FHB Logo Facebook LinkedIn Email Pinterest Twitter X Instagram Tiktok YouTube Plus Icon Close Icon Navigation Search Icon Navigation Search Icon Arrow Down Icon Video Guide Icon Article Guide Icon Modal Close Icon Guide Search Icon Skip to content
Subscribe
Log In
  • How-To
  • Design
  • Tools & Materials
  • Restoration
  • Videos
  • Blogs
  • Forum
  • Magazine
  • Members
  • FHB House
  • Podcast
Log In

Discussion Forum

Discussion Forum

Construction Cost Differential???

Josephtwomoons | Posted in General Discussion on May 18, 2009 05:36am

After fifteen years of forking over the check for property taxes without protest (or careful examination of the bill), this is the end of the line for Mr. Nice Guy.  I’m immersing myself in the tax code, local building costs, comparable sales figures (not many to use) photos, diagrams, intimidation psychology – and I’m having one of my two suits cleaned.  My protest will be based upon 2 factors, the pertinent one here being “unequal appraised value”.

Enough!  Here’s my fairly basic question. Assume two houses side by side of equal square footage, equal numbers of baths and bedrooms and equal construction material – everything equal, except one is a one story dwelling and the other is a full two story.

Leaving further detail aside –

What is the cost to build differential between the two structures – ball park?

Thanks in advance for your knowledge and response.   

 

 

Reply
  • X
  • facebook
  • linkedin
  • pinterest
  • email
  • add to favorites Log in or Sign up to save your favorite articles

Replies

  1. und76xx | May 18, 2009 05:54pm | #1

    Joseph: I know little to nothing about the costs of construction. So I cannot answer your primary message. I do know, however, some about the appeal process to lower your homestead property tax liability. Good for you reading the fine print. And you also deserve an 'atta-boy' for your research into similar property and its individual tax structure.

    However! Things I discovered in a very similar pursuit that might help you in your prep before the tax tribunal:

    1. In my state there is something called a 'Hedley' Ammendment. It limits the governments ability to raise your taxes. I believe it limits our state tax body to a 1% or so increase/year. What I did not know it works in both directions. It also limits any decrease granted by the same percentage. So each year you must file your application to appeal.
    2. Comp properties includes homes sold in my area that were rock bottom prices because they suffered foreclosure actions. Two homes were sold at a fire sale but were included in my comps for mortgage purposes only. They were not, and according to the tax folks, could not be included in the value computations for the value of my home. Different considerations for different reasons I was told.

    Might want to clean both suits? Good luck.

    Mike

    1. cargin | May 18, 2009 08:44pm | #5

      und

      It limits the governments ability to raise your taxes.

      In Iowa we have state mandated property reductions.

      So the assessors are just busy upping the valuation on the homes.

      My house is assessed at 138K and I doubt I could sell it for 100K.

      LOL

      Rich

  2. frammer52 | May 18, 2009 07:01pm | #2

    What is the cost to build differential between the two structures - ball park?>>>>>>>>>>>>>>...

    There are a lot of dependent factors.  Like, with or without basement, labor costs where you live.

    I can tell you from personal experience it is more expensive to build a ranch, but actual costs.hmmmmmmmm.



    Edited 5/18/2009 12:01 pm ET by frammer52

    1. MikeSmith | May 18, 2009 07:46pm | #3

      joe...  cost to build has little to do with appraised value

      it's the estimated  sales value reduced to a specific time

      what you need are comparable sales that support your caseMike Hussein Smith Rhode Island : Design / Build / Repair / Restore

  3. User avater
    Dinosaur | May 18, 2009 08:12pm | #4

    Ditto to what Mike said; in addition, there is the matter of the surrounding houses. When one house in a neighbourhood is upgraded substantially--say, a big addition or a whole second storey--that boosts the value of that house and of the houses near it.

    The assessors figure this way: A potential buyer doesn't look just at the house he's buying; he looks at the whole neighbourhood. He will pay less for a house next door to a 'chateau Redneck' with a couple of junk cars in the weeds and the paint peeling off the siding, than he will for one next door to a nice, expensive custom house with a well-barbered fairway and a Beemer in the drive.

