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"we were able to purchase the house for $45,000 less than the cost to build it. " It was sold on a massive loss (around 150k to build years earlier). There mus
by xxs 6y ago
"we were able to purchase the house for $45,000 less than the cost to build it. "
It was sold on a massive loss (around 150k to build years earlier). There must be something terribly wrong judging by the price alone.
- bryanrasmussen 6y agoNot necessarily - prices in the region might have depreciated overall, maybe it was built in a market high and sold at a market low point. The people/company selling it might have had other monetary problems and were thus selling because they needed money and couldn't afford to wait. If you build an underground house it is probably because you want an underground house, if you then die your heirs might not want an underground house, but to sell it they have to find someone who wants an underground house, thus to make it more interesting to buy they lower the price because maybe someone on the fence about living in an underground house will be willing to give it a try.
- goodcanadian 6y agoIf there is an oversupply of houses in an area, prices will be less than the cost of construction. Some people still build new because they want something in particular. If they then have to sell, well, they are going to sell at a loss no matter how good the house is.