Buying vs Building a House?

I am torn between buying or building a home?

We are going to be in the market shortly and I am really considering building a home all of the sudden. We are in the market for a 4br home in a neighborhood around 2300 sq feet. Here is what I have found...

Of houses on market:
-Average about $100 a sq ft or ($230,000)
-6 to 25yr in age of home
-Electrcity/Gas avg about $167.00 month
-5.3% mortgage rate
-Possesion in 60 days
-Don't qualify for $8,000 first time homebuyer federal tax credit
-$1182.00 a month after down payment


Building a home
-Custom build floor plan, nice upgrades for $90.00 per sq foot
-5 star tested/efficient by Touchstone/EnergyStar
-Electricity/Gas avg of $101.00 month
-5.5% mortgage rate
-7 months to build
-Qualify for NEWLY passed KY State $5,000 tax credit for first time homeBUILDER(If Beshear signs it)
-$1062.00 a month after down payment


**If I buy a much more energy efficient house, I will save at least $20,000 over 30 years. It just seems to make more sense?

AM I MISSING SOMETHING or ANYONE HAVE ANY INSIGHT???

Originally Posted by WKYfootballguy

I am torn between buying or building a home?

We are going to be in the market shortly and I am really considering building a home all of the sudden. We are in the market for a 4br home in a neighborhood around 2300 sq feet. Here is what I have found...

Of houses on market:
-Average about $100 a sq ft or ($230,000)
-6 to 25yr in age of home
-Electrcity/Gas avg about $167.00 month
-5.3% mortgage rate
-Possesion in 60 days
-Don't qualify for $8,000 first time homebuyer federal tax credit
-$1182.00 a month after down payment


Building a home
-Custom build floor plan, nice upgrades for $90.00 per sq foot
-5 star tested/efficient by Touchstone/EnergyStar
-Electricity/Gas avg of $101.00 month
-5.5% mortgage rate
-7 months to build
-Qualify for NEWLY passed KY State $5,000 tax credit for first time homeBUILDER(If Beshear signs it)
-$1062.00 a month after down payment


**If I buy a much more energy efficient house, I will save at least $20,000 over 30 years. It just seems to make more sense?

AM I MISSING SOMETHING or ANYONE HAVE ANY INSIGHT???

I'm a build it kind of guy, but maybe someone a little older should answer this one.

Good luck either way.

If you buy a house, ontop of paying your mortgage, you will spend the next 30 years changing things in the house you or your wife want changed. This will be extra $ and you will never be satisfied.

If you build a house the way you or the wife wants it, you will be able to hold off 10-15 years before any major changes are done. You'll hold on to more $ longer.

No brainer- build.
Shouldn't take 7 months to build a house in this slow housing market though. You should be able to close in 3 or 4 months tops.

Originally Posted by Royal Uncle

If you buy a house, ontop of paying your mortgage, you will spend the next 30 years changing things in the house you or your wife want changed. This will be extra $ and you will never be satisfied.

If you build a house the way you or the wife wants it, you will be able to hold off 10-15 years before any major changes are done. You'll hold on to more $ longer.

EXACTLY...We are around 30 years old, no debt at all except our house payment, no kids yet...seems like a good time to do it! I did just get my own business, but it is secure even though I am just breaking even right now!

It just seems with paint, fixtures, etc...and the advances in energy efficiency it just makes sense!

Originally Posted by Ironlung

No brainer- build.
Shouldn't take 7 months to build a house in this slow housing market though. You should be able to close in 3 or 4 months tops.

The one's I have talked to say 5 months max finishing in late fall to winter, but I think 7 is the max it would take!

I am looking to do this in the next few years as well. I want to build simply for 2 reason. You can get pretty much exactly what you want and it is cheaper. The part you left out was buying land.

Originally Posted by HammerTime

I am looking to do this in the next few years as well. I want to build simply for 2 reason. You can get pretty much exactly what you want and it is cheaper. The part you left out was buying land.

As one who has done both, they are pluses and minuses on both sides. Building might seem less expensive and more attractive initially, but doubtful that will be the case; depending on your wants and interests. My new home was great, until I realized the price didn't include finishing the garage, the attic, basement, a decent deck/patio, minimal landscaping, etc. You can drop serious money on a decent deck, $40-50K on a basement, thousands on landscaping, many $$'s on finishing a garage, attic, closets, ceiling fans, etc.