    When I rebuilt my place in '95, I expected my own taxes to rise substantially as I had septupled the market value of the house and property. And I was right; they did go up. But the neighbours on both sides of me mentioned later that their evaluations had been upped, too.

    Dinosaur

    How now, Mighty Sauron, that thou art not brought
    low by this? For thine evil pales before that which
    foolish men call Justice....

    1. Josephtwomoons | May 18, 2009 09:09pm | #6

      Thanks Mike und76xx for your encouragement.  I am trying to get loaded for big animals.

      Thanks Dino and Mike Smith.  I do understand what you say about the importance of sales-based, comparable market values.  The property tax code where I live allows for appraised valuations based on sales, income, cost and "uniform and equal".  That last approach to valuation comes into play when there an insufficient number of like properties having been sold at or near to the time of appraisal valuations being made.  That's the case here.

      So as far a more than you wanted to know -

      I have a favorable situation, in that I live on a "loop", on which 15 houses were constructed between 1977 and 1981, all of them with stone veneer exterior, vastly different floor plans, similar quality of construction materials and similar states of maintenance.  All the lots are appraised at the identically same value, although all but one are somewhat larger than mine, and half of those are bounded on the backside by a year-round, running stream.

      There is a 15% differential in square footage appraised values between my house and 13 of the other houses on my loopy neighborhood.  That percentage is significant because appraised value protests based on "uniform and equal" require a 10% per square foot disparity, at minimum.

      My reason for asking about the one and two-story construction cost differential arises from the fact that only 5 of the 13 houses I plan to use as comparable properties are of single story construction.

      I mainly need ammo, in case we shape-shift in approaches to valuation during my trial before the arbitration board elders.  I feel better in knowing at least as much as what I'm yammering about as that other guy on the other side of the table.

      Thanks for your welcome replies that I regard highly.

      1. DanH | May 18, 2009 09:19pm | #8

        When calculating the 15% number did you first subtract off the lot values?
        As I stood before the gates I realized that I never want to be as certain about anything as were the people who built this place. --Rabbi Sheila Peltz, on her visit to Auschwitz

      2. MikeSmith | May 18, 2009 09:34pm | #9

        joe

         

        here  are  the  factors  i  use  in  helping  clients  evaluate  different  scenarios:  i  reduce  all  the  sf  in  a residence  to  ESF  (Equivelent  Square  Foot )  so  I  can  compare one story,  two story,  garages  &porches  &  decks  and  full  foundations.  MY  ratios  are  based  on  30  years  of  estimating  and  guessing.

        ie ...  if  they  are  considering  slab-on-grade  vs.  full  foundation

        or  single  story  vs.  two  story

         

         or  adding  garages    ,   decks  &  porches

         

        if  we  assume  that  a  single  strory  house  has  a foundation and  a  roof,  and  that  most  houses  have  kitchens  and  a  bath  on  the first  floor

        1st  floor  construction   =  1.00

        so  a  sf  of  living  space  on  a 1  story  house  will cost ( 1.00  x  cost  per  SF )

        2d  floor  const   =   0.5

        garages  ,  screened  porch  and  2d  floor over  garages  cost 0.25

        and  decks  cost   0.15

        also:  if  you  have  a full  basement  vs.  a  slab-on-grade 

        the  full  basement  is  0.15

         

        to  use  an example

        a  30x 40 ranch  with  a  slab-on -grade  would  have  1200  sf Living  space

        assume   $200/ sf  =  (1200 x $200 =  $240,000

        compare that  to  a  2-story  28x36

        w/  a  2d  floor  of  20x32  (28x36  = 1008 sf  &  20x32 = 640 sf )

        so   (1008 x 1.00  +  640 x .5 )  =   1328  ESF

         

        1328 ESF  x  $200/sf  =   $265,000,  but   we  are  comparing  a  1200  sf  house  against  a  1648  sf  house.

         

        The   ratios  work  no  matter   what  you   plug in for a  SF/ cost   to  build.  They  are  my  ratios and  you  will get  lots of arguements about  the  percentages.  Keep in  mind  it is used  as a tool  to dmeonstrate to my  clients  what   happens  when  they  change  things  and  why  2-story  yields  more  living  space   for  the  same  amount  of  money.

