I frequently get the comment from new buyers that perhaps they should build a house instead of buying one. So how realistic is that and will it work out less expensively in the end?
Well, here are some of my thoughts on the issue.
If you are looking to purchase a lot outside of a subdivision, you have your work cut out for you. Most vacant land comes in larger parcels and the sellers won't chop off random pieces to sell you. Then of course there is the location. You may buy a few acres of lovely land with views of rolling pastures and woods and then all of a sudden, sprouting like mushrooms, a developer moves in and throws up a subdivision of high density houses or condos and you are looking at the dumpster end of that community instead of the rolling hills etc. Or, as I recently experienced, a client calls me just before slamming down his money to buy a lovely piece of land. Good job that he called me. He was about to build a lovely home right up against a proposed new jail. And then there are the chicken farms and the hog farms etc etc.
What about building in a community? Well that's much safer but you are limited in the design and size of the house. Your plans will have to go before some sort of Architectural Committee who will shred what you thought was a fabulous home. I had a client who wanted to build a Florida style house in a very traditional community. I had to explain to him that lanais and tiled floors and red terra cotta roof tiles and the hot weather type design, probably would not fly in that community and when it came time to sell, he would have an extremely limited buying population. Also, as a side note, the cost of the house can be calculated at 4x the cost of the lot. This is an approximation but holds true generally. And then, in some communities, one is locked into using one of the builders from a small stable of approved builders and very often, the lots for sale are owned by one of those builders. If you are able to bring your own builder, and you still have to interview and find one, well consider that this is akin to a 10 year marriage, compressed into 6-9 months. It could be a wonderful experience or a nightmare. (One would be shocked at the number of divorces that follow a year or two after the completion of a new house).
So what about the cost of a newly constructed home versus a resale. Now that's a really interesting topic but you will have to wait until a later blog from me on that one because there is a lot of information for me to share.
So call me, whether you have the urge to build or buy. It could be very worth your while....(678)234-5866