Building a home versus buying?

[2manyrocks]

Never hurts to look around to see what deals might be available. Lots of folks live in town, but have a farm to get away to.

It's ridiculous what houses are selling for when it's impossible to build the same house for the same money.

 

[Beltzington]

We bought 8 acres in 2009 with every intention of building and occupying within the year. Had plans drawn up and had high hopes of finding a hungry contractor looking for work. Despite the huge downturn in new homes during the economic upheavals the builder still came in at $140/sqft. Not wanting to take on one-half million in debt when we are planning on retiring in a few years we decided against building and are currently working to pay off the land.

Waiting has also allowed us to improve the property and learn the ebb and flow of the area, with this knowledge we are glad we did not build the 3,000 sqft home where we originally planned and now plan on building a much smaller home we can afford and enjoy and maintain throughout our retirement.

In a nutshell, take your time with this decision although living a long ways from your property means you really need to be committed to projects or they can easily be delayed. Good Luck!

 

[oldtoyboyd]

This was the debate for my wife and I. We bought some land and moved out of town. We decided to purchase a used double wide and live in it for about 5 years or so. We will them build a house because we love the land we bought and the area. We have a third the money in the land and house as we did in town with a nicer easier life. My wife has selected house plans for the house that we will build. It will be just right for the kids as the finish school and for us when the nest becomes empty.

 

[scoutcub]

Appreciate the many great responses!

Now let me muddy the waters a bit......the property was bought in 2009 at a very fair price, for a reason. We bought it knowing that a local coal company was planning to do some deep mining on the adjoining property in the future. We walked the corner of our property with a rep that they also have leased, to see the impact. I guess we had hoped it wouldn't go through, but looks like it is. It is still several hundred yards from the homesite, but will still be there and most likely heard.
More recent developments...with the big wet gas push in PA/Ohio, the property is sitting on top of one of those deposits. We have been contacted by several companies with offers to purchase mineral rights. We have not sold, and have been told the major gas companies will offer a substantial payment in the future when they purchase and use the existing oil well leases.....
Sooo, we are planning on keeping the property as an investment at the very least. It does have everything we want, land, pond, stream. I am in the process of working up the property, cutting in trails, and cleaning up the woods, as the seller logged the property before selling it to us. Tops and stumps everywhere.
I was planning on building a pole barn on the property this year, but re-thinking that option.
So back to the original question. We do want to have a good piece of property and nice house. We did recently look at a large older (built in 90's) all brick house on 30 acres, for less than $100/sq ft. The deals are out there, just have to wait for a good one.
We're both pretty picky, and can always find fault in the houses we look at. Definitely want a large mudroom/entry probably in thru the garage, seems like very few folks use the front door anymore.
If we built, I would do all I could, (ala Obed) to save $$$ and build sweat equity. But as Obed even mentioned, after all that work, it's still very expensive to build when you include everything you have to do.....and then possibly can't all your money back if you decided (or had to) sell?
Wish I could predict when the housing market will turn around.....:laughing:

 

[wcampbell47]

We bought property in 6 years ago with an old house. I could not convince my wife that the house was unrepairable. After several years paying taxes and insurance on a house we could not live in we had it torn down. The new house is of our own design. We are doing some of the work but the builder is doing the majority. So far they have been very easy to work with and have willingly fixed the things we did not like or changed. How you get along with your contractor makes all the difference. Costing $98 square foot and I build the cabinets and do the flooring and interior painting.

 

[newbury]

OP's situation is similar to what mine was 5 years ago.
Long post, but it's early.

When I was about 15 my Dad and Grandfather and I with darn little help built a duplex in Vermont. Hauling 4 cinderblock 40 yards by hand builds muscles.

Five years ago and now I've a primary residence in Alexandria, VA. All along the plan has been to retire to NE Mississippi. Thru prudent purchases and inheritance we had obtained about 300 acres in our retirement area. I wanted to BUILD!!!
SWMBO wanted to move in, all our properties were "to far from town". So we started looking and got REAL serious about the 2009, as the market dropped.
(Side note - They put in a Toyota plan within easy commute distance so every seller wanted 2008 prices).
In our area we were finding building with a GOOD contractor would be about $100-150/sq ft. The GOOD contractors were and are still in demand and charging 2008 prices.

So we looked and looked had relatives in the area looking, etc. Bottom line was a medium size, liveable (nothing required to be done to move in), well built house on AT least 3 plus acres. We went thru several almost buys till we found the one described here: http://www.tractorbynet.com/forums/projects/212437-rough-value-workshops-barns-ne.html.

It's about 2,200 sq ft upper, 900 sq ft FULLY finished basement (w/ full bath and kitchen) which walks out at ground level to a pool. With a covered patio off it that is about 40x20 leading to the pool and hot tub.

