a large piece of land for 12 homes, then it should be very low for each piece), and if the cost to build is $150/sq, then this house might be cost 1.3 - 1.4 M, and the profit might be $300k to $400K.......that's good business!

Is there anything wrong with my assumption?

[Anonymous]

If you've just curious about the profit margin, I don't know the answer to your question.

It does look like they've sold 8 of the 12 houses at Chesterbrook Manor in a couple of months, and right now most of them haven't even been built. If you're hoping to bargain down the price in a development with new homes, you'd probably have more luck with some of the developments like Maymont further out in 22182. I think Basheer went into Maymont thinking they'd be able to sell dozens of new homes for over $1.75 M, and has gradually scaled back some of the designs and prices.

[Anonymous]

OP here. Thanks for reply.

Yes, I am curious about the profit margin.

But, I am not hoping to bargain their prices down in such a high demand market, especially in McLean.

Probably not look into Maymond, which is far away from DC.

[Anonymous]

yes land is about 6-700k the rest is costs and then builder profit. All builders use the same contracting team so the difference is plans and how good the GC is in catching errors.

[Anonymous]

Anonymous wrote:yes land is about 6-700k the rest is costs and then builder profit. All builders use the same contracting team so the difference is plans and how good the GC is in catching errors.

I mean GM not GC