Building a house vs buying

[NoOne]

Pros/Cons?

We will be ready to move in 6mo, post divorce, blah blah blah.

Dollar for dollar how much more is building? Figure 2 acres from what I can see about 8 miles north of the area we frequent with easy access is about 100K.

This house came up and it is exactly what we are looking for but not ready to move yet:

https://www.zillow.com/homedetails/1...83451787_zpid/

We would like to build something similar, out of 18 months of getting listings this was the first we thought we would be interested in. Came out of a custom home that we completely redid.

If we were to build we'd start soon, at least buy the land but trying to figure out what is worth the hassle and what is not.

We like the idea of custom but we also don't want to invest 18-24 months. We know exactly what we like and want.

[Onebadcad]

My take:

1) You can usually save money on an existing home, due to seller has to sell
2) You pay full price for new construction, as no builder offers discounts, and both labor and material costs keep increasing
3) You can find a home and move in within 30-45 days
4) A new construction may take 12+ months
5) BUT, when someone is hellbent on having a new home, there is no other consideration

I have bought new, worked well, worth the 9 month wait, owned it for 7 years, sold as needed much more space.
The home we live in now was built in 1997, we bought in 2000, IMO as good as new, and in a neighborhood that hit all points.

GOOD LUCK!!

[GTOguy]

Depends on your age and motivation.

I have friends who built their own in their 30's and are still enjoying them 30 years later. My grandfather built his own in 1957 and enjoyed it for 20 years. A real gem of a place.

I currently have a friend who bought land 8 years ago out of state and he hasn't got to the slab yet. He's 66 going on 67 with two teenage boys and a slightly younger wife. And a procrastinator.

My bet is the house never gets built in his lifetime and the family will have to deal with the mess after he's gone.

So it depends on your age and motivation.

I have observed that people that act like they're never going to die and are active tend to live about 10 years longer than those that start to wind it down and downsize as they get older. I think the activity keeps them engaged and feeling vital. So, are you in a hurry, are you young, old, etc.?
At my age, 63 this month, I would buy a turn-key place.

[Steve_R]

Originally Posted by NoOne

We like the idea of custom but we also don't want to invest 18-24 months. We know exactly what we like and want.

If you haven't bought the land, don't have a design, haven't applied for permits, don't have a contractor, etc. you're likely looking at 18 months minimum, if not longer. My experience is that it ALWAYS costs more than your original estimate, and it ALWAYS takes longer than you think it will.

Good luck.

[LATB]

Originally Posted by NoOne

Pros/Cons?

We will be ready to move in 6mo, post divorce, blah blah blah.

Dollar for dollar how much more is building? Figure 2 acres from what I can see about 8 miles north of the area we frequent with easy access is about 100K.

This house came up and it is exactly what we are looking for but not ready to move yet:

https://www.zillow.com/homedetails/1...83451787_zpid/

We would like to build something similar, out of 18 months of getting listings this was the first we thought we would be interested in. Came out of a custom home that we completely redid.

If we were to build we'd start soon, at least buy the land but trying to figure out what is worth the hassle and what is not.

We like the idea of custom but we also don't want to invest 18-24 months. We know exactly what we like and want.

It is a long and arduous journey. If you have not done it can break you.
If you are not prepared to invest a couple years of your life you should buy an existing home.

[NEED-A-VETTE]

Originally Posted by NoOne

Pros/Cons?

We will be ready to move in 6mo, post divorce, blah blah blah.

Dollar for dollar how much more is building? Figure 2 acres from what I can see about 8 miles north of the area we frequent with easy access is about 100K.

This house came up and it is exactly what we are looking for but not ready to move yet:

https://www.zillow.com/homedetails/1...83451787_zpid/

We would like to build something similar, out of 18 months of getting listings this was the first we thought we would be interested in. Came out of a custom home that we completely redid.

If we were to build we'd start soon, at least buy the land but trying to figure out what is worth the hassle and what is not.

We like the idea of custom but we also don't want to invest 18-24 months. We know exactly what we like and want.

Over 5,000 sq ft for $715k?

Maybe it’s time to look at houses in Michigan.

[Steve_R]

Originally Posted by NEED-A-VETTE

Over 5,000 sq ft for $715k?

Maybe it’s time to look at houses in Michigan.

No kidding! That's at least $3M here - but then it's in Michigan.

[LATB]

Originally Posted by Steve_R

If you haven't bought the land, don't have a design, haven't applied for permits, don't have a contractor, etc. you're likely looking at 18 months minimum, if not longer. My general rule of thumb is that is ALWAYS costs more than your original estimate, and it ALWAYS takes longer than you think it will.

