Price is always a factor or concern when buying a house, whether it is a new home or a used home. There are many other factors that will impact a home buying decision as well, but price and location are the two most influencing factors in the decision making process. The reality of today’s economic climate has provided an even heightened focus on price. In new home construction, the builder knows the costs of the materials, the labor involved in building the house, costs for servicing the home after the homeowners move in, and the costs of operating the business. That is why home prices in new construction are generally referred to as a “cost based” prices. Nobody said it better than author John Ruskin (1819-1900) when he shared his insight on prices.