Construct a home, how much cheaper is it in the end?

[Anonymous]

I can get land in Vienna/Oakton for around $350K (0.5 acres) or buy an old home for around $450K and tear it down. I want to know how much to expect in construction costs, let's say I opt for a 3 car garage home and decent options. I understand that construction costs can vary based on so many factors but what is the ballpark figure to assume before getting into it. I am assuming in the end getting it constructed has to come out cheaper than buying an old home. You would only get it constructed if it is either cheaper or you are getting a layout/design that you can't otherwise get easily. 3 car garages (4,500 to 5,500 sq ft) homes in this area sell for about $1 to $1.1M. Thoughts?

[Anonymous]

Our friends did it a couple years ago for $350k, nice, big, but basement unfinished.

[Anonymous]

Anonymous wrote:Our friends did it a couple years ago for $350k, nice, big, but basement unfinished.

wow seems low. How big was their house? It should be about $500000 for 5000 square foot house.

[Anonymous]

http://www.newdimensionsinc.com/ProductsGrid.asp?ProductSeriesID=EST&FormProducts_Sorting=5&FormProducts_Sorted=5&

[Anonymous]

Anonymous wrote:http://www.newdimensionsinc.com/ProductsGrid.asp?ProductSeriesID=EST&FormProducts_Sorting=5&FormProducts_Sorted=5&

Thanks. Interesting. It seems their best home is $360000 without basement. I am adding another $100000 for basement. So with all great options you can get this constructed for near about $500000. With land price at $400000, why would people not go with new construction. This seems to work out cheaper (at least on paper).

[Anonymous]

Not everyone can do it. To save money you have to do running around and numerous trips to county offices etc. Not a bad deal in the end if you can get cheaper land.

[Anonymous]

Why not?

Well, time is a cost.

So is renting something else while you're waiting for your home to go up.

And headache of dealing with a major long-term project and all the (financial, regulatory, personnel, etc.) problems that come with it.

Another thing to consider is all the 'little things' that add up. E.g., do you want vinyl siding on the house, or pressed wood or some sort of composite? What about windows--what kind? Etc.

Obviously, I'm talkin' out of my butt, as I don't have any actual experience with it. Just heard from friends who did substantial renovations.

If my father (who knows a great deal about basic household engineering) were overseeing the project, I'd probably be more likely to jump in. Me? I'd have no idea what sort of work needs to be (re)done and why.

[Anonymous]

You can probably save $150K but you sacrifice on the quality.

[Anonymous]

OP, hands down you will be so glad you knocked down instead of adding on piecemeal. Lets face it, if you were to ever sell, no way would you recover anything but a knock down price, even with many additions. But with a knock down - its a new house, and everyone wins - especially you!

Ask anyone that has invested their money so wisely as a knock down. The additions are a waste of time.

[Anonymous]

PP here - and a waste of money!

[Anonymous]

I can't answer OPs question but I wish we had considered buying a tear down and building instead of spending a lot on a 60 year old house that now needs some significant repairs (none of which were mentioned at inspection).

[Anonymous]

On the other hand, when I've looked at $1m+ new construction houses, the finishes are still builder grade. I remember at open houses seeing bathroom vanities with drawers already off the tracks in houses never lived in. If you were remodeling your existing, you'd never put in that crap. The windows are vinyl with the muntins inside the glass. Kitchen cabinets don't reach the ceiling, etc. All the interior doors came off the rack from Home Depot or wherever. Driveways are just poured. That's what you get if you're trying to do new construction at that low of a budget. Quantity of space over quality of finishes.

[Anonymous]

To 19:53 from 16:00 -- thanks, you made me feel a little better . Sorry to hijack!

[Anonymous]

Anonymous wrote:On the other hand, when I've looked at $1m+ new construction houses, the finishes are still builder grade. I remember at open houses seeing bathroom vanities with drawers already off the tracks in houses never lived in. If you were remodeling your existing, you'd never put in that crap. The windows are vinyl with the muntins inside the glass. Kitchen cabinets don't reach the ceiling, etc. All the interior doors came off the rack from Home Depot or wherever. Driveways are just poured. That's what you get if you're trying to do new construction at that low of a budget. Quantity of space over quality of finishes.

Sounds better than your 50s shit shack rambler

[Anonymous]

Anonymous wrote:

Anonymous wrote:On the other hand, when I've looked at $1m+ new construction houses, the finishes are still builder grade. I remember at open houses seeing bathroom vanities with drawers already off the tracks in houses never lived in. If you were remodeling your existing, you'd never put in that crap. The windows are vinyl with the muntins inside the glass. Kitchen cabinets don't reach the ceiling, etc. All the interior doors came off the rack from Home Depot or wherever. Driveways are just poured. That's what you get if you're trying to do new construction at that low of a budget. Quantity of space over quality of finishes.

Sounds better than your 50s shit shack rambler

Not exactly.... But if that makes you feel better about yourself, I'm going to let it go.