Better to buy built home or get one built? (Cape Coral: for sale, buying a home)

[vaindioux]

Hi

We will probably relocate to Cape Coral. I have been looking at homes for sale online and found lots in our price range. But I don't know anything about getting one built ourselves (I mean a builder of course).
Some lots are fairly cheap in CC at around or below $10000, and there are lots of them. We would also want a screened in pool.
What are the pros and cons?

Thanks

Patrick

[PalmGuy]

Just don't get in a hurry. Perform your Due Diligence and put a pencil to it....

[NoSnow4me]

We looked at building, but decided against it due to the time it would take and the worry that we didn't fully grasp the magnitude of cost of the maze of permits, environmental regulations, etc. If you're in a position to absorb surprise expenses, I would think that it would be the best way to go. I concluded that the cost per square foot of building would be higher enough to make an existing home most attractive for our situation, but we had a heck of a time finding exactly what we wanted.


Take into consideration whether or not the lots have water and sewer yet. Ones that don't will eventually be charged an assessment when the city expands the service to that area. The best explanation I've seen regarding the cost is a few threads down.

Originally Posted by nhkev

the assessment in SW cape coral are based on the size of the lot regardless of what is on there for a house or it's value. Currently the assessments for water, sewer and irrigation are 10,600. but then there are capital improvement charges. I think these run $6000 but they were offering a cash up front discount of 20% if you paid the improvement charges up front bringing them to around $4200. Then there is the cost to hook up which is paid to a plumber , not to the city. Then there is the cost to "recover" the septic system. tank is pumped out (again not paid to the city) then the tank is crushed so it can no longer be used, probably a little bit of fill brought in.

You will hear all sorts of numbers thrown out there but the actual assessments are $10,600. the reason why it is important to separate is because I own a vancant lot. when the assesments come I will only have to pay the 10k I won't have to pay anything else until I decide to build. When you look at vacant land the cost to bring a well and septic is not that far off from what it cost to install city services. So for a vacant land owner I cannot wait until they bring utilities as it will instantly increase the value of my asset. Gulf access lots without city utilities are selling at huge discounts in comparison to those that have them.

[vaindioux]

NoSnow4Me

Wow thanks so much for the detailed post. So in fact I want a home that already built and already has city water and sewer, right?
I have another question: So I plan on buying a home with a vacant lot next to it to plant tropical plants and palms. Does that extra lot would need to have city water and sewer installed since there will be no home on it?

Thanks again

Patrick

[NoSnow4me]

That's hard to say. I'd have preferred to have a house built, but unexpected expenses would have been a problem for me if they were significant. Your situation might be different. I bought in nw cape, and don't mind that the assesments are coming, because I got a lot more house for the money compared to what I could get in areas that already have city water. What I wouldn't want to do is buy a lot without it, build a house with the expense of putting in a well and septic system, then have to pay the assessment some time soon on top of it.

All lot owners will have to pay for the utility expansion, so it will cost more if you buy an adjacent lot. I know some people buy multiple lots and turn them into one, so they can build their house in the middle of it and have a bigger yard. The cost of the assesment goes up with lot size, but I don't know if it scales linearly, making a 1/2 acre lot twice as expensive as a 1/4 acre lot.

[vaindioux]

NoSnow4me

Ok you make a lot of sense. I guess I will have some questions to ask the CC town hall about city sewer and water on an extra lot.

Thanks

Patrick

[nhkev]

Originally Posted by vaindioux

NoSnow4me

Ok you make a lot of sense. I guess I will have some questions to ask the CC town hall about city sewer and water on an extra lot.

Thanks

Patrick

If you buy the lot next to it and never improve it (plantings are fine) you will pay the assessments of $10,600 but that is it. anything else would only need to be paid if built upon. so in the situation of buying two and building in the middle you would pay for 2 because both are improved. I bought an existing house and the back lot. Even if you decided to sell in the future.. 10k for a vacant lot and adding 10k for assesments you would likely get that money back because a vacant lot with city utilities already paid assessments will be worth a lot more than 20k in the distant future.

[vaindioux]

nhkev

Excellent answer which clarifies the situation on paying for city water and sewer on a second lot.
I guess finding a home and an extra lot with city sewer and water already installed would cost more than one without it installed.

Thanks

Patrick

[LifeIsGood01]

If you can afford to build and have the time to wait it's better in my estimation.

[rikoshaprl]

Originally Posted by vaindioux

nhkev

Excellent answer which clarifies the situation on paying for city water and sewer on a second lot.
I guess finding a home and an extra lot with city sewer and water already installed would cost more than one without it installed.

Thanks

Patrick

If there is city water in the area you will have to pay for the assessment even if you are not hooked up to it.