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Would a Bermed Home Cost More? or Less?

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Terrel L. Shields

Elite Member
Joined
May 2, 2002
Professional Status
Certified General Appraiser
State
Arkansas
...than conventional hillside construction.

There is more dirt work usually but less exterior finish and the heating and cooling can be sized smaller (i presume.)

Please...I don't care about what FHA, fannie or freddy would do...This is on a large parcel.
 
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I have seen far too many of these with water penetration issues where the berm is located.
 
Here in Missouri - they are called Earth Contact homes and they are quite common. Yes - the cost new is somewhat lower due to the large amts of Concrete versus Wood. One thing that you must account for is access. Just last year in a county north of me a Christmas tree caught on fire near the front door and the family had a tough time getting out of the home (no attached garage).

Cost wise - our market is showing a 15-20% reduction in initial construction cost due to reduction in Labor and Materials. Another thing to take into account is flooring. If the home owner only puts carpet and pad on the concrete slab - expect them to get to know their Podiatist on a first name basis...
 
Future problems aren't what I was worrying about, MU Tiger answered my question. I am trying to calculate a RCN. I have one as subject and 1 as comp. I am trying to extract some info from the comp. Looking like I've got about 40% functional if my RCN numbers are reasonably correct.

I finally went to an old copy of Boeckh, which is by far and away the best cost book ever devised in my opinion and beat M & S all hollow...as well as being cheaper. But if you can't beat 'em and don't wanna join 'em, then buy them out...which is what M & S did and screwed Boeckh up forever for a lot of us very satisfied users.

E. H. Boeckh, comparing a conventional house on modest slope v. RCN of Earth Sheltered supports your opinion that they are cheaper. Roughly 10-15% cheaper. And yes the floors here are vinyl over concrete...
 
That would make a nifty silage bunker.
 
In our area, in addition to the functionality, (access in and out) you also have marketability. We have a few that are built within your typical residential neighborhood. They lack the overall appeal of the typical home. Price per sq ft was about 25% below the market on the last ones that sold.
 
These types of homes are cheaper to construct for the reasons noted earlier; lots of poured concrete with no exterior finishing. There's usually significant functional obsolescence also. We have a few out in my neck of the woods, and sales of these properties were were easy to find. Just look for the sales that seem to be unreasonably low for the neighborhood, and there's a chance it's one of these places.
 
I have seen far too many of these with water penetration issues where the berm is located.

Proper water proofing, (and not a home owner project) can alleviate this; there have been significant improvements. BUT your point is well taken for an existing home, particularly if it was built to "save money"!

I just like to share that this is an area that materials have drastically improved and that people should do their homework if building, even when using a builder. This is an "ounce of prevention" issue.

Bob in CO
 
In our area, in addition to the functionality, (access in and out) you also have marketability. We have a few that are built within your typical residential neighborhood. They lack the overall appeal of the typical home. Price per sq ft was about 25% below the market on the last ones that sold.
The reason I ask is to reassure myself that I have the RCN correct. Without that, then my calculation of functionality/marketability (obsolescence) on the only real comp I have, will be flawed from the get go.
 
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