House hunt or build in Asheville? (Henderson, Hendersonville: real estate, apartment, renting)
Western North CarolinaThe Mountain Region including Asheville
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Pretty soon I'll be dipping my toes into the housing search, and I was wondering if you might have any tips about house-hunting in Asheville or buying itself that you'd be willing to share. Is there anything that you know now that you'd wish you'd known when you were house hunting? I am looking within Asheville city limits, but I'd gladly accept counsel from anyone in the nearby area.
Some background that may be useful: I've been living in an apartment in downtown Asheville for over two years. My wife and I are now looking for a single-family house. We definitely want to stay within city limits but have a fairly modest budget. We both have good, stable jobs, but like many young people, not a huge amount of savings for a down payment. With the housing market as hot as it seems to be, however, I feel like our already small window of opportunity to stay within city limits is quickly closing. I'm gearing up for a bumpy, stressful ride.
One question I've been thinking about: do you think it's possible that building a home could actually be less expensive than buying one? For example, I recently came across the website for a local builder that seems to have a good reputation and whose style we like. According to their website, they can build a standard 2BR/2BA house for $130K. (We're interested in a 3BR/2BA—the builder says their templates are expandable—so let's say the total cost is $160K.) If I can buy a lot in a neighborhood I like for, say, $50K, that'd be $210K in house-and-land expenses. This seems to be quite a bit less than most of the 3BR/2BA houses of decent quality I've seen listed. Is this right? Am I missing something?
Building seems to be a pain in the butt, but if the savings are that significant, and it allows us some modicum of customization (not a lot; we're hardly the "dream house" type), it seems like it'd be a good option to consider. What do you think?
One question I've been thinking about: do you think it's possible that building a home could actually be less expensive than buying one? For example, I recently came across the website for a local builder that seems to have a good reputation and whose style we like. According to their website, they can build a standard 2BR/2BA house for $130K. (We're interested in a 3BR/2BA—the builder says their templates are expandable—so let's say the total cost is $160K.) If I can buy a lot in a neighborhood I like for, say, $50K, that'd be $210K in house-and-land expenses. This seems to be quite a bit less than most of the 3BR/2BA houses of decent quality I've seen listed. Is this right? Am I missing something?
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NO. Right now it is cheaper to buy than to build. The cost of building materials is pretty high. If someone says they can build for $130k ask for references and CALL THEM. Chances are this price wont give you anywhere near a custom home. It will give you a stock floor plan with very narrow choices of finishes. To get things the way you want, which is the point of building, will be upgrades and they will blow your budget.
I also first highly recommend that you talk to your lender before you do anything. You may not qualify for a construction loan and you may find that you have more loan options and better rates if you can get out of city limits. Talking with a lender is ALWAYS your first step. Then you know exactly what your parameters are you won't waste anyone's time looking at homes that you don't qualify for (and I am including YOUR time in that last sentence)
IMO the minimum cost to build almost any freestanding house is $140 sq.ft. That would be with zip siding, 2x4 construction, on a level lot, with an unconditioned crawl space. You would not have any custom choies.
The problem you would face in trying to build in Asheville City is finding a suitable lot. You would face intense competition with builders who are constantly searching for lots to build on. The contractors/builders network will have far more time and experience in finding a suitable lot. There are some rehab-able houses in West Asheville, but those face competition. The housing market in the City is tight.
Pretty soon I'll be dipping my toes into the housing search, and I was wondering if you might have any tips about house-hunting in Asheville or buying itself that you'd be willing to share. Is there anything that you know now that you'd wish you'd known when you were house hunting? I am looking within Asheville city limits, but I'd gladly accept counsel from anyone in the nearby area.
Some background that may be useful: I've been living in an apartment in downtown Asheville for over two years. My wife and I are now looking for a single-family house. We definitely want to stay within city limits but have a fairly modest budget. We both have good, stable jobs, but like many young people, not a huge amount of savings for a down payment. With the housing market as hot as it seems to be, however, I feel like our already small window of opportunity to stay within city limits is quickly closing. I'm gearing up for a bumpy, stressful ride.
One question I've been thinking about: do you think it's possible that building a home could actually be less expensive than buying one? For example, I recently came across the website for a local builder that seems to have a good reputation and whose style we like. According to their website, they can build a standard 2BR/2BA house for $130K. (We're interested in a 3BR/2BA—the builder says their templates are expandable—so let's say the total cost is $160K.) If I can buy a lot in a neighborhood I like for, say, $50K, that'd be $210K in house-and-land expenses. This seems to be quite a bit less than most of the 3BR/2BA houses of decent quality I've seen listed. Is this right? Am I missing something?
Building seems to be a pain in the butt, but if the savings are that significant, and it allows us some modicum of customization (not a lot; we're hardly the "dream house" type), it seems like it'd be a good option to consider. What do you think?
Thanks very much for your thoughts.
