Build own House OR True Custom? (loan, custom home, buy)

[FueledByBlueBell]

Wondering if anyone has bought a lot and then managed the build from there. This can include building the house yourself and enlisting help where needed or engaging a builder on a true custom design? Curious as to experience, pitfalls, thoughts financing options and pricing. Would you do it again?

Thanks!

[FueledByBlueBell]

I'm also open to speaking with anyone with might know something about this, or if you know of a good resource (link, book ,etc.) that would help too.

[Moonlady]

We did it 15 years ago. Used a mom and pop builder - we had to do a lot ourselves including clearing the lot, getting permits and having the septic engineered and installed. We went through a conventional lender and got an interim loan for the construction (interest only) and then rolled that into a permanent loan. Overall, we were pleased with the results and saved a lot of money but it is a huge amount of work. I'll be happy to share any details or answer any questions...feel free to DM me.

The only thing that I didn't like was that there ended up being 2 sets of closing costs and that wasn't explained to us up front and was a bit of an issue.

[austin-steve]

Originally Posted by FuledbyBlueBell

Wondering if anyone has bought a lot and then managed the build from there. This can include building the house yourself and enlisting help where needed or engaging a builder on a true custom design? Curious as to experience, pitfalls, thoughts financing options and pricing. Would you do it again?

Thanks!

I've done this twice , in 2003 and again in 2007, custom homes on lots I owned. Thinking of starting another as my 2007 will be past the two-year capital gains exclusion in November, so I can sell it, take the profit tax free, and build another.

I used a custom builder both times. What do you want to know?

[FueledByBlueBell]

We are looking at 2 ac. lot that is around $200k, and isn't totally flat. In a perfect world we'd like to build a 4/3 with an office, living and a dining room. I'm not looking for a massive house, but something around 2800-3000 that is using space efficiently. I am also not looking for the basic off the shelf kitchen but something slightly nicer. I'm wondering what the end cost would be. We'd love to spend around $550k total, but if this isn't realistic then that is understandable.

[austin-steve]

If you can buy the lot for $100K or thereabouts, it's perfectly doable, provided there are no inordinate cost factors inherent in the sloping lot or getting a septic system in.

You could actually go up to 3300 sqft for very little incremental cost if you use the right floorplan. 3200 sqft to 3800 sqft is the sweet spot in large custom homes. It doesn't cost much less to build a 2800 sqft home. At current prices, with a fairly standard plan and finishout, you should be able to find a custom builder to construct the house for $110 psf give or take.

Then you just have to make sure that the homes in the area sell for more than the total amount you'll spend building the house.

Steve