Building advice - what can we expect for costs? (Austin: 2014, mortgage)

[PAtoTX]

We are in the process of buying land and moving to a rural area outside of Austin. We have a few properties identified and will be hopefully closing on something in the next month or two.

What I'm trying to figure out is what to budget for building funds. We are planning on something around 2500 square feet, very open floorplan and two stories to keep the costs down and a master bedroom on first floor.

I've been talking with a custom builder in the area and have been very comfortable with him and the conversations we have had. I'm being told that if we target 200 sq/ft, we will be able to build a pretty high end home with the septic built into that sq/ft cost. If we are conservative we can expect to drop that price.

SO I'd like to get some feedback or advice on what to look for in costs, what should we expect for a range on cost per square foot and any other general tips on building.

Overall we are trying to target 650-750K for land, home and a pool. Just not sure what I can budget for the home if I spend 40-50% of our budget on land.

[hts]

$200/sq ft seems reasonable for what you're looking for.

I'm looking at lots in Dripping Springs for around $100k and have found a builder that can build to my finish out quality for closer to $165/sq ft for 3,300 sq ft, all on one level. My budget is $650k all-in (no pool) and I think it's doable.

[scm53]

I wouldn't discount one of the volume builder's "build on your lot program". I think you can build as nice as house as you'd like for $125/sq. ft, exclusive of lot and septic.

Just a thought.

[BriansZ]

Originally Posted by scm53

I wouldn't discount one of the volume builder's "build on your lot program". I think you can build as nice as house as you'd like for $125/sq. ft, exclusive of lot and septic.

Just a thought.

I'd have to agree with this. Looking at your post you have a max of $750k with 40% of that being land. Let's say you spend $250k for land, $425k for 2100 sq. ft. house, and $75k for pool. This puts you at $750k invested. What do you expect this house to appraise for once built out?

[LongTimeAustinite]

650000/2500 = $260/sqft

That's a very high dollar per square foot cost. Look at the comps in the area and see if that's what they are selling for. You may have to build a bigger house to get the dollar per square foot down or you run the risk of spending more money on building than what you can sell it for.

[texasgirl1]

The biggest cost factor will be the slope of your lot.

We are currently building a 3900 sq ft home. I'd compare the quality of our construction to a little above your higher end production builders (Drees, Highland) We are paying $120/sqft.

This includes 5 bed/4 bath...all stone, spray foam insulation,etc...We designed the floor plan. We picked out everything down to the hinges. Shop around with the builders...there is a huge difference in price per sqft in a builder that only does 3 homes a year versus ours which does about 40.

[PAtoTX]

Originally Posted by BriansZ

I'd have to agree with this. Looking at your post you have a max of $750k with 40% of that being land. Let's say you spend $250k for land, $425k for 2100 sq. ft. house, and $75k for pool. This puts you at $750k invested. What do you expect this house to appraise for once built out?

I have no idea what I expect it to appraise for when all said and done. This will be our final home we buy/build so as long as it appraises for more than I have in expenses I guess I would be OK with it.

[PAtoTX]

Originally Posted by LongTimeAustinite

650000/2500 = $260/sqft

That's a very high dollar per square foot cost. Look at the comps in the area and see if that's what they are selling for. You may have to build a bigger house to get the dollar per square foot down or you run the risk of spending more money on building than what you can sell it for.

When you add 10-30 acres to the equation it seems to fall in line with existing homes we see in the area.

[balor123]

Wow - that's a lot of money for 2500sf in a rural area! My experience has been that space needed is largely a function of location. 1500sf feels huge in Manhattan b/c you spend a lot of time enjoying the city. 2500sf will feel small in a rural area b/c you spend so much time indoors. I don't get why the lot costs so much in a rural area, where land should be cheap.

Anyway, according to this infographic, Gosset Jones Homes is a fast growing custom builder. Their homes look nice. You might inquire.

Appraisal does matter. There's lots of unanticipated reasons to sell homes. You could need assisted living. You might decide you hate the area. Perhaps you hate the home or it turns out to be built on a tar pit. Maybe a child needs emergency heart surgery and you need to mortgage it. Or at the end it might just mean less inheritance for your kids. You might regret losing $250k on it if you need it.

But, I don't really understand the logic of suburb/rural living so perhaps my advice is bunk. To me, being in the city and around other people is all that's important. I can only imagine the loneliness people must feel in those areas.

[LongTimeAustinite]

Originally Posted by PAtoTX

I have no idea what I expect it to appraise for when all said and done. This will be our final home we buy/build so as long as it appraises for more than I have in expenses I guess I would be OK with it.

If you have the cash and plan to live there forever the appraisal shouldn't matter to you that much. If you're going to the bank for the money though, it will have to appraise for at least the money they are lending you.

If you are allowing yourself 200/sqft to build a 2500 sqft house you'll be able to build a really nice house. Look out for the well though. They'll run you $20 to $30 per foot.