help me understand...

[Smiling JOe]

I hope that someone can help me understand why we continue to see entry level homes being built with granite counter-tops and nice solid hardwood flooring. Am I just stupid, or does that not add up to common sense? It is all people can do to afford an entry level home in many cases, so why the hell would they expect to get granite counter tops and nice flooring, and have to pay for it over thirty years? Call me crazy, but that, IMO, is just plain crazy.

 

[Jdarg]

I would trade a few hundred more square feet and maybe a garage for the fancy kitchen!

 

[hutch]

SJ- Got me! Why do people buy new cars with a 6 disc CD changer and sunroof for a car that sells for $13,000 then add these extras? Builders could lower the price of the homes without these features, but maybe they sell better with these extras and now you can finance it for 40 years. I think I saw an ad of a local builder that will build you a home on your lot for $134,000in the local paper. House has 1200sq. ft with hardwood floors not sure about the tops. The problem is finding a lot anywhere to match the house cost.

the hutch

 

[TooFarTampa]

I am with you SJ. This has happened in the past 6-7 years and it is amazing to me. On one hand, if people are spending $300K for an entry level home, they feel like they deserve such extras. So it kind of makes sense. On the other hand, it is another example of how luxury items like granite counters and flat screen TVs have become not as much a luxury for some people as a perceived necessity. This kind of thinking has increased the personal debt rate to alarming new heights, but it also has driven our consumer-based economy, so there you go.

The "granite and stainless kitchen" for some reason has become synonymous in the minds of many for "good design," when clearly, CLEARLY it is not. It is a lazy way for many builders to impart a feeling of value, when as jdarg puts it, a better or roomier floor plan or excellent location is a much much better investment. But not everyone gets this. Not at all.

I do applaud the switch back to hardwood floors as being more "standard" than they have been in many years, though, because that is an upgrade that truly adds value and it is healthier for a lot of families to live in. Unfortunately there are substandard hardwood lines being made and installed now too, basically builder knockoffs of the ultimate flooring, which is site-finished, solid maple or oak (or heart pine if you have tons of $$$). So caveat emptor.

 

[Unplugged]

I hope that someone can help me understand why we continue to see entry level homes being built with granite counter-tops and nice solid hardwood flooring. Am I just stupid, or does that not add up to common sense? It is all people can do to afford an entry level home in many cases, so why the hell would they expect to get granite counter tops and nice flooring, and have to pay for it over thirty years? Call me crazy, but that, IMO, is just plain crazy.

SJ, I'm also fascinated by the choices people make with regard to what some might consider upgrades to a new home. I'm not sure that it's a lack of common sense or 'crazy' for someone to want the highest quality they can possibly afford even if it's in an 'entry level' home. Pride of ownership comes in many forms I suppose? Just an observation...
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[Smiling JOe]

SJ, I'm also fascinated by the choices people make with regard to what some might consider upgrades to a new home. I'm not sure that it's a lack of common sense or 'crazy' for someone to want the highest quality they can possibly afford even if it's in an 'entry level' home. Pride of ownership comes in many forms I suppose? Just an observation...
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I understand the consumerism part just fine, but people who need the entry level homes are being priced out of the market due to such additional costs, so they are not the ones buying. What ever happened to fiberglass insert tub/showers, Fromica(TM) counter tops, vinyl flooring, white colored appliances, etc? This is ENTRY LEVEL we are talking about! For a normal person to afford a $300,000 home, they should have earnings of $100,000 per year. Many people don't come close to that. They simply cannot afford entry level homes, which really means that these homes, with all of the upgrades, are not truly entry level. They are really low-mid grade.

There are plenty of people who can afford the upgrades, but there are many people who cannot. You would see more sales if there was more selection of homes below $300K.

Hutch, I know the ad which you mention. Hendco is offering that, but I think the house is 1450sf. The other homes which they have built on that floor plan typically include granite counters, and a few other upgrades. Currently, you can buy lots for $60k-$80k off of hwy 393 N, so realistically, you should be able to build a home for < $250K. If they ditched the upgrades, it would be even more affordable.

 

[Uncle Timmy]

SJ, you make an excellent point.

I have commented a few times on how the now 'standard' features like stainless steel appliances and granite countertops is contributing to the high cost of construction. These items really add up.

 

[Mermaid]

SJ, you make an excellent point.

I have commented a few times on how the now 'standard' features like stainless steel appliances and granite countertops is contributing to the high cost of construction. These items really add up.

I think the upgrades are a nice little bit of gravy for the builders. We had to gut our kitchen at the condo so I did a lot of appliance research. For top-of-the-line Maytag appliances (stove/fridge/microwave/dishwasher), the difference between stainless and white came to $910 extra for the stainless finish. Now compare this to the newly built Seagrove Highlands condos which are not far from ours. The builder is charging $1800 extra for a stainless appliance package. See, a $900 profit for them without very much effort on their part. I do applaud their offering the consumer the choice to upgrade, however. I don't the see the logic of not offering the choice for "entry level" housing. It seems to penalize many.

 

[Beachlover2]

Imagine that extra 1800 over the course of paying for it for 40 years!!!! Plus the appliances won't last that long.

 

[Miss Kitty]

Interesting post. I didn't have stone countertops until my third home was remodeled in 1998. I have been a homeowner since 1979. Of course, back in my day, Corian was all the rage. Do first time homebuyers expect these updates?