What would you do?

[Mid Night Illusions]

Sorry guys I couldn't really find a "Housing Forum" so Ill try my luck here.

I heard it is cheaper to build a house rather then to just out right buy one is this true?
I asked why doesn't everyone do this then if its cheaper or even the same price you still end up with a "Problem free home."
I was told it has to do with the complications and head aches of Building permits, dealing with hydro, and Water wether it's town or well....
Is this also true?

I am starting to save up for my first home, I currently live in a apartment witch really sucks , but i'm not sure what I should do....

What would you do?
Would you build new?
or
Out right buy an old someone else's problem?

I was offered a piece of land with gravel, it is 1.5 achers for $50, 000.00 would this be a good buy....?

I have many more questions but ill stop right there for now. I hope i'm able to get some feedback on this forum.
Thanks everyone.

Keith

 

[PEW]

Personally, I have never had the urge to own a "new" home, in fact the urge has been to never buy a "new" home. I find it hard to believe, especially in today's market, that you can build new cheaper than an existing home.

Doing your homework will keep you from buying someone else's problems. Always use a home inspector with a good reputation.

As to the price for 1.5 acres, it depends on the location, and the land.

If I were on the market for a used home, I would put the purchase off until later next year, at the earliest. Prices are not going up anytime soon.

 

[Sponsor]

 

[Mid Night Illusions]

I have been watch the prices and it seems like they are going up and up everyday...so im scared if I wait to long then ill have to pay even more for the same home.
I have also heard it is the buyers market right now....
I am no professional, im just saying what I have heard and what I have seen...

 

[Jadnashua]

Until you've lived in a single family home for awhile, it is kind of hard to know what works best for you. So, during that time you are discovering what you really like and hate, it's probably best to pick something you think you'll like, build up some equity (especially if you're handy and can fix it up), then, with a good idea of what you want, think about another house that is closer to your needs and wants. Building your own, whether as the GC, or builder takes a LOT of time to ride herd on all of the subs and schedule. If there's nobody there to make a decision, it can cost big in delays, or redo.

A 'custom' home tends to cost more since people don't know the real cost for a certain feature...yes, if you use sweat equity, you may spend less, but as a result, many people end up spending more than they should for things they may not really want or need, or just because they can. A custom home isn't necessarily built any better, but it might look nicer (for awhile, anyways) when you move in.

If you buy a smaller home in an area with larger ones, it tends to approach the cost of those larger ones eventually. Good luck on whatever you choose.

 

[Cookie]

Keith,

I have 2 sons in their twenties. If they asked me the same question, I would probably tell them to build their own.

I think, since they are young it would be a fun thing for them to do.

1. They could be energy conscious in building it.
2. They could keep the cost down initially, by not doing any bells and whistles; even eliminating until, later things like porches, decks, patios, landscaping.
3. They could finish some of it, like painting, trim work, etc.
4. They could build it to their specs. Thus, no need to negotiate on anything.

I find whenever you buy a house, unless you have alot of luck or alot of money, you will want to or need to fix things, update things. Plus, depending on your area, you can get special financing for building, and also, if you decide to buy an existing house remember that most states have a low interest for first time home buyers.

It also depends how long you think you will remain in the house, and your reason for buying or building. Either way you go, make sure you have some help along the way by someone who knows the ropes. Do alot of comparables with the land or house you are looking to buy.

 

[AZ Contractor]

I was offered a piece of land with gravel, it is 1.5 achers for $50, 000.00 would this be a good buy....?

Location, location, location.

If its in a swamp its a bad buy. If its in New York City then its a great buy. It all depends on the locations. I can't see it from here.

 

[Redwood]

Location, location, location.

If its in a swamp its a bad buy. If its in New York City then its a great buy. It all depends on the locations. I can't see it from here.

I'd rather have spmeone bash my big toe with a 3 lb. hammer once a minute the rest of my life than live in NYC...

Just my opinion...

 

[AZ Contractor]

I'd rather have spmeone bash my big toe with a 3 lb. hammer once a minute the rest of my life than live in NYC...

Just my opinion...

What's so bad about NYC? Ever live there?

Besides, I was using the NYC comparison to emphasize how valuable real estate can be as compared to a swamp, not how livable.

 

[Redwood]

I like walking out my door into my yard and sitting in the shade under my trees in a nice quiet yard. Then I like to walk over to my driveway and get in my car....

Like you said its location location location

My kinda main street...

 

[Alectrician]

I have been watch the prices and it seems like they are going up and up everyday

Not in AZ. The market has taken a dump. Fairly new houses that were selling for 200K a couple years ago are being unloaded for 120K.


IMO, building your own home is NOT for the first time buyer.

If the house is under a decade old, there won't be too many problems. Stay away from ones advertised as "remodeled".

