Opinions on buying acreage and building two separate homes on it (concept home, construction)

[SquidneyGee]

Hello,

My husband and I have always wanted to build a home. We currently live in a nice one bed apartment, but we would like an upgrade so we can garden and have chickens again. In our area, homes with no property average $600-$800k and go up from there. We really don't want to settle for a small 600sq ft condo for $300k either, we have lots of hobbies that take up a good amount of space (studio photography, painting, sewing and crafting garments...). We want a home for ourselves and a second home for my mother and stepfather.

Obviously we would want this to be or "forever home" but since everything might be sold eventually... would a standard stick built home and a manufactured home on the same acreage be an enticing opportunity for buyers? My husband and I's home would be around 3bed/2bath 1600-1800 sq feet with a manufactured two car garage, a 20'x20' studio shed, 6'x8' garden shed and .5 acres of yard. My parents I am thinking would get another .25/.5 acre and their own 2bed/1bath 700 sq ft manufactured/mobile home, we would like privacy hedging between our two units (love them to death, but we all need our space!). I don't see this type of setup too often, usually if a home has a second building its a standard built 500 sq ft MIL unit, often attached to the main home or very close to it.

Any potential issues with having two homes of different build types on the same acreage?

Has anyone heard or used house plans from Concept Home? We found a few plans that fit our needs, but are surprised the types of homes are so inexpensive to build, often starting at $130k for a 1600 sq ft home. We want to alot a good buffer for changes to the plans.

When we get further down the line of process I plan to talk to professionals in the area. I wanted to do research before hand to see if this idea is even a realistic concept.

[JayCT]

First I have never heard of new construction being less expensive than existing. Even manufactured homes are not cheap unless they are poorly constructed. Be sure you make a budget that accounts for all costs including land, the house, site work and utilities.

Whether you can put two homes on one lot or not is a zoning question. You would have to check local zoning laws before you buy.

It sounds like you live in a very pricey area so land to build on, particularly land large enough for two houses. A local agent should be able to help. Talk to the local building department before buying anything. Sit with a couple contractors too in order to get their take on this.

I looked at the Concept Homes website and do not think their cost estimate is accurate at all. It likely does not include things like land, site work, utilities or appliances. Because it says the cost is “from”, it means it starts at that price in the cheapest part of the country. In your area it is likely going to be a lot higher. Again I suggest you talk to a good local builder. Good luck, Jay

[harry chickpea]

It might cost more, but consider buying adjacent lots separately, and keeping them unentangled financially. The parent home might be eligible for tax breaks, the deed could list you as having right of survivorship, and if one of the properties was a burden it could be offloaded without affecting the other.

I live in a manufactured home and like it, but in your situation I would do stick built for both for a number of reasons, not the least of which is resale value.

JayCT is fully on-target. I urge you to follow his advice. You are in for some shocks on costs of new construction and all it entails. You are asking good questions though.

[mrpeatie]

Depending on zoning you may need the MIL apartment to be attached to the house- either immediately attached or attached by a breezeway- if you can only build one building on site. Sometimes they might not even allow the two to function separately depending on zoning and covenants. That is when Chickpeas first scenario can be a necessity.

In my area, getting any new single family home below the $100 per square foot in construction cost threshold can be next to impossible. There are so many set costs you pay just to put up anything- water/sewer tap or pump and septic; providing pavement or a path from the road; the kitchen, laundry, and first bath; bringing utilities on site; roof and foundation, etc. And that would still not account for land. Its also easy to spike your construction $10-30 per square foot simply by upgrading finishes. And upgrading siding, roofing, and windows/doors can spike it yet again.

I am assuming 130k for 1600 sf is a low cost of living area and a simple floor plan with basic finishes. A good way to see what housing will cost is look at what a company such as DR Horton or Lennar is charging for a similarly sized home, on a slab, and with base level finishes. Those companies have maximized efficiencies and aside from an amenity center and entrances are typically not throwing any extra money away. They'll have also got major discounts by reusing the same materials and appliances over thousands of houses and the cost savings of being able to engineer the construction and materials themselves. If you can figure out their per square foot cost (without land) and add an additional 20% that is where you are probably going to start.

[zach_33]

Based on your self-reported location, Bellevue and other (nice) areas in greater Seattle are very/extremely expensive. Are there other areas in metro Seattle you have considered? Olympia, Everett, and Tacoma areas are supposedly less insane price-wise. I still don't know if there are land-build opportunities in those areas, but they would have to be easier and less expensive than Bellevue (right?).

[SquidneyGee]

Thanks all for your very helpful insights.

To break it down, a similar house size in bellevue to what we want to build (1500-1600 sq ft) is 800-900k, with no land and no MIL unit. I'll add in the excel spread sheet I used for estimates. We are looking at property in the Renton highlands and Issaqua areas, on Zillow a few come up with access to utilities in the street.