I'd doubt (when you include the land) it's less expensive to build, but guarentee you won't find it less expensive when you consider finishing the basement, quality landscaping, etc. At least in our area, there are some real deals out there; that include many upgrades and extras that will cost significantly more in the long run. Throw in a mature neighborhood with some actual trees, other "finished" homes, and I think existing houses are the way to go today IMO!!

Originally Posted by HammerTime

I am looking to do this in the next few years as well. I want to build simply for 2 reason. You can get pretty much exactly what you want and it is cheaper. The part you left out was buying land.

Trust me you will forget many things (ask anyone whose ever built a home) and no way its cheaper to build right now, unless your doing much of the work yourself and have free land??

^ I do yes I meant just house wise, I wasn't talking land.

From advice I have received, 95% of people recommend purchasing instead of building. The "cost the same amount" sounds good on paper, but anyone ever worked with a contractor, builder, architect, etc. that completed a project within or under a budget and/or on time? Building a home involves a lot more than just laying down some bricks.

Obviously when buying a home, you are not going to have every single thing you want in it, but chances are the one you do build will not have everything you want either. There are a multitude of homes out there.

No way I build a house right now. Find a builder who has market homes he can't get rid of and get a sweet deal.

I like old houses in old neighborhoods...no way would I ever build. To me, you don't get any character in new neighborhoods or with a new house.

There are pros and cons of both. Last year, we went through the same thing. We initially were looking at building our own or buying something already out there. We ended up going with a builder in an established subdivision, and we couldn't be happier. With the deals they had going on at the time, we got a brand new house cheaper than any comparable house in the areas we wanted, but this was right before all the foreclosures started popping up.

As far as your estimated gas and electric bill of $101, where did you come up with that, unless you're going geothermal?

Building is a greaet idea but not feasible unless you have your own land and figure that the estimate is really just that, an estimate. A lot of other factors go into it and prices usually always end up higher than expected.

If this is your first home I would recommend looking at a lot of houses before hand. There are a million details that you have to think about when you build, so be sure you know exactly what you want/don't want. Going to open houses will undoubtedly give you ideas for when you plan your home.

I have lived in old homes most of my life. My current home is about 90 years old and I love it. However, it would be so very nice to start out with a fresh, brand new home with all new appliances, furnace and a new roof!

Originally Posted by HammerTime

I am looking to do this in the next few years as well. I want to build simply for 2 reason. You can get pretty much exactly what you want and it is cheaper. The part you left out was buying land.

Actually, the land is figured into the price of $85-90 a sq ft., in my area it seems like the builder buys a huge plot of land and gives you a break on the land.

Done both. Recommend buying. I understand your 30 year cost projection, but keep in mind, you will not be in that house for 30 years. Also, when building in a new subdivision, you have no idea what kind of neighborhood you will be in. When buying, you do know what you're getting as far as the neighborhood. I also found the building process to be very stressfull. Good luck

Originally Posted by nees1212

There are pros and cons of both. Last year, we went through the same thing. We initially were looking at building our own or buying something already out there. We ended up going with a builder in an established subdivision, and we couldn't be happier. With the deals they had going on at the time, we got a brand new house cheaper than any comparable house in the areas we wanted, but this was right before all the foreclosures started popping up.

As far as your estimated gas and electric bill of $101, where did you come up with that, unless you're going geothermal?

I am in the Owensboro area and utility rates are some of the lowest in the US, not just KY. Even with the increase that is suspected due to the wind & ice storms of the past year...with the advances in HVAC systems and windows, etc...I've seen past bills from 25 year old houses in same area and their utilities are much more.

Originally Posted by WKYfootballguy

I am in the Owensboro area and utility rates are some of the lowest in the US, not just KY. Even with the increase that is suspected due to the wind & ice storms of the past year...with the advances in HVAC systems and windows, etc...I've seen past bills from 25 year old houses in same area and their utilities are much more.

The reason I ask is that I have the same size house you're looking for, 4 bedroom, 2300 liveable square feet. I'm guessing that my average electic bill is around $180. We do not have gas, as that was an upgrade in our subdivision, which we didn't want based on current costs. I upgraded the insulation in the house from R13 to R15, not a big upgrade, but all I could go. All appliances are energy efficient too. And without gas, our monthly electric bill has been lower that our gas and electric bill at our old house, which was half the size.