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So what, its probably less than 10%, which is less than the sales taxes on most other things being purchased. We could just as well complain about the profit th

So what, its probably less than 10%, which is less than the sales taxes on most other things being purchased. We could just as well complain about the profit the builder is making, which is likely a lot more given how much most sub contractors are making. Its sounds like a big number until you consider the final cost, aka everything is relative, it would be a much bigger deal if the houses were selling for $100k because then it would be 50% of the cost.

breischl 10y ago
Yes, but the whole point is that the fees are part of the reason why the house costs that much. If you wanted the final house to cost $100k, then you'd have to actually build it for $50k. Which may not even be possible, or if it was it would be so tiny that nobody would want it. They're basically forced to build a (relatively) big expensive house so that the final cost seems reasonable despite the $50k in fees buried in it. Hence why they aren't building entry-level priced houses - they're too cheap to hide the fixed fees.
- seanp2k2 10y ago
  Fees are like 5-10% of the reason. What's the other 90%? Edit: there are no entry-level houses because zoned land in places where people want to live in the bay are is more expensive than a lot + house in most other places. There are lots selling for >$500k or some for just as much with tear-down houses on them. That's not due to the fees.
- hilop 10y ago
  No, they build big houses because rich people can afford it and want it. If people couldn't afford it they'd build smaller houses or townhouses/apartments.
fencepost 10y ago
> So what, its probably less than 10%, If $50k is 10%, that means it's a half million dollar house. That may not be much by comparison to housing stock in California, but there are very few places where that's considered "entry level."
- chiph 10y ago
  In some states, that $50k is the home price. Or (mandatory Detroit joke) the entire block.

breischl 10y ago

Yes, but the whole point is that the fees are part of the reason why the house costs that much. If you wanted the final house to cost $100k, then you'd have to actually build it for $50k. Which may not even be possible, or if it was it would be so tiny that nobody would want it. They're basically forced to build a (relatively) big expensive house so that the final cost seems reasonable despite the $50k in fees buried in it. Hence why they aren't building entry-level priced houses - they're too cheap to hide the fixed fees.

seanp2k2 10y ago
Fees are like 5-10% of the reason. What's the other 90%? Edit: there are no entry-level houses because zoned land in places where people want to live in the bay are is more expensive than a lot + house in most other places. There are lots selling for >$500k or some for just as much with tear-down houses on them. That's not due to the fees.
hilop 10y ago
No, they build big houses because rich people can afford it and want it. If people couldn't afford it they'd build smaller houses or townhouses/apartments.

fencepost 10y ago

> So what, its probably less than 10%, If $50k is 10%, that means it's a half million dollar house. That may not be much by comparison to housing stock in California, but there are very few places where that's considered "entry level."

chiph 10y ago
In some states, that $50k is the home price. Or (mandatory Detroit joke) the entire block.