Cost difference between buying and building a house? | TigerDroppings.com

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TDawg1313
Washington Fan
WA
Member since Jul 2009
8945 posts

Cost difference between buying and building a house?


All things being equal, what's difference in cost between buying a house and hiring a company to build a house for you?






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91TIGER
LSU Fan
Lafayette
Member since Aug 2006
6215 posts

re: Cost difference between buying and building a house?


Go to the Money Board you will get a real answer there, of course it might not be for 2 days.





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sonusfaber
New Orleans Pelicans Fan
Chattanooga, TN
Member since Apr 2010
2408 posts

re: Cost difference between buying and building a house?


quote:

All things being equal


You answered right there






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novabill
LSU Fan
Crossville, TN
Member since Sep 2005
5428 posts

re: Cost difference between buying and building a house?


If you have something specific you are after and are willing to pay to get it, then it may cost you the same as building you what you want.

However, with the market the way it is, you may be able to benefit from finding something that is below market value and save some $$$






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TDawg1313
Washington Fan
WA
Member since Jul 2009
8945 posts

re: Cost difference between buying and building a house?


I guess I should have been more detailed. The exact same land, house, etc. but House 1 you just buy through a realtor and House 2 you buy the land, then hire a company to build it for you.

And I couldn't figure out which board to post this on. If it belongs on the Money board, feel free to move it there.






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VABuckeye
Ohio State Fan
Oak Hill, VA
Member since Dec 2007
10498 posts

re: Cost difference between buying and building a house?


You mean hiring a GC to oversee the construction? Or do you mean hiring a home builder? Both are going to have cost overruns but I'd have a tried and true homebuilder do it before I'd hire a GC.

House 1 (already built) will probably cost less but with House 2 you get to choose the floorplan and finishes.






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GREENHEAD22
LSU Fan
LafayettebywayofBush
Member since Nov 2009
7993 posts

re: Cost difference between buying and building a house?


Always heard it was cheaper t build and you get what u want.





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whit
LSU Fan
B.R.
Member since Sep 2010
5076 posts
 Online 

re: Cost difference between buying and building a house?


Get with a few different home builders and get quotes. Compare





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Capital Cajun
LSU Fan
Over Yonder
Member since Aug 2007
918 posts

re: Cost difference between buying and building a house?


Depends on land cost. If the land cost is the same then you could save a few bucks by hiring a builder and build a more custom house that way.





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91TIGER
LSU Fan
Lafayette
Member since Aug 2006
6215 posts

re: Cost difference between buying and building a house?


quote:

If it belongs on the Money board, feel free to move it there.


No flame intended. I just think you will get a better answer and not have to weed thru the "PIIHB/Cool Story Bro" et al..., you will get here. I have never built a home but did work in the mortgaging field in the 90's. Right now you can get a good deal on a home that can't sell for its value, but you're probably never going to find the EXACT layout you're looking for as previously mentioned.






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TDawg1313
Washington Fan
WA
Member since Jul 2009
8945 posts

re: Cost difference between buying and building a house?


Hiring a homebuilder. I'm not prepared at all to start getting quotes or anything, I was just generally curious for what to do in a few years. I would love to design and customize my own house, but I wasn't sure if it would make sense financially. Sounds like it's close enough in costs where even if you build your own, the fact that you get to customize it might outweigh any extra costs.





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TDawg1313
Washington Fan
WA
Member since Jul 2009
8945 posts

re: Cost difference between buying and building a house?


quote:

No flame intended. I just think you will get a better answer and not have to weed thru the "PIIHB/Cool Story Bro" et al..., you will get here.

True. I just figured more eyes would see it here so I might get someone who has faced this situation directly.
quote:

Right now you can get a good deal on a home that can't sell for its value, but you're probably never going to find the EXACT layout you're looking for as previously mentioned.

Hopefully it stays this way for a few more years.






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TigerRad
LSU Fan
Columbia, SC
Member since Jan 2007
4508 posts

re: Cost difference between buying and building a house?


I am building a house right now and I can tell you it will end up costing me at least 30% more than an existing house of similar size. The reasons are

a) Houses are cheap as hell right now and people are willing to take a bath to get rid of one when they need to and

b) "getting exactly what you want" almost always means getting a more expensive option than those chosen by developers/speculative builders. This becomes more and more apparent to me every day, and is especially true since this is my "lifetime" house and resale value is only a minor concern for me. You end up erring on the side of durability/longevity/energy efficiency instead of economy. I have chosen that and it is OK with me because I can afford to make these decisions, and end up with exactly everything that I want.