Good luck.

Correct.
We found the property I’m currently developing in the summer of 2022. Closed on the dirt in September 2022. I just poured the slab last week. I’m looking at another year minimum to build the house and move in.

[slewfoot]

Never built but just bought. Never really picked up on some things until this last one. Not sure if we'll buy again but if we do, I will pay more attention to what is facing where.

The master bedroom faces west and is also above the garage. This is great during the summer months. Adding insult is the HVAC floor vent is right by the damn window.

During the fall, winter and spring, its pretty good but the summer months, hot as hell.

[cptlo306]

Originally Posted by Steve_R

If you haven't bought the land, don't have a design, haven't applied for permits, don't have a contractor, etc. you're likely looking at 18 months minimum, if not longer. My experience is that it ALWAYS costs more than your original estimate, and it ALWAYS takes longer than you think it will.

Good luck.

This!

I had my house built and just moved in last May. Were it not for building on existing family land (land I grew up on), buying an existing house would have been so much easier, cheaper, and way less stressful.

[Onebadcad]

Originally Posted by Steve_R

No kidding! That's at least $3M here - but then it's in Michigan.

The Island / Fern Beach will run you $8+M for 5,000 livsqft on the ocean.
Probably $4+M for a turnkey on a land lot.
1/2-acre lots are over $1M--not waterfront or oceanfront.
$3.5M for this oceanfront lot, https://www.realtor.com/realestatean...=srp-list-card

No ACA people in your town.

[Steve_R]

Originally Posted by Onebadcad

The Island / Fern Beach will run you $8+M for 5,000 livsqft on the ocean.
Probably $4+M for a turnkey on a land lot.
1/2-acre lots are over $1M--not waterfront or oceanfront.
$3.5M for this oceanfront lot, https://www.realtor.com/realestatean...=srp-list-card

No ACA people in your town.

All true. That house on the beach would be $8M+. Middle of the island $3-4M, and then price goes back up if it's on the water on the river.

That lot is a quick bike ride or walk from our house. We won't be buying it.

[GTOguy]

Originally Posted by LATB

Correct.
We found the property I’m currently developing in the summer of 2022. Closed on the dirt in September 2022. I just poured the slab last week. I’m looking at another year minimum to build the house and move in.

And you've been doing this as a pro for literally about 50 years. And are much more punctual and motivated than most.

The stuff I've seen in the past 30+ years here, builders don't move too fast, and where I am, permits can take so long that some actually expire while waiting on others. And the process has to be started all over again.

I think the permitting took about 5 or 6 years on my buddy's shop.

[dvarapala]

Originally Posted by NEED-A-VETTE

Over 5,000 sq ft for $715k?

Maybe it’s time to look at houses in Michigan.

There's a very good reason that houses are cheap there.

[MidLifeinMI]

Looked at the Zillow listing; great looking house but too close to M-53, would be noisy with traffic. I know a guy who has a place in Washington Twp (near Stony Creek) who will probably be selling in about 12-18 months (he's building a place in FL, but hasn't even bought a lot yet). It's a bit smaller than the Zillow house, but everything in it is high-end (3-car garage, 10 ft ceilings, etc; backs up to a golf course, too). PM if it sounds like something you'd be interested in seeing.

[KenHorse]

Bought riverfront property with a double-wide on it (had private dock too). Gave the double-wide away to get rid of it and built our own 2700 sq' ft. home on it. That is was in 2001.

The view out our back sliding glass doors:

Not bad for $225K

[TheHammer]

Originally Posted by KenHorse

Bought riverfront property with a double-wide on it (had private dock too). Gave the double-wide away to get rid of it and built our own 2700 sq' ft. home on it. That is was in 2001.

The view out our back sliding glass doors:

Not bad for $225K

wavy deck

[RMVette]

Nice home with a pool that you showed, my wife would love it!

Personally I'd opt for one built, mainly due to it having an established yard and trees. Around here they clear cut the lot and plant back 6' trees that offer no shade or character.

Granted, that an existing home isn't your design or may have some maintenance issues but an existing home is move in ready. I built one home in '96 and it was a long drawn out process.

That's my $.02 worth.

[KenHorse]

Originally Posted by TheHammer

wavy deck

Old pic before some boards were replaced

[ZipZap]

We've built twice. Both times were after extensive searches did not produce an existing home that met location and design needs.

Bottom line is that if you find the home you really want in an area in which you want to live, then seriously consider existing. Building is long, and frequently frustrating, especially if you are wanting, like me, to be in on all decisions. You will absolutely spend more money building, but you could also use that extra money to get an existing home "perfect".

Good Luck.