Would you custom build today? (Colleyville: foreclosure, custom home, neighborhood)

[Jan08]

[SIZE=2]we recently had lost an opportunity to buy the pre-existing home of our dreams (or as close to our dreams as it gets - not that we wouldn't have wanted some changes) and we are once again exploring the option of custom building.

Reasons mainly are - we want something very specific that is hard to find, and we would like to buy exactly what we need and nothing more, and control what goes into the house.
This had been our original intention but we started looking at existing homes for the obvious reason that there are a lot of good deals out there right now and you can buy something existing for a fraction of the cost.

Plus rates are at an all-time low and we can take advantage of them now instead of gambling on what they will be in the future by the time a custom built home is complete.

So just wondering what the general thoughts out there are - is it nuts to go out there and build in today's climate?
Obviously at the bottom line we want to make a decision that makes the most rational sense and is not outlandish. We have been quoted $100 per square foot to build as a general ballpark figure. Obviously building a 3500 to 3700 square foot home with the cost of the lot will take us way above what buying an existing one would be.
But could the hidden costs of buying an existing home (potential upgrades to things within the house, minor remodels, etc) bring the number up enough to where building from scratch is not entirely outlandish?
Our plans are to stay in the home for 10-20 years (maybe forever? but one should always consider that possibility that they might move one day, just in case).

Would you custom build today and why or why not?
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[momof2dfw]

I would. We signed the papers last week to start an addition at our current house. We thought of buying or building but decided to stay where we are due to schools. I still would not hesitate to build the house I would want to the "t". It might end up being the better deal in the end over finding a house that needed a LOT of work to make it work for your family and you would not get any money out of the remodel. If the neighborhood doesn't call for it then it would really hinder selling it to recoup your expenses. Like we know that what we are going to build is not a well known "desire" for our area and price range. We are still doing it because in the long run it is less expensive (our house is almost paid for and the interest rate on it is SUPER LOW). We didn't want to "start over" and the price point of what we were looking at was double what we could sell our house for. So we are building and spending the money for something we know is more for US and not the buyer that we would eventually sell to on down the road (after they wheel me out of here on a stretcher with a sheet over me ). In the meantime we NEED the extra garage space and are willing to put the money down for it.

If your building something VERY specific or going to do a remodel that is VERY specific to your needs that is not a common expectation for the area....... you just have to realize that the expense for it is more to satisfy YOU than it is for potential buyers later on.

[Grainraiser]

Just be extremely carefull when selecting a builder. Custom builders are going belly up at record rates and you need to make sure they don't go belly up while your home is under construction. Make sure your builder has cash reserves and be very involved in the finances. I could write a novel on the amount of builders who left there customers high and dry.

[dixierambler]

If you truly want something that is "very specific and hard to find", you probably should consider custom built. Ballpark prices of $100 sq ft may seem reasonable for a 3500 to 3700 sq ft home, but are not "true custom" prices and may not give you the kind of control you want to exercise over your home. The $100 sq ft would be more in line with "semi custom" or "builder custom" where you select a plan from the builder, can make minor to moderate changes in the floor plan before work begins, are given a budgeted "allowance" for various items in the house, and can choose colors, but have little other input into the process.

If you want to control what materials are used, what sub contractors are used, think you will be making a lot of changes, or can't make decisions until it's crunch time, then you need the services of a true custom builder who can conform to your wishes and desires and can help guide you through the entire process. Just be ready to pay the price. A true custom builder cannot provide the kind of price breaks being given by tract home and semi custom builders because of the level of services offered. But you can recognize significant savings on your land/lot purchase now.

As far as buying existing and binging up to your standards, much depends on what you will or won't accept. It always costs more per sq ft to remodel than build new. So if a home is priced right, but will require a complete gut remodel, you will probably spend as much or more as a new home would cost. If the home has most amenities you are looking for, but requires a room addition and little else, you would probably come out ahead. Just get at least 2 estimates from a qualified contractor to look at any house you consider.

