New Home Pricing benchmarks

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irvinehomeowner

irvinehomeowner

Well-known member
Now that we are starting to see other non-TIC developments in Irvine, what do you think their pricing benchmarks should be?

The New Home Company, has their smallest plans at Lambert Ranch starting in the low $900ks for a 2700sft house. Contrast that to William Lyon, who has two in-fill projects in Woodbridge and University Park, also starting in the low $900ks but their homes are smaller starting at 2200sft. And while both do not have Mello Roos... Taylor Morrison's Las Ventanas start at at $625k for their smallest plan, 1871sft, to $720k for their largest plan, 2300sft.

Granted, these are different areas with their own pros and cons, but the range in pricing and size is diverse.

With Maricopa in Stonegate winding down (high $700ks starting at 2262sft), I'm thinking that the smaller Mendocino plans will be in the $700k range to put them near Las Ventanas pricing.

For the size, Lambert Ranch actually has Las Ventanas like pricing (about $330/sft) and without Mello Roos, that gives it more value... but I think Lyon is rather high at over $400/sft... they are even above Laguna Altura pricing.

What do you think?
 
I think we showed too much enthusiasm for the wtf $400/sq ft pricing at the Lyon projects.. I blame myself... Resale in those areas won't be able to support these pricing once the newness wears off...

Lambert seems to be doing well.. wonder if they have sales contracts translated into another language.. How do you say landfill in Chinese?  I still don't like Portola but that's just personal issues...

I don't have high hopes for Mendocino.. Maricopa was such a disappointment.. I doubt they will price similar to Las Ventanas... low $800s probably
 
irvinehomeowner said:
Now that we are starting to see other non-TIC developments in Irvine, what do you think their pricing benchmarks should be?

The New Home Company, has their smallest plans at Lambert Ranch starting in the low $900ks for a 2700sft house. Contrast that to William Lyon, who has two in-fill projects in Woodbridge and University Park, also starting in the low $900ks but their homes are smaller starting at 2200sft. And while both do not have Mello Roos... Taylor Morrison's Las Ventanas start at at $625k for their smallest plan, 1871sft, to $720k for their largest plan, 2300sft.

Granted, these are different areas with their own pros and cons, but the range in pricing and size is diverse.

With Maricopa in Stonegate winding down (high $700ks starting at 2262sft), I'm thinking that the smaller Mendocino plans will be in the $700k range to put them near Las Ventanas pricing.

For the size, Lambert Ranch actually has Las Ventanas like pricing (about $330/sft) and without Mello Roos, that gives it more value... but I think Lyon is rather high at over $400/sft... they are even above Laguna Altura pricing.

What do you think?
Click to expand...
All the builders are going to price off what the market is willing to bare.  They all know that there is a lack of inventory and are pricing their products accordingly.  WL thinks that they can get a higher price/sf in WB and UP because they are selling a brand new product compared to surrounding homes that are 25-30+ years old.  We shall see if they are able to get those kind of prices.
 
Charging a premium over an already slow selling neighborhood (Laguna Altura) isn't market pricing to me.

If you want to create buzz... you should advertise it lower and then just bump it up after the first phase... that's an easier way to figure out market pricing... and it gets people to wait.

Right now, if I had $900k, I wouldn't spend it on either of those Lyon properties... I would just buy a 3-car garage resale home somewhere else in Irvine.
 
irvinehomeowner said:
Charging a premium over an already slow selling neighborhood (Laguna Altura) isn't market pricing to me.

If you want to create buzz... you should advertise it lower and then just bump it up after the first phase... that's an easier way to figure out market pricing... and it gets people to wait.

Right now, if I had $900k, I wouldn't spend it on either of those Lyon properties... I would just buy a 3-car garage resale home somewhere else in Irvine.
Click to expand...
My guess is that WL believes that the location of both of their developments is better than LA.  When you look at just the price then yes it is similar but when you start factoring the lack of Mello Roos and $200 lower HOA then it starts to look better.  Like I said, we shall see how the pricing is accepted by the public. 
 
irvinehomeowner said:
And while both do not have Mello Roos...
Click to expand...

