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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
by 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 agoFees 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 agoNo, 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.