Demystifying Home Value

As you shop for a new home, you'll quickly discover that pricing is all over the map. Even new construction homes by the same builder within a single neighborhood could have a range of prices.

What goes into home pricing? And why are some new homes valued higher than others? At Overstreet Builders we believe in transparency. We want you to make informed decisions on your next home purchase. So in this blog, we will demystify the variables that go into pricing for new construction homes.

Location is one of the most significant factors when it comes to new home pricing. A new home in a highly desirable location (great schools, access to job opportunities, low crime, etc.) will sell for more than one in an average neighborhood.

Demand is also an important factor that ties into location. If new homes are consistently selling above asking price in a particular area, the market will respond with higher prices to reflect the demand.

Even the specific slice of land your home sits on has an impact. Large lots with beautiful views will command higher value. Especially if there's less developable land available or significant infrastructure that makes access difficult.

Overstreet Builders offers new construction homes in three beautiful communities in the Chicago suburbs. We've considered many of the location factors above to create an appealing environment new homebuyers love! But you're not just limited to our Signature Neighborhoods — we also offer a build on your lot program to give you freedom of location!

One more thing to consider; location also affects building costs. Labor rates differ across states and locations based on average wage scales or union/nonunion contracts for new home construction. 

For example, new home builders in Chicago may face higher labor costs compared to new home builders in Cleveland. It's important to note that Overstreet Builders has a great relationship with our subcontractors, allowing us to price competitively for the value of the home.

The size of your new construction home will be another influential factor for pricing. A house's value is often determined by its price per square foot, but this varies considerably. A new home for $100 per square foot might appear to be a bargain, but could be overpriced in other areas.

The most important feature of a home tends to be the number of bedrooms and bathrooms. So the more you have, the more it’s valued.

But don't just assume bigger means more expensive! The market value of a property's usable space is typically greater than that of a house with less, because it offers more features and comfort. 

So floor plan matters, not just square footage!

And it might surprise you but size can have less impact on new home pricing than personalization possibilities do. Read on to find out why...

A new home with high-end features can command a premium price. Not all homes come standard with quality materials and luxury fixtures and finishes. Some builders really cut corners to save a few bucks.

Not only can that devalue a new home's worth, but it leads to a lot of headaches, maintenance, and future repairs and upgrades.

And with economic effects ranging from the increasing cost of construction supplies to supply chain difficulties (like those we're currently experiencing), costs will rise across the board simply because it’s more expensive to acquire the materials necessary to build a home.

Plus you have to consider customization. Upgraded options like:

...can all raise the value (and the price) of the home.

Overstreet Builders offers beautifully designed floor plans with tons of personalization options. Explore photos here to see the possibilities!

Finally, the value of a new home will come down to the builder. A homebuilder with a reputation for excellence, superior craftsmanship, and a high-touch customer experience is well worth the cost. You can't put a price on peace of mind, right?

A new home is an investment. And you want to make sure you're getting your money's worth.

Since 1961, Overstreet builders has delivered custom built homes in the greater Chicago area. We are dedicated to quality, integrity, and an unsurpassed experience.

If you're looking for new construction homes in Chicago suburbs that offer beauty, functionality and value, contact us today!