What is a lake home worth?

Not all square feet are priced the same

We are asked every day, “How much does it cost—per foot—to build a home?” The answer we give is rarely satisfactory, which is, “It depends.” Most people understand that it depends on how the house is finished, but that only scratches the surface. It depends on a great deal more than whether the house has granite or marble countertops in the kitchen.

We have to be careful when we answer, because not every house is the same. For instance, some lake homes are on relatively flat lots, and they are built on a crawl space with a second story above the main level. That design is cheaper to build, on average, than a house on a sloping lot with a walkout basement below. That is because the foundation cost for a properly built basement is more expensive than a crawl space foundation.

Note above that it says, “properly built.” We bump into people who are surprised at our price per foot after they get a ballpark from a contractor that does not build at the lake. For instance, not all foundations are created equal. A concrete block basement retaining wall is less expensive than a structural, poured concrete wall. Correct waterproofing and French drain systems are more expensive when you avoid the “short-cuts.” Quality construction does make a difference on price per foot.

How to Calculate
So when we say a house cost say, $200 per foot to build, most folks take that number and multiply it by the number of square feet of heated and cooled space. So, say a house is 3,000 feet of heated and cooled space, the cost of the lake home would come to $600,000. When we give out a number like that people react in one of three ways. The first is to take it at face value. The second is to think that all footage is the same, and the third way is to think that we are too high, since they built a home in Birmingham cheaper. Each of those views requires some education from us.

For instance, the price per foot quoted is good as a rule of thumb, but it tends to be an “average price.” That means that there are some houses cheaper and some are more expensive. Older homes tend to be cheaper per foot because of land type and décor. Some should be priced cheaper than others.

More to Consider
For those who think that all square footage is the same, that is not true. The two best examples are: Lake homes with garages cost more than those without, or lake homes with 1,200 feet of covered outdoor living should cost more per foot than those with only say 600 feet. Another example is when two homes that both have 4 bedrooms, 4 bathrooms and one kitchen. Say the homes differ in that one is 1,000 square feet larger. The larger home will have a lower price per foot. The reason is that kitchens and bathrooms are expensive rooms and the extra 1,000 feet of “cheaper” space absorbs some of that cost per foot.

For those who think a city house and a lake house cost the same to build, we have to point out that a lake home has a pier, seawall, larger covered outdoor living space, water toy storage rooms and other features that a city house does not have. In addition, the lake home has two fronts, one where the car comes to and one where the boat comes to, with the lake side much more attractive than the driveway side. So, in the above example the cost of a pier, seawall and outdoor living can add $75,000 to a lake home. Dividing that by the 3,000 conditioned feet is $25 per foot.

We work really hard to keep good numbers on the sales prices for every home in our neighborhoods, so when you are shopping for a lake home at Russell Lands On Lake Martin, you are paying fair market value! Call one of our Sales Executives at 256.215.7011 for information today.