Based on the 2,200 sq ft it was calculated at $75/sq ft. Which ignores the fully finished basement.
Most of the houses we had been looking at that met our minimum standards were running $60 to $70/sq ft. And few of them had a pool.

OR 5,500 SQ FT OF SHOP ON GOOD CONCRETE

.

Another deciding factor was that we got to buy additional acreage so it's about 70 acres.
/edit plus it's within tractor time (3 miles) of another 120 acres we own

So right now I'm sitting in the living room of it. There's a lot of work to be done. Trees trimmed, painting, SWMBO wants a new kitchen and an addition the size of the house.

Bottom line is that based on my "looking around" it would have cost me about 1/3 of what we paid JUST for the workshops. Right now I've a tractor, a sawmill, and 5 vehicles garaged, with adequate room for whatever more. Plus there's an apartment down in the workshops

So I say look hard, if your about ready to retire do you really want to act as a general contractor or carry the block yourself ( i.e. build it yourself)? Or do you want to hire occasional jobs out (buy used)? Or if you've got the excess money with your mineral lease stimulate the economy and buy a brand new house.

 

[Storm56]

I agree, we built our house 7 yrs. ago and I am sure glad we did...it is just the way we want it and it is our retirement home, it sure is nice to have it all new and know you have no hidden dangers anywhere luring behind walls and such...if you can afford it then do it, you only live once , why not have what you want and the peace of mind knowing how it was built...

Could not have said any better myself. This is exactly what we did and I doubt we will ever regret it. Plus it is built exactly were we wanted, on the 283 acres we busted our butts to buy and improve to suit our likes. Cannot put a price on that!

Good luck in your decision.

 

[schoolsout]

We live in a different and very expensive part of the world. Just to build a cheap house is probably in the $150- $170 per sq ft range, with only a few bells and whistles you can easily get over $200 per sq ft fast.
Have given some thought to moving across the country, from the west coast to the east coast. In the province of Nova Scotia there are many homes under $100,00 vs the $650,000 or so we hope to get for ours. We built our present house on land the wife's family had since 1965 but when we move it really doesn't matter where we end up, as long as it's on the right side of the grass. :laughing:

That was much cheaper than I was expecting. Some existing homes near town were really cheap at $105/sq ft. There are many others that some consider "cheap" at $150/sq ft, as well. I'm thinking the number I said is from people needing work and doing it just to put a little bit of money in their pockets.

 

[schoolsout]

We have built 2 houses and loved the process. When we built the second one customers at my wife's store said, "You'll be getting divorced soon!" Wrong, wrong, wrong, but it depends on how you settle differences.

I was told a year ago that a mid range 2,000 sq. ft. ranch style house would run about $150 per sq. ft., but the builder (who built our present house) was just guessing--there hadn't been any new homes built for awhile and before that he built mostly ego houses, 3,000-4,000 sq. ft.

Summer of 2010 we passed a mobile home lot with units that looked like real houses. Stopped in, chatted with the sales guy and went thru 8 or 10 units. They build and deliver without a roof and add the roof onsite, which lets you get any roofline and eave width you want. Quality looked pretty good. For a 2,000 sq. ft. unit, he said $40-80/ft, depending on what you wanted--quality of carpet, cabinets, etc. Garage, site development, etc. would be extra but that would apply to the stick built cost as well.

If we could find a nice couple acres at an affordable price in a location we want, we would go for a MH, but it would have to be one of those that look just like a site built house.

I'm assuming you are talking about a modular home? Those are supposedly a bit cheaper and very well built (if done right). My parents live on the ocean and next door is a modular home. It is elevated (flood zone) and looks just like a house. I'm considering this option as well when I finally make a move.

 

[brin]

Appreciate the many great responses!

Now let me muddy the waters a bit......the property was bought in 2009 at a very fair price, for a reason. We bought it knowing that a local coal company was planning to do some deep mining on the adjoining property in the future. We walked the corner of our property with a rep that they also have leased, to see the impact. I guess we had hoped it wouldn't go through, but looks like it is. It is still several hundred yards from the homesite, but will still be there and most likely heard.
More recent developments...with the big wet gas push in PA/Ohio, the property is sitting on top of one of those deposits. We have been contacted by several companies with offers to purchase mineral rights. We have not sold, and have been told the major gas companies will offer a substantial payment in the future when they purchase and use the existing oil well leases.....
Sooo, we are planning on keeping the property as an investment at the very least. It does have everything we want, land, pond, stream. I am in the process of working up the property, cutting in trails, and cleaning up the woods, as the seller logged the property before selling it to us. Tops and stumps everywhere.
I was planning on building a pole barn on the property this year, but re-thinking that option.
So back to the original question. We do want to have a good piece of property and nice house. We did recently look at a large older (built in 90's) all brick house on 30 acres, for less than $100/sq ft. The deals are out there, just have to wait for a good one.
We're both pretty picky, and can always find fault in the houses we look at. Definitely want a large mudroom/entry probably in thru the garage, seems like very few folks use the front door anymore.
If we built, I would do all I could, (ala Obed) to save $$$ and build sweat equity. But as Obed even mentioned, after all that work, it's still very expensive to build when you include everything you have to do.....and then possibly can't all your money back if you decided (or had to) sell?
Wish I could predict when the housing market will turn around.....:laughing:

