Price of Building a House

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About 30-40k more in what I understand to be built in equity (i.e. the house has risen in value that much and I would appraise at that much more).

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That's it? Are you building less square footage than you currently have? Your new house is gonna be valued at $250/sqft at least.

ETA: I think I misinterpreted. You're saying your house has apprecitaed in value that much since you bought. Using your estimated construction cost, you're going to gain $75-$125 for every foot you build. If you can afford the build, I say it's worth the headache.

More.

Total equity I can borrow against is about 135k if home was re-appraised. Ample more cash on hand.

Bigger than current.

I was planning on putting 30+% down on homes ww were considering buying new.

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I don't understand this part. Is this equity in ANOTHER house, not the Old Metairie house?

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I think what he's just saying it in a rather odd way

He has 100K in equity based on original purchase price and home has increased in value by 30 to 40K

I'm slow. Presumably the existing house has some value. If you demolish the existing house, you are destroying that value. I don't understand how the equity in the old house translates into equity toward the new house?

I would sell the house that has value and buy a new house. Otherwise, it appears to me you are not utilizing the equity in the old house if you destroy it.

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ETA: 3000 sq ft x $175 build cost = $525,000. House would need to be worth $655,000 for you to still have $130,000 equity. How likely is that?


if you bought a $655,000 house and put $130,000 down you'd finance $525,000

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3000 sq ft x $175 build cost = $525,000. House would need to be worth $655,000 for you to still have $130,000 equity. How likely is that?

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3000 sqft new construction in Old Metairie is gonna be at least $700k. Most likely a decent bit more.

Yes. 700-750k

Is the current home paid off? If so, is the lot without the house worth $140K?

What do you anticipate the footprint of the new dwelling being? Is the current house on slab or crawl. What is preference for new dwelling?

Windows - Vinyl, PVC Cellular, Wood, Aluminum Clad? How many?

Roof - 30 year arch shingle or metal, simple pitch or
complex?

Soffits/Fascia - cement fiber or vinyl?

Insulation - Batt, Cell, Foam?

House Wrap- Brick, Cement Fiber, Vinyl?

Cabinets - PreFab, Semi Custom, Full Custom?

Appliances - Closer to Frigidire or Wolf/Sub Zero?

Trim Package - Solid or Hollow core doors? Baseboard height, Crown size, ceiling/wall treatments? Custom closets with built ins vs wire shelving. Pantry

Master bath details (freestanding vs tile surround tub, shower drop in vs tile surround, frameless glass shower door, marble, ceramic, porcelian)?

secondary bath details (drop in tub shower combo, tub/tile surround, shower only)?

Wood floors throughout or carpet in bedrooms?

As far as rate, the 3's are gone. You are looking at around 5%-5.25% for interest portion of construction loan and once converted to permanent looking at 4.75.4.875. By the time you convert if anything I would anticipate rates tick up, BICBW.

The safe play is to buy and lock rate, but i'm a custom guy as well so I fully understand.

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Is the $/sqft cost including the demolition of the older house?

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I'd guess not, but tearing down a small house is relatively inexpensive vs scope of project (7k-10k)

I would look at a flat fee builder where you act as the GC on paper. It’s more work for you but you are going to be looking at 175k/sq ft or more if not. I know a partnership that does this for higher end houses throughout the city.