A veteran of the homebuilding industry, Dena Amoruso is the foremost real estate columnist specializing in new home issues, trends, products and designs. Sure, the decorating was different, it looked a little fancier on the outside, and this one displayed the den option instead of the fourth bedroom. But the square footage is identical. At first, it may seem that the homebuilder is trying to pull the proverbial wool over someone s eyes, betting that the same homebuyer would not likely tour the less expensive version.
Builders aren t that dumb, however.
They realize that consumers shopping for new homes may compare areas as well as homes, especially if they are relocating from out of the area. Upon further research, however, one may find that homebuilders charge different prices for the same basic house in different areas for a variety of reasons. Down and dirty . . . One of the most justifiable reasons for price disparities is land value. The cost of the parcels purchased by the builder in one part of town may not be equal to another, enabling the builder to offer lower prices or forcing him to charge higher prices for his finished product.