There's your answer.  Would you rather pay an extra $200k up front or spread out over 30 years.  It's actually a better deal for the builder to charge you up front.
 
test said:
irvinehomeowner said:
And while both do not have Mello Roos...
Click to expand...

There's your answer.  Would you rather pay an extra $200k up front or spread out over 30 years.  It's actually a better deal for the builder to charge you up front.
Click to expand...
So why charging more upfront instead of having the high Mello Roos, will that also keep out the riff raff?  :P
 
test said:
irvinehomeowner said:
And while both do not have Mello Roos...
Click to expand...

There's your answer.  Would you rather pay an extra $200k up front or spread out over 30 years.  It's actually a better deal for the builder to charge you up front.
Click to expand...
This is something that I think needs to be discussed more.

For both Woodbridge and University Park, what would Mello Roos or 1915 funds be used for? Infrastructure is there, streets, parks, schools etc... so there really is no extra cost for the builder to pass on to the buyer. In their case... it's not like they are "saving" buyers supplemental taxes because there are none.

It can be argued the same for Lambert Ranch, most of the surrounding area has been developed by TIC funds... any infrastructure costs are relatively minor compared to the bigger developments. But because it is a new area, I understand there may be more infrastructure costs than WB and UP... but it may not be as much as we think so when TNHC says they are "building it into the price"... that could just mean "extra profit for them".
 
test said:
There's your answer.  Would you rather pay an extra $200k up front or spread out over 30 years.  It's actually a better deal for the builder to charge you up front.
Click to expand...

I would rather have no 'Mello Roos' taxes and if that increases the cost of the home, then so be it.

Take a look at these 3 homes (basically exact floorplan but in different parts of Irvine):
- 16080 Valley Oak  (Oak Creek - built in 2002)  Special Assessments: $1985.04
- 61 Greenhouse (Turtle Ridge - built in 2003) Special Assessments: $2842.84
- 104 Great Lawn (Woodbury - built in 2005) Special Assessments $3868.84

I don't know the details for why these 'Mello Roos' taxes vary so much but I find it a bit peculiar that they continue to increase.  Prices went up from 2002-2005 but does that mean 'Mello Roos' also had to go up?
 
iho is exactly right.  It's either extra profit for them or the location/contaminated ground water premium.
 
USCTrojanCPA said:
test said:
irvinehomeowner said:
And while both do not have Mello Roos...
Click to expand...

There's your answer.  Would you rather pay an extra $200k up front or spread out over 30 years.  It's actually a better deal for the builder to charge you up front.
Click to expand...
So why charging more upfront instead of having the high Mello Roos, will that also keep out the riff raff?  :P
Click to expand...

yeah, I'd rather pay more upfront for the home than pay mello roos that aren't even tax deductible. Plus, when you resell your house, buyers will be looking at the price you paid for the home (not accumulated price after mello roos)
 
I doubt TIC will charge less for Mendocino than Maricopa.
Probably about the same as Maricopa, if not more  >:(
But it all depends on what the pricing will be for the homes to be built on the other side of 133, next to Portola Spring.
Anyone has any more info on that project?
 
That particular tract is one of the more premium areas in Woodbridge... the Landings 2. It's where all the action is during Halloween. 4th of July, Christmas etc.

At the pricing WL is putting their North Lake project at... the 3CWG is a much better deal.
 
homer_simpson said:
I just can't get the residence 2 of the Grove out of my head.  :'(
Click to expand...
You can have it... you just need to deal with getting all that cash out of your bank account.

BTW... I was looking at the floorplans to see what you were salivating about and this image is at the top of their page:

GROVE_0.jpg


Talk about market targeting.
 
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