180 k for property 2-5 acres (170 for property 10k for preparing it)
40 k base for mom's house (mobile) 500sq ft 1b1bath
8 k garage shed for car
15 k permanent foundation for mobile
10 k setup/installation/delivery for mobile
6 k HVAC for mobile

190 k for our house (stick built) 1500-1600 sq ft
10 k septic
10 k well
15 k Two Car Garage (tuff shed - type) (optional)
8 k permits,Utility Connection Fees, plans
15 k misc

507 k total

After looking at mobile home costs from Fleetwood and similar brands, they all have mobile homes starting from 35-50k, many of them include the delivery and setup fee in the cost of the home. My mother and stepfather and said they would be very happy in a tiny 500 sq ft unit, they're used to living on boats and are currently in a trailer home.
I did a few mortgage calculators to see if this is affordable for both of us, and it is, it comes out to about a $2500-2700 after all the taxes, insurance, and such, split between two parties is not bad for what you get (assuming my estimates are reasonable).

I contacted concept homes and asked if their plans include a slab foundation, and it does. When I used a completely different website to calculate the home cost it comes out at $230k with septic, a propane tank, and a well. So it looks like I am not too far off with my calculations?

Thanks again.

[JayCT]

Originally Posted by SquidneyGee

Thanks all for your very helpful insights.

To break it down, a similar house size in bellevue to what we want to build (1500-1600 sq ft) is 800-900k, with no land and no MIL unit. I'll add in the excel spread sheet I used for estimates. We are looking at property in the Renton highlands and Issaqua areas, on Zillow a few come up with access to utilities in the street.

180 k for property 2-5 acres (170 for property 10k for preparing it)
40 k base for mom's house (mobile) 500sq ft 1b1bath
8 k garage shed for car
15 k permanent foundation for mobile
10 k setup/installation/delivery for mobile
6 k HVAC for mobile

190 k for our house (stick built) 1500-1600 sq ft
10 k septic
10 k well
15 k Two Car Garage (tuff shed - type) (optional)
8 k permits,Utility Connection Fees, plans
15 k misc

507 k total

After looking at mobile home costs from Fleetwood and similar brands, they all have mobile homes starting from 35-50k, many of them include the delivery and setup fee in the cost of the home. My mother and stepfather and said they would be very happy in a tiny 500 sq ft unit, they're used to living on boats and are currently in a trailer home.
I did a few mortgage calculators to see if this is affordable for both of us, and it is, it comes out to about a $2500-2700 after all the taxes, insurance, and such, split between two parties is not bad for what you get (assuming my estimates are reasonable).

I contacted concept homes and asked if their plans include a slab foundation, and it does. When I used a completely different website to calculate the home cost it comes out at $230k with septic, a propane tank, and a well. So it looks like I am not too far off with my calculations?

Thanks again.

You keep comparing what you want to build to homes in Bellevue but you are building in another town. Home prices are lower in Issaqua and Renton Highlands. That would be a better comparison.

I am not sure your cost estimates are accurate. I would double the septic system and site preparation costs. I also think the stick built home price is very low. Permits and connection fees maybe off too. You should sit with a knowledgeable contractor who can give you more realistic numbers based on first hand knowledge.

And again you need to check local zoning regulations to be certain your idea is possible. The community may not allow it. Jay

[SquidneyGee]

Originally Posted by JayCT

You keep comparing what you want to build to homes in Bellevue but you are building in another town. Home prices are lower in Issaqua and Renton Highlands. That would be a better comparison.

I am not sure your cost estimates are accurate. I would double the septic system and site preparation costs. I also think the stick built home price is very low. Permits and connection fees maybe off too. You should sit with a knowledgeable contractor who can give you more realistic numbers based on first hand knowledge.

And again you need to check local zoning regulations to be certain your idea is possible. The community may not allow it. Jay

Hi Jay,

Thanks, I know the surrounding areas have cheaper single family homes on no land.

Even doubling the septic and site still lands in a pretty good budget for what we want. So I am glad this idea is at least possible. I will contact builders and get a better range of prices.

[JayCT]

Originally Posted by SquidneyGee

Hi Jay,

Thanks, I know the surrounding areas have cheaper single family homes on no land.

Even doubling the septic and site still lands in a pretty good budget for what we want. So I am glad this idea is at least possible. I will contact builders and get a better range of prices.

Uh, I think I said that more than the septic and site work was low. I said the cost of the stick built house was low too as well as permit and connection costs. Again sit with a contractor to develop a real budget. Good luck, Jay

[MidValleyDad]

I'm curious about the line 'on no land' Do you mean a small lot that has hardly any space around it or do you mean literaly that you own the house but not the land underneath it?