         

        I developed  it  years  ago  when  I was  trying  to make  sense  of   what  people  were  using  to  come  up  with SF/ Cost  to  build.

        It  yields  a  more  valid   number  to  compare  one  type  of  house  to another.Mike Hussein Smith Rhode Island : Design / Build / Repair / Restore

      3. migraine | May 18, 2009 11:54pm | #12

        As everyone else has psted, it all depends on apples to apples.  Larger lots should, in theory apraise for more, but the reverse can be tru.  same as square footage, but as a house gets bigger, the price per square foot will/can be reduced.  Same as 1 vs 2 story.  Number of beds and baths will change the values.

        As for dealing with the local entities that be, They are only going to look when it becomes a case by case situation.  If they do it as a group, the estimates are averages of everything, unless they hae some real fancy computer programs.  Even in this case, it depnds on how they address the perameters in the program.

        In Ca, we had ours automatically reduce from $44k to $400k by the county.  We we appealed it, they lowered it alittle more.  We we sent in the comps for our aera, we had the exact same home selling for less than $340k.  We were required to give 3 comps in a 3 month period.  They would not take those as a total basis.  They came up with $356k and there nothing to base this on, but that was their final offer.  

        The real problem is that the differences are then compapunded yearf by year.  So at the difference of our home may have been $14k,  The additional taxes would only be around $180.  But that is for only one year.  Multiply that be 30 yeras and it adds up

        Hardest thing for me to accept is that 6 years ago, the property walue was alot lower and in those few years they start crying that they don't have enough money.  Since when does there budget go up in 6 years 50%, like our property taxes could, based on sales?(I know that this is a totally accurate statement, but you get my point)

        Good luck, or maybe it sould be God luck, you will need it.

  4. DanH | May 18, 2009 09:17pm | #7

    Of course you can't directly compare a single story house with a 2 story. The 2-story consumes less lot space and is therefore apt to be on a smaller lot. On the same sized lot more space is left for lawn, garage, gardens, etc.

    The 2-story will lose square footage to a stairway that isn't lost in a single-story over slab/crawl. (And arguably a basement stair takes less square footage than a stairway to a 2nd story.)

    There are economies in the 2-story relative to foundation costs and mechanicals. OTOH, HVAC tends to get more complicated (or less satisfactory). The economies of construction will affect market prices (and, of course, tax assessment is most validly based on market prices).

    As I stood before the gates I realized that I never want to be as certain about anything as were the people who built this place. --Rabbi Sheila Peltz, on her visit to Auschwitz
  5. davidmeiland | May 18, 2009 09:39pm | #10

    The tax assessor here is a casual acquaintance and we talked once this issue. The easiest way in this jurisdiction to get your tax assessment reduced is to bring a current appraisal to them. Just so happens I have an appraisal from two weeks ago and it is for less than my current assessed value. I'll be dropping off a copy this week for their review.

    To answer your question, I would figure maybe ~5% more to build the two story house. To fully compare the two properties, you need to look at things like lot size, view, privacy, etc. The assessor in your area could probably detail all of the things they look at.

    1. Josephtwomoons | May 18, 2009 11:07pm | #11

      Mike Smith and David,

      Thank you.  You have both provided the essence of what I was trying to know.  A 5% or 10% greater differential per square foot cost for a two story house will work for me.   The two level structures on my "loop" are all appraised at a much lower square foot valuation than the one story house that I own.  Knowing that, I'll run some hypothetical construction cost numbers in order to buttress the validity of my argument - ball park speaking.

