The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1909-08-28
Moderate Priced Houses
Continue TO Sell With
Marked, Activity.
FINDS 1T CHEAPER
TO BUY THAN BUILD
BUYER Figures That the Builder S
Profit Eventually Is
a Saving.

After two years Of the most phenome-
nal building record the Capital has ever
experienced--a record produced chiefly
by the unusual demand for homes
somebody has asked:
Is the average Washington moderate
priced house cheap at the priceH
The answer IS being furnished by the
market going right ahead at its old gait,
with no falling OF whatever being re-
corded in the demand for homes. and
with every prospect Of the falls build
ing activity being as heavy as last year
Apparently, the buyer is satisfied. and,
II he has not discovered in two years
that prices are not fair. the chances are
he never will.
Figured out theoretically. or by &C
tual experience. the home-seeAer finds
II cheaper TO buy a small house rather
than construct one himself His saving
which is made possible by the highly
organized methods that are employed in
building operations, seldom, II ever, rep
resents more than the builders profit.
In short. what Is a saving 10 the pur-
chaser is a gain TO the builder. and
sort oS cooperative relationship is es-
tablished between the two which brin-s
about a benefit that could not be derived
otherwise.
Profit in Land.
Frequently IL has been the case in
building operations IN the Capital that
the builders profit has come through
the land alone while the houses have
been sold practically at cost. With an
entire tract OF ground which is large
enough to accommodate the construc-
ton OF twenty-five or more houses
bought up. the lots in many instances
have cost no more than $500 or $500 on
an average. while. had they been bought
individually they possibly would have
cost $500 or more
When the houses are built and put
on the market the lots are counted in
at their normal market value OF $500.
while the houses themselves often are
figured in the price at mere cost.
The result is the builder makes a
substantial profit while the purchaser
pays for the lot at its normal value
/and gets the house for its exact cost.
without having had the worry Of over
seeing its construction.
Another Saving.
It IS rot always. however, that even
a goOd-slzed tract Of land can be
bought at enough OF bargain TO make
any difference in the prices Of the IN
dividual lots. and. when this is the case
the builder must add his profit TO tie
house or lot, or both Even with this
profit tackled on. the ultimate price viii
be below the cost 70 an individual In
constructing a house, as the profit is
less than the difference between whole
sale and retail prices on building ma
terial and the amounts named in sub
contracts for the carrying out or GER
tain features OF big building jobs and
smaller ones.
IL is generally estimated that the aver
age 5000 house, which is a part OF a
building operation, If constructed by al
individual would cost $500 or more
After the difference I'm the price Of laut
is estimated. differences begin TO max,
themselves manifest all along the line
beginning with excavation and COnclud
Ing with the installation Of fixtures. Tn,
excavation feature counts for GOO
deal as where single lots are (eXCavatet
the price Is much heavier than in case,
Of larger operations
Cost of Labor
The employment Of labor is anothe
item that figures largely. and, as re
suit, the saving Of time is often include
in the profit, since the labor cost is gen
orally capable Of being more materially
reduced by experienced builders than in
experienced ones.
With the growing desire Of Washing
tonisns 70 own their own homes, an
with a great deal Of land still availabI
upon which they may be built In larE
opers tiOns there is no doubt but Una
the moderate priced house is destined c
continue 10 play a big part In the Cap
tails building activities.
The buyer nowadays gstS a well-cor
structod house at an abucmdlly lO'
price and at terms which usually -
be met with the slightest difficulty
There has Iever been q time more "a
vorable than the present FOR The man Z
moderate means TO own his Or-a home