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blessed92380
Posts: 261
Registered: ‎09-15-2011
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Considering building VS. buying ?? Is it cheaper to build right now?

We are looking to buy a home soon but we have also been thinking of having one built.  My in laws have just over 2 beautiful cleared acres that they will be passing down to us one day in their will etc.  They have told us many times that we can build on the other acre if we would like. Basically my father inlaw would turn over the acre to my husband so we could build.  

 

I am just wondering if it is cheaper to buy a home that is already existing right now.  Also, when I got to the builder websites there is never any pricing so I am wondering how much it cost to build a decent 4br single story home.  Any insight to person experience or knowledge of this would be greatly appreciated!

 

 


Starting Score: EQ 602 TU 624 as of 01/12/12
Current Score: EQ 648 TU 616 EX 649
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blessed92380
Posts: 261
Registered: ‎09-15-2011
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Re: Considering building VS. buying ?? Is it cheaper to build right now?

I just wanted to add that the neighbor to the property in discussion paid 63,000 for their acre in 2006 and then built a very nice house but per the public records it all totalled just under $400,000.  We are not prepared to spend that type of money!


Starting Score: EQ 602 TU 624 as of 01/12/12
Current Score: EQ 648 TU 616 EX 649
Goal Score: anything over 620 I just want a house : ) **** We bought our home 06/01/2012!!!!!


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veracious
Posts: 684
Registered: ‎04-21-2010
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Re: Considering building VS. buying ?? Is it cheaper to build right now?


blessed92380 wrote:

I just wanted to add that the neighbor to the property in discussion paid 63,000 for their acre in 2006 and then built a very nice house but per the public records it all totalled just under $400,000.  We are not prepared to spend that type of money!


Hi, blessed92380
 

Perhaps a good place to start your research would be here---->http://www.homeplans.com/cost-to-build

Also, I'm sure you know that the national builders will build on your land and you could possibly get quotes from them

without signing a contract.  The homeplans website will give you an idea of costs-to-build in your particular location

as well.  There are plenty of other websites similar to the one I mentioned. Again, with some of the national builders,

a "build -on -your-lot"  isn't considered a custom build, but if your lot is in a subdivision or MPC they would have to get

approval from the developer or homeowners association,etc.

 

Hope this helps.

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Valued Contributor
IOBA
Posts: 2,691
Registered: ‎08-13-2009
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Re: Considering building VS. buying ?? Is it cheaper to build right now?

The tax records would reflect the tax assessed value of the home, not that actual cost to build the home.

 

Also, you will probably  be asked to tie in the land and the construction loan together.   DON'T do it!   If you default on the construction/house loan, they take your land too, which there will be equity.

Frequent Contributor
blessed92380
Posts: 261
Registered: ‎09-15-2011
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Re: Considering building VS. buying ?? Is it cheaper to build right now?

@veracious  Thank you for the website, I will definitely take a look at it.  


Starting Score: EQ 602 TU 624 as of 01/12/12
Current Score: EQ 648 TU 616 EX 649
Goal Score: anything over 620 I just want a house : ) **** We bought our home 06/01/2012!!!!!


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blessed92380
Posts: 261
Registered: ‎09-15-2011
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Re: Considering building VS. buying ?? Is it cheaper to build right now?

I did not get the information from the property appraiser website.  The information is from actual bank documents.


Starting Score: EQ 602 TU 624 as of 01/12/12
Current Score: EQ 648 TU 616 EX 649
Goal Score: anything over 620 I just want a house : ) **** We bought our home 06/01/2012!!!!!


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Tooliebell
Posts: 395
Registered: ‎08-11-2010
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Re: Considering building VS. buying ?? Is it cheaper to build right now?

We were going to build a home.  We had plans drawn up and bought the zoning permit to build on the 2.75 acres we currently own that had a mobile home on it.  We had a local builder, a good builder, estimate the home. It was 1738 square feet on the main floor with a 2 car garage, and a daylight basement that was about 1700 square feet that would be finished with 2 bedrooms and a bathroom.  It would have been a 4 bedroom 2.5 bath home.  No fancy roof lines, a basic box style ranch home.  The cost to build was $170,000!  It wasn't a basic package for the interior, we wanted good windows and doors and had a nice allowance for a kitchen. 

 

We did not build our own home.  We found a brick home 2 miles north of where we lived that has 3104 square feet between main and basement levels, a 3 car garage, 10 acres and 2 barns for $150,000.  That was a better value in our opinion.  Now it isn't brand new..we are its 3 owners, but it was taken care of very very well. 

 

This is my experience in rural Michigan.  I think your best bet, is to find a plan you would like, and ask a reputable builder in your area to estimate the cost.  Then look at homes for sale in your area and compare.  I know our bank told us, the construction loan is a hard loan right now because you can buy houses much cheaper than you can build them right now. 

 

Good Luck!

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StartingOver10
Posts: 4,194
Registered: ‎03-06-2010
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Re: Considering building VS. buying ?? Is it cheaper to build right now?

Tooliebell hit the nail on the head.

 

The cost to build is generally higher in this market, but it is not possible to know which is better for you unless you do the work to compare your particular market place with an actual bid from one or more builders in your area for the house you want to build.

 

Here in S Fl there is no question that buying an existing property is much, much less expensive than buying new. In addition to that, the existing property also has upgrades and other basics like window treatments, water softeners (wjhere applicable) etc.  In our area you can buy bank owned properties and short sales for substantially less than new construction.

Frequent Contributor
blessed92380
Posts: 261
Registered: ‎09-15-2011
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Re: Considering building VS. buying ?? Is it cheaper to build right now?

Thank you so very much for your input.  I figured it was probably cheaper to buy right now but wanted to ask.  I think what we will do is buy else where and build one day once we have equity and the entire property is ours.  It makes more sense that way since we would rather live up on the hill behind the oaks tress where his parents house is.  Their house was not built well (that is an understatement) at all and so we plan on knocking it down and rebuilding one day.  If we earn equity in the house we buy we will be able to use it towards building a new home down the line. I thought it would be nice to live close but not in the same house because they are getting older and have no desire to be in a nursing home.  I will be taking care of them one day, but I guess if we buy a house really close to them that will work okay as well.  


Starting Score: EQ 602 TU 624 as of 01/12/12
Current Score: EQ 648 TU 616 EX 649
Goal Score: anything over 620 I just want a house : ) **** We bought our home 06/01/2012!!!!!


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