If you had $500,000 to spend on a home... (real estate, rent)

[amanda87]

would you buy resale or go through a builder (new construction)? Just curious?

[gmm_24]

Hmm hard question, we built this and I almost killed people during the process! I cannot type here what they called me, but I had to keep on top of them like little kids. They did the floor in the foyer wrong it was in two pieces and the pattern did not match and he hoped I would not notice it, worked for 3 hours- left for the day, painted a strip of the ceiling a beige color, why I have no clue, forgot to install the stopper for the tub, put brown tiles I did not order in the kitchen, it all had to be ripped out, and the list goes on and on!

If it is a really nice home, had a good yard, trees, nice patio, shed, fenced, etc etc I would buy an existing home.

If I had to build new again I would hold money aside for those extra things that do not come with a new construction. I would also have to take some meds to get through it

[Idunn]

It really depends.

The case for a resale is that in some cases you could end up paying less than if the same house built new. While possibly nothing will exactly match a buyer's wishes, in looking one might come close enough. Obviously advantageous for those wishing a turnkey move. If some remodeling is still desired, it can prove less troublesome than construction of a new home from scratch, if a fairly good fit to begin with.

Some downsides of a resale are that there probably will be a few things one would like to change, and may, or live askance with. Even with a competent prior home inspection, which is not always the case, one is to an extent always buying a pig in a poke; there is virtually no way to know in advance every idiosycrancy of a used house. Although hopefully one will be aware of possible major problems, such as with foundation, structure, electrical, plumbing, AC, etc. Generally the older the house is the more possibility of such problems, although some older homes were excellently built, while many newer are just this side of garbage.

One distinct advantage of building new is one can get exactly the house of their dreams, or at least as much as budget will allow. Moreover with some attention it can be better built than most houses extant. When it comes to siting, orientation, materials, construction quality, and most every other facet, most homes are lamentable. Just in function, in ease and livability, in use of energy, they could be far better. With a modicum of inspiration, the right architect, and determination (with money), one can do far better building their home themselves.

But it is a lot of work. Save for a few truly adept, most people will hire others to do the actual building. But it is still a lot of work. If not yourself, one should begin with a good architect, followed closely by a GOOD general contractor. Both are critical, however while an architect's plans can be reviewed by others, you are really dependent upon the honesty and capability of the general contractor. They oversee every aspect of the job, hire all sub-contractors, and will literally make or break your project. A capable architect may suggest some general contractors you may wish to investigate, as well as providing invaluable help with many facets of the project, such as choice of specific materials, etc.

Nevertheless, the final responsibility of such a project is invariably yours. You must know enough to insure that everyone hired is doing their job properly. Few people understand the myriad aspects of house construction, but one should have enough sense of it to know if all is progressing well or not. You will spend a seemingly inordinate amount of time overseeing this project in a variety of ways, in insuring completion, schedule, choice of all the many different materials, etc., even with a competent general contractor.

If building, some people opt for a standardized design, with possibly some changes of their own. Such changes may amount to no more than the options in flooring, etc. your builder will allow you. While such a project can result in a house rapidly built, since of a standardized plan the builder is familiar with, rarely resulting in truly unique or notable design. More of a compromise, if one is happy enough with that. Also, the quality of the builder is no less important, and it may prove more problematic in convincing them to make desired changes.

If building from scratch, with one's own architect and design, one has the blankest slate and greatest opportunity for a home truly loved. It is also the most work, if for no other reason than all the many options precluded in a standardized design must be considered, and there are oh so many of them. However the final result can be so very rewarding.

Another consideration, and really the first one, is location. A realtors say: location, location, location. And it is absolutely true. Nothing is more important in choosing a home. Most everything else can be changed, but not that. Here too there are a lot of factors to consider. Such as access, utilities, schools, possible noise from streets, airports, or neighbors, etc. Each will have their own priorities and preferences in that wished, but in each instance all should be considered carefully. If at all possible be on site personally night and day, and throughout the seasons to understand exactly what the location offers, in both good and bad.

It could be one might find the perfect location with a house already there. That can be changed, either in razing the structure entirely, or more possibly in remodeling it to some extent. Most anything is possible in this regard, limited only by inspiration and money. If extensively remodeling, then you may wish you had opted for vacant land and new construction instead. At some point older houses can be more trouble than they are worth.

We have our dreams. Exercise them, but when dealing with real estate also be pragmatic. You will in the end anyway, if only having to live with that ill considered. What you choose has not so much to do with what is there, but in one's dreams what they wish to live within. Consider well the final product, your home, and then how best to get there.

[David Aguilar]

resale ftw

[amanda87]

There is that third option which I was actually refering to of going through a new home builder who usually takes care of all that good stuff for you.. like Richmond America, David Weekly, etc. They have several floor plans to start with and you can customize from there.

Very thoughtful responses though, and yes if you tried your hand and designing, and hiring the help yourself - I can imagin that would be very stressfull! Would never attempt it! @Gmm_24 glad you made it through! lol I'm sure your final product was well worth it though!

[Mike from back east]

Originally Posted by amanda87

would you buy resale or go through a builder (new construction)? Just curious?

I could buy a home either way, it depends on the reputation of the builder.

We built a new house in COLO SPGS in 2005, paying about $550k, getting TONS of custom touches such as a larger range top, larger countertop, move a wall, put in a wet bar, etc. Got this from a "production" builder, but one of the better ones in COLO SPGS (Keller Homes). A lot of realtors here buy and live in a Keller house, they are solid homes, Keller people oversee every step, they use quality sub-contractors and we had zero problems with the house and zero problems since 2005.

There are other builders here who do fine work too, but too many people have told me to stay away from Richmond. We rented one of their entry level homes while awaiting construction of our Keller and it was basic/minimal stuff that had a number of annoying issues with the wiring, grading of the lot, etc. This was during the boom years and they were hiring so-so subs.

[CosmicWizard]

If I had $500,000 to buy a home, I wouldn't buy a home. I'd bank it and use the interest to help pay most, or all, of the rent on a smaller, less expensive home instead.

[Josseppie]

I think it would depend if you want to live in a older established part of town or a newer part of town.

[gmm_24]

Oh I did not hire them myself, I had a general contractor that was a flipping idiot!! I would have never hired the guys he did and wish I could have fired them all.
I made a list of the things that were wrong faxed it to him, then had to listen to him whine about how these guys are going to ruin his reputation.
Ask for references and actually check them out. He gave me two which I did call but then I found out later that they were "working" for him.

I will not even get into the warranty mess.

I did make changes to the original floor plan, added a mud room and things like that. But all the mistakes they made had nothing to do with the changes I made, those came out fine

Even if you build new in an HOA there are issues that come up, work can take longer then planned, you have to follow their house color rules and such. My friend went through that, hers ended up being 6 weeks behind schedule. Mine is thankfully in the country and I did not have to make sure my front door was only white or black, color of my roof, etc.

LoL looking back and rethinking this I am going to say buy a resale, save yourself the ulcer No really if you do new make sure it is all in writing, check references, and be prepared for setbacks, due to weather, possible lazy workers, them doing another job at the same time and so forth. It is like a wedding something/probably may go wrong like a drunk uncle, or a fallen cake and if you are prepared for it, it annoys you less, hopefully

[lalahartma]

I'd spend 150K and save the rest.