      DanH,

      yes I did exclude the appraised value of the lots.   I'm becoming wary as I go on in my understanding of how valuations are arrived at, in my point-counter point research of how they are done.   Appraisal is not my background, and I know about the inexatude of the process of appraising property for tax purposes, but I way prefer some more pure science to the way that tax appraisals are made.  On the other side, it is  impossible to factor out the human factor.

       

       

Log in or create an account to post a comment.

Sign up Log in

Become a member and get full access to FineHomebuilding.com

Video Shorts

Categories

  • Business
  • Code Questions
  • Construction Techniques
  • Energy, Heating & Insulation
  • General Discussion
  • Help/Work Wanted
  • Photo Gallery
  • Reader Classified
  • Tools for Home Building

Discussion Forum

Recent Posts and Replies

  • |
  • |
  • |
  • |
  • |
  • |
View More Create Post

Up Next

Video Shorts

Featured Story

Picture-Perfect Pergola

Built from locally sawn hemlock, this functional outdoor feature uses structural screws and metal connectors for fast, sturdy construction.

Featured Video

Micro-Adjust Deck-Baluster Spacing for an Eye-Deceiving Layout

No math, no measuring—just a simple jig made from an elastic band is all you need to lay out a good-looking deck railing.

Related Stories

  • Podcast Episode 692: Introduction to Trade Work, Embodied Carbon, and Envelope Improvements
  • FHB Podcast Segment: Embodied Greenhouse Gas Emissions and the Building Codes
  • Old Boots Learn New Tricks
  • Install Denim Insulation Like a Pro

Highlights

Fine Homebuilding All Access
Fine Homebuilding Podcast
Tool Tech
Plus, get an extra 20% off with code GIFT20

"I have learned so much thanks to the searchable articles on the FHB website. I can confidently say that I expect to be a life-long subscriber." - M.K.

Get home building tips, offers, and expert advice in your inbox

Signing you up...

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.
See all newsletters
See all newsletters

Fine Homebuilding Magazine

  • Issue 332 - July 2025
    • Custom Built-ins With Job-Site Tools
    • Fight House Fires Through Design
    • Making the Move to Multifamily
  • Issue 331 - June 2025
    • A More Resilient Roof
    • Tool Test: You Need a Drywall Sander
    • Ducted vs. Ductless Heat Pumps
  • Issue 330 - April/May 2025
    • Deck Details for Durability
    • FAQs on HPWHs
    • 10 Tips for a Long-Lasting Paint Job
  • Issue 329 - Feb/Mar 2025
    • Smart Foundation for a Small Addition
    • A Kominka Comes West
    • Making Small Kitchens Work
  • Issue 328 - Dec/Jan 2025
    • How a Pro Replaces Columns
    • Passive House 3.0
    • Tool Test: Compact Line Lasers

Fine Home Building

Newsletter Sign-up

  • Fine Homebuilding

    Home building tips, offers, and expert advice in your inbox.

  • Green Building Advisor

    Building science and energy efficiency advice, plus special offers, in your inbox.

  • Old House Journal

    Repair, renovation, and restoration tips, plus special offers, in your inbox.

Signing you up...

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.
See all newsletters

Follow

  • Fine Homebuilding

    Dig into cutting-edge approaches and decades of proven solutions with total access to our experts and tradespeople.

    Start Free Trial Now
    • Facebook
    • Instagram
    • X
    • LinkedIn
  • GBA Prime

    Get instant access to the latest developments in green building, research, and reports from the field.

    Start Free Trial Now
    • Facebook
    • YouTube
  • Old House Journal

    Learn how to restore, repair, update, and decorate your home.

    Subscribe Now
    • Facebook
    • Instagram
    • X
  • Fine Homebuilding

    Dig into cutting-edge approaches and decades of proven solutions with total access to our experts and tradespeople.

    Start Free Trial Now
    • Facebook
    • Instagram
    • X
    • LinkedIn
  • GBA Prime

    Get instant access to the latest developments in green building, research, and reports from the field.

    Start Free Trial Now
    • Facebook
    • YouTube
  • Old House Journal

    Learn how to restore, repair, update, and decorate your home.

