I am interested in a land property and I need to build my own home on it (Jamesburg: real estate, mortgage)
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I am looking at a land property in Jamesburg, NJ where the lot size available is 75 * 106 (unimproved). I have to get all connections, gas, electricity, sewer from nearby. There are neighbor homes in close proximity also.
I was looking at constructing a modern 3 bed 2+ bath home. I am flexible if its a ranch or colonial or any modern with open space architecture.
1. How much would each style cost approx?
2. Does mortgage company finance for lot only or both lot and building?
How do they estimate estimate building cost?
3. How time would it take to build one. Get all permits etc.;
Wow that's a big move. Last week you wanted to buy an overpriced old home in an old dumpy neighborhood and this week you want to build in a prestigious neighborhood almost 2 hours south? I believe the idea of building might be over your head and you should not do it. There are 10 million homes on the market right now, almost half a million alone just in New Jersey. Why put yourself through the stress of building a new home?
Also know that few if any lenders are making loans for owner/builder homes. If you search real hard you will find a lender who will work with a qualified builder that you have contracted with. But why bother? there are thousands and thousands of brand new homes on the market that are just sitting there and the Builder is offering his first born if some one would just buy it and put his finances out of its misery.
I know intimately the process building in NJ but without enough information and reading between your lines it would be much too much to post here.
Good luck in your home search.
Last edited by desertsun41; 02-13-2009 at 11:10 AM..
Reason: spell
2. Does mortgage company finance for lot only or both lot and building?
How do they estimate estimate building cost?
3. How time would it take to build one. Get all permits etc.;
4. Do you know a good builder?
way too much to discuss on this topic, I'd suggest doing a google search.
but, the basics:
1. conforming lot ? variances needed ?
hire a lawyer that specializes in real estate, to make sure it is indeed a buildable lot.
2. hire a General Contractor.
you could save alot of $$ by being your own GC, but unless you have the time & intestinal fortitude, don't.
3. consider Modular Construction.
it can cost less than half of what stick-built would cost.
4. cost & schedule
resign yourself to the fact that:
whatever you're told it will cost, when all is said & done, you will have gone 10% - 20% over budget;
whatever you're told is the completion date, add 1 - 2 months.
I had a house built last year because I simply could not find an existing one that I liked and could afford. With the right builder, it's not as daunting as it seems. Pick one you feel you have good chemistry with, one that gives you a detailed contract, and one that requires payments at various stages of completion.
Wow that's a big move. Last week you wanted to buy an overpriced old home in an old dumpy neighborhood and this week you want to build in a prestigious neighborhood almost 2 hours south? I believe the idea of building might be over your head and you should not do it. There are 10 million homes on the market right now, almost half a million alone just in New Jersey. Why put yourself through the stress of building a new home?
I know intimately the process building in NJ but without enough information and reading between your lines it would be much too much to post here.
Good luck in your home search.
When did Jamesburg become "prestigious"? lol
To the OP- your chances of finding a lender to provide you a loan to buy the land and build the house are slim to none- any bank is going to require you to own the land free and clear before they even think about providing construction financing. And the mortgage company doesn't estimate the construction costs- you (your builder) needs to provide them a cost breakdown of the anticipated costs prior to the loan approval.
With regard to construction costs, that's going to depend on whether you're building a 1,000 sf 3br house or a 3,000 sf 2br house, and also on the level of finishes/materials. You could easily spend anywhere from $75/sf to over $200/sf on the construction, and up to $30k just in permit/tap/impact fees.
The construction of the house should take somewhere +/- 6-8 months, and that's after 2-4 months of design and 1-2 months of permits/approvals.
To the OP- your chances of finding a lender to provide you a loan to buy the land and build the house are slim to none- any bank is going to require you to own the land free and clear before they even think about providing construction financing. And the mortgage company doesn't estimate the construction costs- you (your builder) needs to provide them a cost breakdown of the anticipated costs prior to the loan approval.
With regard to construction costs, that's going to depend on whether you're building a 1,000 sf 3br house or a 3,000 sf 2br house, and also on the level of finishes/materials. You could easily spend anywhere from $75/sf to over $200/sf on the construction, and up to $30k just in permit/tap/impact fees.
The construction of the house should take somewhere +/- 6-8 months, and that's after 2-4 months of design and 1-2 months of permits/approvals.
What you dont like Jamesburg? I though it was a kinda nice town.
Anyway about owning the land free and clear before a lender would look at you was true many many years ago in NJ. That is not a recent requirement from the mortgage crash days we have now, it's always been that way in NJ. I also seem to recall a local law whereby in NJ it is illegal to finance raw land. I can not recall the act or law written but sure do remember the road blocks we came across because of it.
Well it made sense to me to skip new brunswick. 60 percent of the pop may be below poverty line(earning 50k or less). Imagine how they must be eyeing my property , to get in , to steal. The townhome was awesome, open spaced, and very competetive priced. Was selling at 420 at opening in 2006. And now in low 300s. I still think its a great buy. If I do not find anything else , I may end up still buying at Fulton square. I have to deal with the playground next to it and fix windows if it gets broken LOL.
The lot property in Jamesburg, has a lake few yards from it....looked very pretty. The home won't have lake view, unless I build a two story custom colonial.
The selling price is 154k.
I saw a ad in craigslist where they are selling 3 bed 1.5 bath for a fixed cost of 110k includes all permits and approval). So I went wow, I could live in my dream home for 260k. And in a nice area close to park, lakes etc. I don't care about school districts as I don't plan to have any children. Adopt perhaps yes.
I saw a ad in craigslist where they are selling 3 bed 1.5 bath for a fixed cost of 110k includes all permits and approval). So I went wow, I could live in my dream home for 260k. And in a nice area close to park, lakes etc. I don't care about school districts as I don't plan to have any children. Adopt perhaps yes.
$150k for a lot in Jamesburg? No thanks. You may also want to see if the lot requires a septic tank or well, as some lots down there still do- those two items alone can cost you $30-40k.
I wouldn't hold my breath on the $110k all-in price you saw in the ad- especially if you saw it on craigslist. That's kinda like the "only $200/month" ads that the car dealers run, which only applies to one car on the lot that doesn't have air conditioning, a back seat or a radio.
Were you planning on adopting kids who are 18 years old and already finished with school? Otherwise your "I don't care about school districts because I'm going to adopt" theory doesn't make a whole lot of sense.
that land does not require septic tank. it has a public sewer connection which i believe the contractors can tap into.
they said they will do all that for 110k. i was bit unhappy over 1.5 bath part but heh for a starter home its not bad.
The area is indeed pretty. gotta see it to believe it. especially during fall. check craigslist.com for pics. i am not sure if its allowed to post real estate links over here or discuss pricing . Getting in to the game here.
Also Jamesburg is not 2 hours drive from new brunswick .. only16-18 miles. its sad not many people know about Jamesburg. there are pockets of bad parts in that city. but heh it has a beautiful park and lake.
Last edited by lets_hope_for_newbruns; 02-13-2009 at 08:31 PM..
Jamesburg isn't prestigious. Califon is prestigious.
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