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Questions about building a house and costs
Posted on 7/24/14 at 1:56 pm
Posted on 7/24/14 at 1:56 pm
I'm not sure if this is the best board or not. The wife and I decided to build a house on family land in Natchez, MS.
Anyone her have an idea of cost per sq. ft. For that area? I will sub it out myself.
Also, I have a descent amount of money saved up. Should I borrow from the bank for the house then put the money down at closing or pay contractors with cash personally?
Anyone her have an idea of cost per sq. ft. For that area? I will sub it out myself.
Also, I have a descent amount of money saved up. Should I borrow from the bank for the house then put the money down at closing or pay contractors with cash personally?
This post was edited on 7/24/14 at 2:08 pm
5
Posted on 7/24/14 at 2:05 pm to Jack Daniel
There is an internet site which gives you plans and tells you approximately how much it would cost to build each plan in a particular zip code.
Happy Googling.
Happy Googling.
Posted on 7/24/14 at 2:15 pm to Jack Daniel
I dont have alot of experience as Im just getting into real estate (just bought my 2nd rental investment) so I havent built my big boy house yet, but I know personally I would feel comfortable sitting on that money you have saved and borrowing from bank. Then, a year down the road as things sort themselves out, having that chunk of money will give you options. Just my way of thinking and I could be way off base. Honestly, Outdoor board is by far your best bet with good advice. They may even have some posters that know builders in that area.
Posted on 7/24/14 at 3:16 pm to Jack Daniel
quote:
build a house on family land in Natchez, MS.
This is the part im curious about. Is the family land in your name or will you be building on land someone else own?
Posted on 7/24/14 at 3:29 pm to Jack Daniel
quote:
The wife and I decided to build a house on family land in Natchez, MS.
I believe the land is going to have to be titled in your name or your wife's name in order to get a mortgage.
Posted on 7/24/14 at 3:37 pm to Jack Daniel
Cost per square ft will vary depending on type of house. Many variables.
I would get a construction loan and take draws as you builtd to pat your subs. Us the cash you have saved to buy appliances, hardware, plumbing and electric fixtures. These items need to be purchased in advance and most of the time will not be reimbursed until installed.
At the end of the process when you go to permanant financing put down whatever you want.
I would get a construction loan and take draws as you builtd to pat your subs. Us the cash you have saved to buy appliances, hardware, plumbing and electric fixtures. These items need to be purchased in advance and most of the time will not be reimbursed until installed.
At the end of the process when you go to permanant financing put down whatever you want.
Posted on 7/24/14 at 3:58 pm to ScottieP
Cost per square foot varies dramatically from area to area and with the level of finishes/amenities selected. BUT, unless you can pay for the whole thing in cash, you will need to concern yourself up front with appraisal values in the area.
Appraisals are drawn from comparable properties in the area...if it's a rural area with few/limited comps, it will almost certainly NOT appraise for what it costs to build (unless your plans are very modest). Have known tons of people who had 20, 30, 50% of build cost in hand, but the planned house wouldn't appraise at the cost to build. Some saved and paid for it all in cash, others dramatically scaled back their plans...others built big, but skimped on finishes/fixtures and then replaced them once the final mortgage was landed (paying cash for the upgrades).
So don't get your hopes too high on securing construction funding until you familiarize yourself with the real estate market in the target area.
Appraisals are drawn from comparable properties in the area...if it's a rural area with few/limited comps, it will almost certainly NOT appraise for what it costs to build (unless your plans are very modest). Have known tons of people who had 20, 30, 50% of build cost in hand, but the planned house wouldn't appraise at the cost to build. Some saved and paid for it all in cash, others dramatically scaled back their plans...others built big, but skimped on finishes/fixtures and then replaced them once the final mortgage was landed (paying cash for the upgrades).
So don't get your hopes too high on securing construction funding until you familiarize yourself with the real estate market in the target area.
Posted on 7/24/14 at 4:01 pm to lsufan1971
That is correct. We are getting a portion deeded in our name
Posted on 7/24/14 at 5:18 pm to Jack Daniel
Why build? Natchez has a glut of real estate and you can buy a lot cheaper. Drive around before you take that plunge...It's a buyer's market there (as opposed to, say, New Orleans, where it is a seller's market)
Posted on 7/24/14 at 5:50 pm to Rev1897
I do agree with you if we were interested in the 100's of houses for sale on 1/2 acre lots. We will be building on large acreage
Posted on 7/24/14 at 5:50 pm to Rev1897
quote:
(as opposed to, say, New Orleans, where it is a seller's market)
Tell me about it, I have been looking for weeks and I literally can not find one house that I want to buy.
Posted on 7/25/14 at 1:35 am to RollTheRock
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