Scoutcub.....now that you have updated your information....I think if it were me based just on what info. you have shared I would look for a good deal on an existing house on acreage and go that way and as you say , keep the other acreage as an oil/gas investment...There are just too many really good deals out there on homes with acreage where folks are being forced to sell due to their personal reasons and the awful market...building a house is expensive and with the give away prices of existing homes today...it is tempting to go that way...Good Luck no matter what you decide.

 

[Mousefield]

Scoutcub.....now that you have updated your information....I think if it were me based just on what info. you have shared I would look for a good deal on an existing house on acreage and go that way and as you say , keep the other acreage as an oil/gas investment...There are just too many really good deals out there on homes with acreage where folks are being forced to sell due to their personal reasons and the awful market...building a house is expensive and with the give away prices of existing homes today...it is tempting to go that way...Good Luck no matter what you decide.

Given the updated information I would also agree with Scoutcub.

 

[2manyrocks]

Even if a particular house doesn't have a mudroom or whatever, if you buy it at the right price, some houses can be rennovated to suit what you want.

My concern with the additional facts you posted is you could not only lose money building new based on market conditions, but the mining on property next to yours could compound your loss if nobody wants to buy your house on that property next to the mining. Of course, the tax assessor will still tax you anyway even if your house would be the last one to sell in any market because of being next to a mining operation.

 

[Oaktree]

Not sure if this is important to you or not, but by building new you're contributing, ever so slightly, to the creeping decline of open space.

 

[2manyrocks]

When there are umpteen vacant homes for sale, it doesn't help the resale value of that new home you just built, either.

 

[PapaPerk]

Unless you have plenty of extra cash and a 55 gal drum of Rolaids I would not build a house.

As you said it's a buyers market. Many outstanding homes available at bargain prices. Buy one of those cheap and then modify slightly to fit your specs.

Building a home is an experience. Both good and bad. If you want an experiance build... if you want low drama and a peaceful life.... buy. :thumbsup:

 

[riptides]

Even if a particular house doesn't have a mudroom or whatever, if you buy it at the right price, some houses can be rennovated to suit what you want.

...

Watch out for that word..... rennovation.

It is a slippery slope.

 

[2manyrocks]

You're right. I need to PM you before I buy anything else to remind me of that. :thumbsup:

 

[NorTracNY]

Some great advice. I agree with a few of the people here.

1) Take your time regardless of what you do.
2) Look at what exists and sketch up what your ideal house would look like
3) If you decide to build, I see you're in Ohio, consider modular. Look at Ritz-craft based in PA. The price is SIGNIFICANTLY less, you can get great quality, and you can design your home.

We did these steps and it turned out better than we imagined.

 

[Rad1956]

Case in point.....we have 62 acres in NE Ohio we were planning on building our retirement home in a few more years. Speaking with a wise older friend of ours, he asked why would we build when we can buy a place these days for much cheaper per sq ft than building, and I do think he has a point.
Whether it be a foreclosure, or a property that someone needs to sell, it's most definitely a buyers market.
The biggest advantages I can see with building is you get it designed the way you want, and it's new......buying used, you sacrifice these but spend quite a bit less on an existing home. (paid off sooner) The wife and I are currently discussing this, and trying to figure it out.....
I'd be interested to hear some opinions on this!

Scoutcub:
My wife and I bought 51 acres in the hills of Holmes county Ohio a few years ago with the same idea in mind. Two years ago we built the house we wanted -- exactly like we wanted -- and we are very glad we did!
This may be a buyers market, but it is also a great time to build! And there is nothing like doing it exactly YOUR way! My aged father told me to enjoy it while you can -- time is short!

 

[scgargoyle]

We're in the middle of building in SC right now. We spent years looking for just the right property and location, and paid cash for it 5 years ago. I finally started building last August. The barn is up and nearly complete. I took the winter off (got hired back at my old job in FL), and I'll start the house in April.

Reasons? We wanted a very small, energy efficient house, with a lot of custom detailing that I could never afford to pay someone else to do. We didn't want the headaches of an older home, or the energy bills in a few years when we are on a fixed income. Financially, we'll probably never get our money back out of it, nor do we care. I hope to leave the new house feet-first, many years from now. I'm doing most of the work myself, both to save money, and to fulfill a life-long dream of designing and building my own house. We're paying for everything out-of-pocket, so there will be no mortgage. Yes, the barn IS bigger than the house!