    Subscribe Now
    • Facebook
    • Instagram
    • X

Membership & Magazine

  • Online Archive
  • Start Free Trial
  • Magazine Subscription
  • Magazine Renewal
  • Gift a Subscription
  • Customer Support
  • Privacy Preferences
  • About
  • Contact
  • Advertise
  • Careers
  • Terms of Use
  • Site Map
  • Do not sell or share my information
  • Privacy Policy
  • Accessibility
  • California Privacy Rights

© 2025 Active Interest Media. All rights reserved.

Fine Homebuilding receives a commission for items purchased through links on this site, including Amazon Associates and other affiliate advertising programs.

  • Home Group
  • Antique Trader
  • Arts & Crafts Homes
  • Bank Note Reporter
  • Cabin Life
  • Cuisine at Home
  • Fine Gardening
  • Fine Woodworking
  • Green Building Advisor
  • Garden Gate
  • Horticulture
  • Keep Craft Alive
  • Log Home Living
  • Military Trader/Vehicles
  • Numismatic News
  • Numismaster
  • Old Cars Weekly
  • Old House Journal
  • Period Homes
  • Popular Woodworking
  • Script
  • ShopNotes
  • Sports Collectors Digest
  • Threads
  • Timber Home Living
  • Traditional Building
  • Woodsmith
  • World Coin News
  • Writer's Digest
Active Interest Media logo
X
X
This is a dialog window which overlays the main content of the page. The modal window is a 'site map' of the most critical areas of the site. Pressing the Escape (ESC) button will close the modal and bring you back to where you were on the page.

Main Menu

  • How-To
  • Design
  • Tools & Materials
  • Video
  • Blogs
  • Forum
  • Project Guides
  • Reader Projects
  • Magazine
  • Members
  • FHB House

Podcasts

  • FHB Podcast
  • ProTalk

Webinars

  • Upcoming and On-Demand

Podcasts

  • FHB Podcast
  • ProTalk

Webinars

  • Upcoming and On-Demand

Popular Topics

  • Kitchens
  • Business
  • Bedrooms
  • Roofs
  • Architecture and Design
  • Green Building
  • Decks
  • Framing
  • Safety
  • Remodeling
  • Bathrooms
  • Windows
  • Tilework
  • Ceilings
  • HVAC

Magazine

  • Current Issue
  • Past Issues
  • Magazine Index
  • Subscribe
  • Online Archive
  • Author Guidelines

All Access

  • Member Home
  • Start Free Trial
  • Gift Membership

Online Learning

  • Courses
  • Project Guides
  • Reader Projects
  • Podcast

More

  • FHB Ambassadors
  • FHB House
  • Customer Support

Account

  • Log In
  • Join

Newsletter

Get home building tips, offers, and expert advice in your inbox

Signing you up...

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.
See all newsletters
See all newsletters

Follow

  • X
  • YouTube
  • instagram
  • facebook
  • pinterest
  • Tiktok

Join All Access

Become a member and get instant access to thousands of videos, how-tos, tool reviews, and design features.

Start Your Free Trial

Subscribe

FHB Magazine

Start your subscription today and save up to 70%

Subscribe

Enjoy unlimited access to Fine Homebuilding. Join Now

Already a member? Log in

We hope you’ve enjoyed your free articles. To keep reading, become a member today.

Get complete site access to expert advice, how-to videos, Code Check, and more, plus the print magazine.

Start your FREE trial

Already a member? Log in

Privacy Policy Update

We use cookies, pixels, script and other tracking technologies to analyze and improve our service, to improve and personalize content, and for advertising to you. We also share information about your use of our site with third-party social media, advertising and analytics partners. You can view our Privacy Policy here and our Terms of Use here.

Cookies

Analytics

These cookies help us track site metrics to improve our sites and provide a better user experience.

Advertising/Social Media

These cookies are used to serve advertisements aligned with your interests.

Essential

These cookies are required to provide basic functions like page navigation and access to secure areas of the website.

Delete My Data

Delete all cookies and associated data