Build or Buy?

[Thump]

Boxcar,

I'd highly recommend purchasing an existing home, especially when all of these young couples who bought these huge houses all of a sudden can't pay for them because they don't understand how things like a balloon mortgage work.

If you are going to build, you better live close to where it will be built b/c you'll need to stop by on nearly a daily basis to make sure they aren't screwing things up.

I was in the same position as you about 2 years ago and decided to purchase an existing older home and fix it up.

Also, I'm guessing that building supplies right now are probably pretty high considering all of the hurricane damage and reconstruction that is taking place. Even though you're looking a year down the road, that's something you always have to consider.

Good luck on whatever you decide to do.

 

[redskinbucksfan]

I'm in this business (indirectly), so maybe I can be of help to you, but first a couple of questions:

1) What is your time frame for staying in the house (i.e. 5-7 years, or 10+?)
2) Are there any other anticipated family events "planned" in the next 2 years (i.e. children/schooling, parent/ grandparent care, job transfer, etc.)?
3) What type of financing options are available (what% money down, what type of mortgage, etc.)
4) Have you shopped around at all to find the types of home you are looking for that are already built and for sale? What are they selling for? Are you setting a price, and looking in that range, or do you have an idea on the type of house, and are looking to find one that seems like a good deal?

 

[Buck Nasty]

Nasty -
Just the opposite for our family. My wife's folks built a Dominion and loved the experience. We almost built an MI, only to find through some careful research that they were quoting us a price too low. Once we did the math ourselves and ran it past a friend who does mortgages, we found we couldn't really afford the house and would have lost it in a year. When I confronted the MI sales person, she looked appalled that we had checked her numbers. She copped a 'tude and literally threw the envelope with our check in it at my wife.

I would agree with that for the purchasing process. We had no problems w/ dominion in that area, in fact I am still friends with my sales person. It was after the purchase and the final product where things went down hill. They say they offer all of these warranties, and home protection from defects, but when you try to get them to fix it they will not do it, or it takes 6+ months and the threat of legal action to get anything done. My home had two different colors of stucco on the front of it for almost a year. My garage floor disintigrated after the first time it got cold. They did not fix that unil the following winter, and then that one did the same thing. My list is too long to detail, needless to say I pretty much had to go through my sales guy who would copy Doug Borror on my e-mails to get anything done. In the meantime they send a guy out to my house to take a picture of it so they can use it for marketing purposes (like that was going to happen)

 

[BoxCar_Willie]

I'm in this business (indirectly), so maybe I can be of help to you, but first a couple of questions:

1) What is your time frame for staying in the house (i.e. 5-7 years, or 10+?)
2) Are there any other anticipated family events "planned" in the next 2 years (i.e. children/schooling, parent/ grandparent care, job transfer, etc.)?
3) What type of financing options are available (what% money down, what type of mortgage, etc.)
4) Have you shopped around at all to find the types of home you are looking for that are already built and for sale? What are they selling for? Are you setting a price, and looking in that range, or do you have an idea on the type of house, and are looking to find one that seems like a good deal?

Thanks for all the good input from ALL!!


1. Ideally the rest of our lives so 10+
2. I think we're done with the kids, we have 2 though I would like to have a third eventually I just don't think the wife would.
3. Not getting into too much detail I want a house payment of 2K a month or so, this includes taxes/insurance. That house is 3500 sq ft, at est $100 per we can do that.
4. We have a price range and typically hit the high end of it. A lot of the ones in our price range are Gawdy and aren't designed as well for living. I can find good deals but the wife was moved a lot growing up and wants to pick a house and stay in it and yadda yadda yadda grow old in it. So using that Criteria I'm not finding the one we want.

 

[Taosman]

Building or even subcontracting your home is a huge pain.
But, if quality and design are most important, it's the only way to go.
Build or subcontract will take a chunk out of your life.
We were both working full time and spending 4 to 6 hours most days at our project.
And like most projects, it was never 100% completed.
Life is too short. Buy something built and have it professionally inspected.
Enjoy your life!

 

[Dryden]

Also, I'm guessing that building supplies right now are probably pretty high considering all of the hurricane damage and reconstruction that is taking place. Even though you're looking a year down the road, that's something you always have to consider.