[Jan08]

Hmm, a lot in the area we would custom build is about 80K. If we build a 3500-4000 or so sq ft house (and that range I got WAS from true custom builders) we'd be looking at 430K-480K.
That in itself is already way above what you can buy a home in that area at that square footage for.

Now, if as has been cautioned here, the $100 per square foot may not even be enough, I kind of question then whether building will be wise. Not like we will build with the vision to resell anytime soon, but one still has to consider such things. We will be a paying a LOT more for that home than for what we can find for that money right now.

[debtex]

$100 a square foot is just not accurate...for truly custom and more than builder-grade fixtures, you're more like $200.

[loves2read]

rule of thumb is just not going to work for this--
first of all--do you even have the lot you want to build on--

THAT is the most difficult part of initial building process, that and finding a contractor who is honest and financially stable enough to stay in business...

in order to know if you are getting fair bids from the subcontractors you need to have your plans and they need to be so specific that you know the parts numbers for the light baffles, and all the other minutia that goes into building a house--from the foundation to the roof...
do you? cause putting that together can take 6-12 months...

the worst decision is to jump into something like this w/o making your plan of action and KNOWING what you want--changing your mind after you start is receipe for disaster and doubling your costs...and thinking that you can just decide to build for $100 a foot and make your choices as you go are just not possible...
everything depends on the design--the design depends on the land and restrictions/building codes for that area and what you want in a floorplan that you an afford...

if you want to build in a neighborhood--you won't get the developer to sell you the lot usually

if you buy raw land where would that be--have you priced it--is there any available...
when we tried to do custom build couple of years ago--that was the make or break--
good land in good location where you are not next to a trailer park or feed lot, busy highway, railroad tracks, or whatever negative there might be--that is the tough part...
and raw land close to town is still expensive--people are just waiting out the slowdown--they are not giving up on making a profit...

for someone who has no experience/background in construction--who has a full time job already--building a house can be one of the biggest headaches in the world--
and anyone who has done it will tell you that they spent 25-50% more than what they anticipated...

if what you posted about building/paying way more than what houses are selling for in the area nowis true then that is just not smart...
99% of the people who would be looking in that area if you go to resell are NOT going to be looking at your house...
we know builder who bought lot in developed neighborhood in Colleyville--nice neighborhood--some homes are 4500 sq ft--
it had tennis court on it because home owner had bought double lot--he went bankrupt--house was sold by foreclosure and our friend bought the tennis court lot--built very nice 4200sq ft house w/pool on it--a custom home--very pretty--but the value of the house has been dropping every year because of the values of the houses in the neighborhood dropping in this economy--they plan on selling this spring (if they can) after fulfilling the cap gains tax period so that he can get his profit out--but that profit has shrunk since the house was built 2 yrs ago

be very wary of building home that is too far above or below your neighbors...

[momof2dfw]

Originally Posted by Jan08

Hmm, a lot in the area we would custom build is about 80K. If we build a 3500-4000 or so sq ft house (and that range I got WAS from true custom builders) we'd be looking at 430K-480K.
That in itself is already way above what you can buy a home in that area at that square footage for.

THAT I would NOT do. NO WAY!!! It doesn't matter if you never plan on selling in this lifetime...... I would NOT over build in an area THAT much.

[Jan08]

well, I probably do need to clarify that there is a huge range for what homes are selling for at that square footage in the area just depending on what they are. There will certainly be homes at that price range in the area. Just that, obviously custom building, one is paying top dollar and in today's market, there is no way you can make back your money of you were to try to sell the home any time soon.

[SouthernBelleInUtah]

I actually prefer houses that are at least 10 yrs old. No guarantee the foundation won't sink, but most kinks have been worked out. My current house is 88 yrs old and is VERY solid. I bought it at a good price and did a thorough remodel - and I have exactly what I want.It's not over-priced for the neighborhood, either. Also, builders in older times built less to make a huge profit and more to make a good product.

What you are talking about, over-building the neihborhood, just doesn't make sense.