Taxes alone within the Asheville city limit could be a budget buster if you are on a limited budget. People with limited budgets should not, and may not be able to, get a construction loan to build. Will you be able to pay cash for a lot? It's going to come to the point in the Asheville future where tear-down will become popular. And yes, building can be a pain in the butt unless you are well aware of the pitfalls and building issues that come up during the process. Your figures are very low for building. Why not consider a fixer upper in a good location. It's all about location. You should seriously consider buying something from current inventory; and seriously consider building in an adjacent county to stay within your budget. If you live within city limits (in any county), you will pay both County and City property taxes. If you live outside of city limits, you will pay only County taxes. Both could amount to paying double. Young92 is giving you excellent advice as are others who know the building process thoroughly.
Thanks for the feedback, everyone. That's a really good observation, Imhere now—I am clearly no match against the professional eyes of builders and contractors. With a limited budget and no experience in building, construction, or house-buying, it seems like a bad idea to think I can find a suitable lot and build on it to satisfaction. Wishful thinking.
QuilterChick: point taken. Though, it's a complicated cost-benefit analysis. A house in the county may cost less, but if I live close to downtown (where both I and my spouse work), we may be able to get by with one car, or at least drive a lot less, have a shorter commute, etc. That said, finances are finances, so what we can cough up right now will ultimately dictate where we can move.
Thanks for the feedback, everyone. That's a really good observation, Imhere now—I am clearly no match against the professional eyes of builders and contractors. With a limited budget and no experience in building, construction, or house-buying, it seems like a bad idea to think I can find a suitable lot and build on it to satisfaction. Wishful thinking.
QuilterChick: point taken. Though, it's a complicated cost-benefit analysis. A house in the county may cost less, but if I live close to downtown (where both I and my spouse work), we may be able to get by with one car, or at least drive a lot less, have a shorter commute, etc. That said, finances are finances, so what we can cough up right now will ultimately dictate where we can move.
You will most likely have to pay cash for a lot, if you can find something buildable and within your budget. Sometimes builders already have lots that they own, but with the market on the upswing, they will sell both together for a bigger profit on a lot/house deal. I've built several houses, both as a single woman and married. As a Realtor, husband and I also speculated on a few that worked out very well. If you do get a construction loan, your lot will essentially be used as your down payment. But remember, you still have to pay that construction loan while you are renting; and most of the time, it is difficult to pinpoint a move in date. All state and county inspections have to be approved first, as well as the bank inspection prior to move in.
See if you can find what you like as a resale, make some profit, get some decent equity, and build at a later time. Good land always appreciates in value -- they aren't making any more of it.
We looked at finding a lot and building in the City of Asheville, after having built two houses in SWVA, about 2 hours away. We looked at lots with a Real Estate agent, but realized that we wouldn't be able to spend the necessary time dealing with all the related processes, survey, permits, plans, options, etc, even if we could find a lot we wanted. We did luck out in finding a house just under construction that we contracted for, for about 50K more than we had expected to spend. The market here is inflated, but we wanted to be in the city, after 30 years in a rural area. Now 3 miles to downtown. Two homes in our neighborhood sold last summer for asking price within a month.
We are hoping to move to the Asheville area soon. We are a set of grandparents that adopted two grandkids (disabled) and a girl from Russia, with same disability, helping our daughter who is in school fulltime so she an support her 3 girls.. They all live with us. So 9 moving down, but will be getting two homes. We however don't want to be in City limits due to higher taxes, and we want a minimum of 5 acres. We have a few years to go here before hubby retires again (lol) so we are looking for following criteria: 5+acres--small vacation rentable house-- within 20 minutes of City--rather look in clean area (don't want to drive past dumpy trailers and homes everyday) --workshop for me and my tools-- must have water ,,, river, bubbling creek, troutstream.. etc.. was looking at Hendersonville but am amazed with the crime rate there,, so thinking more the Royal Pines area, Weaverville, Black Mountain, Waynesville areas.. Daughter is the only one that will be looking for a job, she is almost done with school.. will be a Medical Lab Technician. Hubby and I are lucky, we will keep her daughters here with us, and she can stay here working until she finds a good job there, then we will bring her girls down after she sets up house. She wants a small house on a few acres as close to where we buy as can be..
We are hoping to move to the Asheville area soon. We are a set of grandparents that adopted two grandkids (disabled) and a girl from Russia, with same disability, helping our daughter who is in school fulltime so she an support her 3 girls.. They all live with us. So 9 moving down, but will be getting two homes. We however don't want to be in City limits due to higher taxes, and we want a minimum of 5 acres. We have a few years to go here before hubby retires again (lol) so we are looking for following criteria: 5+acres--small vacation rentable house-- within 20 minutes of City--rather look in clean area (don't want to drive past dumpy trailers and homes everyday) --workshop for me and my tools-- must have water ,,, river, bubbling creek, troutstream.. etc.. was looking at Hendersonville but am amazed with the crime rate there,, so thinking more the Royal Pines area, Weaverville, Black Mountain, Waynesville areas.. Daughter is the only one that will be looking for a job, she is almost done with school.. will be a Medical Lab Technician. Hubby and I are lucky, we will keep her daughters here with us, and she can stay here working until she finds a good job there, then we will bring her girls down after she sets up house. She wants a small house on a few acres as close to where we buy as can be..
Have you visited the area(s) within the past year or so? and can you let us know what your budget and housing needs are? Separately for each house? Everyone wants a trout stream, river or babbling creek.
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Good land always appreciates in value -- they aren't making any more of it.