 

[Livin4Real]

Definitely need more info on the piece of property to ballpark it's value. Things to consider for it though: quality of area schools, ISO rating of the closest fire dept. ( I was a firefighter for 7 years, the lower the number the cheaper your insurance). How close EMS services are.Ease of access for said emergency personnel. This is another thing I learned over the years of being a FF'r. There were so many times we couldn't save a house or medical attention was delayed because we couldn't get to the person because of the driveway/location. Also spiral staircases are a b**ch to haul someone down in an emergency fyi, lol. Noone ever thinks about these things until it's too late. Also is it on city water/sewer or well and septic tank? Zoning, alot of homes for sale in the area? Actual buildable area, setback laws to ensure the house you want will fit on the lot. That's alot to digest but should help you out.

The market isn't going up in Indiana either, still falling. I spent $25,000 in the past year on materials alone for a gut and remodel on my home. It was stripped to the studs and all electrical, plumbing was replaced along with wiring it all with media/data lines everywhere, new laminate and ceramic floors, cabinets, appliances, etc and doing all the work myself and it only appraised for $2000 more than what it did before I started!! Same appraiser as the year before.That's how bad the market has gotten in the past two years.

Brian

 

[Bill Arden]

My folks seem to like building houses. I remember how they would build the garage first, move into the garage and then build a house themselves.

Then sell the house and start over.

Personally, I bought a cheep fixer upper ($36,000 for house + 2 acres) 15 years ago and had a large garage built for ~$20,000.

It's a mess, but I've learned what I want to build without spending a fortune.

Houses are like pets and children.
You need a pet(fixer upper) before you are ready to raise children (well built house).

 

[Master Plumber Mark]

buy a REPO

you can get a lot of house right now for nothing......

Just find a Real Estate Agent that deals with repos and forclosures in your
area....

and he will gladly give you a long list to choose from.

then find one with only minor problems that you can handle

or get one with a lot of work needing to be done to it
for almost nothing.....



Basically ....
you will save a bundle and wont end up carrying a grudge
for the rest of your life ...


hateing...that dirty rotten building contractor that
gave you a "good stiff screwing" on your first home...

I know a lot of people that still carry a grudge for
the builder that hung them out to dry..took their money and ran.....

 

[Redwood]

Stay away from ones advertised as "remodeled".

Remodeled is the politically correct version of "Flipped"

 

[D.Smith]

Market is about at the bottom and now is the time to buy used. Invest in it and watch the market.

 

[hj]

home

Would you build new?
or
Out right buy an old someone else's problem?

IF you can find the "right" house for you, buy used. If not, and you can locate a piece of land where you would like to live, build. Just remember, NOBODY has ever built their own home for what they thought it would cost. EVERYONE decides to upgrade or change something along the way and every change costs money. If you put off the amenities such as a porch, when you do decide to do it, it will cost more than if it had been done while the house was being built.

I was offered a piece of land with gravel, it is 1.5 achers for $50, 000.00 would this be a good buy....?

Some Arizona land sells for $200,000 an acre and some sells for $29,000 for 36 acres. Your call.

Here, you cannot live in a garage or mobile home on the job site while you build the house. They have had too many cases where the owners got too comfortable with it and either never finished the house or took years and years to do it.

 

[Cass]

Here is a reason to be very careful buying a used home.

Yesterday went to a call with 3 problems.

Tub spout diverter not working.

Garbage disposal not working.

Water pipe leaks.

House had been inspected by a "very experienced" home inspector.

Retired couple 65-70 years old had been in the home 3 months, this was to be their retirement home on a golf course.

Beautiful home in the $300,000.00 + range, finished basement except laundry area, 10 years old.

G/D bearings shot, G/D needed to be replaced. Tub spout needed replacement, so far small stuff, water line leaks, 5 just in the laundry area, leaking on and off and obvious just by walking in the laundry room and looking up. "Missed" by the home inspector. The leaks extended into the finished area and will require tearing out much of the finished area to replace most of the plumbing...this is a chronic problem in this area and is common... maybe $20,000.00 to replace the plumbing and fix the drywall...maybe more.
The inspector also "missed" 14 double pane windows that had popped and were now cloudy...$12,000.00 for replacements.

Their beautiful home just turned into a nightmare...

 

[Cookie]

Sue, sue, sue

 

[Cass]

They are going to.

 

[PEW]

I must respectfully suggest that anyone thinking that housing has hit the bottom and recommending a buy is either part of the real estate / mortgage business or very far removed from the real world.

Cass,

Those problems don't even come close to plumbing problems on a 2000 plus home community being built in our area. Started a couple of years ago, so far a little over 200 have been built, many of them are for resale, plus many never sold in the first place.

Plumbing problems, like pipes caped in wall - no water on second floor, flooding problems from open pipes in wall, fixtures broken or not connected, and the list goes on. And, the horror stories continue in non plumbing issues.