The best point so far. Materials cost is absolutely through the freakin' roof right now. At my local Lowe's, the price for conduit has doubled this year and I've been waiting two months for them to keep drywall in stock.

 

[coxew]

Also, I'm guessing that building supplies right now are probably pretty high considering all of the hurricane damage and reconstruction that is taking place.

I'm in the process of finishing my basement, really just waiting to get in the flooring and cabinets. Lumber was 15% cheaper in northern Kentucky than last spring when I had a little project going on in the garage.

 

[redskinbucksfan]

Thanks for all the good input from ALL!!


1. Ideally the rest of our lives so 10+
2. I think we're done with the kids, we have 2 though I would like to have a third eventually I just don't think the wife would.
3. Not getting into too much detail I want a house payment of 2K a month or so, this includes taxes/insurance. That house is 3500 sq ft, at est $100 per we can do that.
4. We have a price range and typically hit the high end of it. A lot of the ones in our price range are Gawdy and aren't designed as well for living. I can find good deals but the wife was moved a lot growing up and wants to pick a house and stay in it and yadda yadda yadda grow old in it. So using that Criteria I'm not finding the one we want.

Well, you certainly have things well thought out, which is what I was hoping for. I see too many people who "live for the now" and don't think far enough ahead, so they do things like build/buy too much house on an interest only loan that ends up being a half empty house with minimal opportunity to build equity. Another reason I asked is that housing prices are at a tipping point right now. Many sellers saw the run up in prices and decided to "sell high" when perhaps they ordinarily wouldn't have. Low interest rates fueled the fire by bringing a lot of "new" buyers into the market that ordinarily wouldn't be yet. The fallout from this is that housing boom has slowed somewhat, so some sellers who haven't sold their house have now seen it sit on the market much longer than they anticipated/ planned for. This is where the bargains lie. New builders, however, have yet to succomb to much of a price crunch, so you will still pay a premium comparatively.

Now, you have a long term, stable outlook. That lends itself to being the optimal home builder (I'm not talking about specific builders, construction issues, etc., but as an overall profile) because you can customize the house and spend the money because you know you aren't going anywhere any time soon. In this case, the ability to get things exactly how you want them may be worth paying the premium.

On the other hand, since you are not planning on moving for awhile, I think it would be worth your time to continue to search existing sales, especially in the spring, because you may find you can get more house for your buck, and some existing homes have features/ construction quality that just aren't replicated in a build. And, pleeeeaaaaaase, steer clear of neg-am or interest only loans. Well, congrats, good luck and happy hunting! Stressful yet fun and exciting. If I can help any further, don't hesitate to ask.

 

[Buckin' A]

Willie-

Two years ago my wife and I were asking ourselves the same question. We ended up going with a mod home. Now when I heard mod, I thought "trailer." Mods are stick built just like an MI or Dominian home. Only difference is that they are built room by room in a factory, where the wood isn't laying out in the elements.

We built a 4 bedroom, 2 1/2 bath home on 2 acres. We had a friend in the business, so we saved some money. But these homes come with 2x6 exterior walls, argon filled windows, and some really nice features.

Check out these sites if you are interested.

www.homesbyibs.com

www.allamericanhomes.com


Here is a pic of the home we went with. It was brought in 4 sections and assembled on site.

 

[BuckBackHome]

Willie-

Two years ago my wife and I were asking ourselves the same question. We ended up going with a mod home. Now when I heard mod, I thought "trailer." Mods are stick built just like an MI or Dominian home. Only difference is that they are built room by room in a factory, where the wood isn't laying out in the elements.

We built a 4 bedroom, 2 1/2 bath home on 2 acres. We had a friend in the business, so we saved some money. But these homes come with 2x6 exterior walls, argon filled windows, and some really nice features.

Check out these sites if you are interested.

www.homesbyibs.com

www.allamericanhomes.com

Mods can be impressive. I knew a planner who left the city he worked for and when they hired a new one the old guy took him to the most expensive neighborhood in that city (Homes >$300K ten years ago) and asked him to pick out the mod homes that were nestled in with the "site built" ones. This very experienced planner could not tell the difference and no one in the neighborhood could either.

 

[Buckin' A]

No doubt. I was skeptical at first, but quicky changed my toon. You should have seen the look on the people in my neighborhood's faces. They drive by my land one day...no house. The next day, a 2 story home setting there.