If you cant, or if you intend to sell within 10 years, I would buy a house and not build.


eta: I looked at about 60 houses in my area over an 18 month period and it became clear to me that I would never be satisfied with any of them, so I have no regrets about spending more



This post was edited on 11/7 at 7:30 pm


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sonusfaber
New Orleans Pelicans Fan
Chattanooga, TN
Member since Apr 2010
2408 posts

re: Cost difference between buying and building a house?


Actually if you don't do it right the real cost could come at the sale whenever that might be. I think it's a likelihood you could design it in a way that's too personal and not attractive to potential buyers. Then again you could live the rest of your life there and that doesn't matter. Also, if the entire project isn't planned like a professionally built house you could start running out of construction money and be forced to buy cheaper things that won't reflect the intended original design. If you're the typical I'd figure asking this question you're probably financing the construction loan that the bank will use your current house as collateral. So here is the advice:

If you need financing I would buy already built. A couple reasons:
Building a house is highly stressful. Top that with an eventual money stress and you're likely to put a marriage in Jeopardy. Since you're already adding risk of financing and trying to sell another house, may as well minimize some other risk. With the pre-built you know what you're getting. Also you have to take things like flood insurance into account. You only get construction insurance during the building. Not home owners.

If you have the cash, build it. Sounds like you're trying to save (make) money. Unless you feel like flipping houses I'd stick to traditional investments and forget about something you'll be so emotionally invested in. Also let a realtor look at the final sketches and see if it's attractive to an impartial eye.






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sonusfaber
New Orleans Pelicans Fan
Chattanooga, TN
Member since Apr 2010
2408 posts

re: Cost difference between buying and building a house?


quote:

since this is my "lifetime" house and resale value is only a minor concern for me


Way to look out for the kids

















kidding. my parents just finished building their final house and I could care less. I'll probably take 90-95% (or whatever I can get) of appraisal when the time comes just to get it done. Someone will get a killer lake house for a great price in hopefully at least 30 years or so.






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TigerRad
LSU Fan
Columbia, SC
Member since Jan 2007
4508 posts

re: Cost difference between buying and building a house?


quote:

Way to look out for the kids


LOL

I will seriously tell them to GFY . They are lucky they get to live in this cool house for a while.

I have told my parents I hope they die broke, and they don't owe me a thing. I'm sure my kids will feel the same if I raised em right.






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TDawg1313
Washington Fan
WA
Member since Jul 2009
8945 posts

re: Cost difference between buying and building a house?


quote:

I looked at about 60 houses in my area over an 18 month period and it became clear to me that I would never be satisfied with any of them, so I have no regrets about spending more

Thanks. Good insight there. Something I definitely need to weigh in on is how stable my job location would be, especially in the early part of my career. Sounds like there's a chance I might get moved around (albeit within the Puget Sound region) as I work my way up.






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TDawg1313
Washington Fan
WA
Member since Jul 2009
8945 posts

re: Cost difference between buying and building a house?


quote:

I think it's a likelihood you could design it in a way that's too personal and not attractive to potential buyers.

Something that would definitely be under consideration. I don't think I would do anything that would be personal to the point where other people wouldn't like it as well though.
quote:

If you have the cash, build it. Sounds like you're trying to save (make) money.

Not trying to save or make, I was just curious of the cost differences and if it would be feasible to do. Architectural drafting was my #2 career choice, so designing my own house is just something I really want to do.






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sonusfaber
New Orleans Pelicans Fan
Chattanooga, TN
Member since Apr 2010
2408 posts

re: Cost difference between buying and building a house?


quote:

I was just curious of the cost differences and if it would be feasible to do.


I can't stress the cost of stress itself. Know a couple that got divorced right after building. My parents admitted it brought a lot strain but why even think about not making it work at 60.

My dad tried to save by overseeing construction and doing a lot of work himself. Problem is -never managed anyone before and probably doesn't recognize dependable people only the price. It worked out in the end. I've posted a pic somewhere here of the view. May try to find it.

ETA:
Not a fan of the pier so much but it only would ever get used as a way to jump in the boat. I'd probably put a really nice one in before resale.



This post was edited on 11/7 at 8:02 pm


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moneybadger
LSU Fan
$$$$$$$$$$$$$$$$$$$
Member since Oct 2011
1198 posts

re: Cost difference between buying and building a house?


quote:

All things being equal



quote:


You answered right there



I laughed






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