The contractor did the estimate. Since it was from ground up and they've done this before, they have an idea of costs.
Now, some of their estimates were off some. For instance, the termite pre treatment went up significantly.
The cement contractor made some errors that will ultimately cost me some. Some of the errors are not really wrong, but will cost me money to deal with. They got the foundation a little too high and a lot more dirt will be needed for grading.
As for the land, no one can really afford to build here and if they can they build in the snob section of town.
The city itself built an addition for ~$85K a lot and generally gives them away if you'll build a $200K house on the lot.
The city commissioners have been on a terror for decades trying to coerce people to keep their houses in livable condition or they tear them down.
Here in Kansas they levy the tear down charges as a property tax, which the land owner just walks away from since they can't put anything on the land. It ends up at a tax sale where I pick them up for $1 per lot, plus $49 to register them.
I had wanted to build some domes on them, but the city created an ordinance that essentially keeps me from building them. These are neat little houses. Take a look.
www.domeliving.com
www.innplacebrenham.com