Tuesday, August 26, 2008

House Prices

I have traveled a few places & can't understand how a brand new house in Minnesota or Arizona will cost $90,000 while the same house in California will cost $600,000. You will tell me that the reason is because land costs more in California, there are more local, State or County assessments, fees or taxes & that labor costs are higher. OK, I will concede those points & then I will tell you that I am not talking about land costs, I am talking about price per foot to build the house.
California charges enormous fees & assessment taxes to build but when the Architect, Engineer, planning Department, Building Department, Utility companies & special tax recipients get their cut of the money, your house has cost over $100,000 before you started building & if there is a problem with the house & it collapses in the future, it will be the contractor who gets sued because the architect, engineer & county agencies aren't responsible for problems on the house although they charge you to build it. Nice!!! In other states, there are reasonable fees to build a house & the contractor will be responsible for building the house correctly or will be prosecuted just like in California, you just eliminate several wasted steps & non important people making money off the house. Maybe we should take what we need & pass on the savings to the home owner. I know it is a concept long forgotten especially when people are buying houses & selling them for $100,000 profit after 2 years. We have become greedy & need to learn to share because we can't keep going at the pace we are otherwise we will destroy ourselves. Perhaps it's to late but we need to try & it can start with house costs & taking what we need not what we can get.

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