Does building your own house save money?

littlehousevalley · 09-19-2009, 07:00 AM

My husband and I have recently seen a slight upswing in our local real estate market. This isn't good for us, because our goal is to purchase a house within the year.

Has anyone purchased land, then built their own house? Is this cheaper? I have found a couple of lots not too far from our neighborhood that are reasonably priced. I've also found some prefab homes and house plans that aren't too expensive to build. Am I leaving out expenses that I don't know about?

Any info is helpful.
thanks,
Little House
http://www.littlehouseinthevalley.com

tenten · 09-20-2009, 02:17 AM

First off, congratulations on achieving the American Dream.

I don't have any personal experience in the matter, but I think there might be hidden costs involved in dealing with permits, zoning laws, unscrupulous contractors, etc.

Contractors who don't finis on time is a running joke I hear about all the time on TV (Murphy Brown) and in real life. Maybe things are better now, though, given that the economy has put so many homebuilders out of business.

Kasey1 · 09-20-2009, 04:37 AM

yes.[img]http://www.*********.com/img/4673/n09x0302vnsn/clear.gif[/img]

littlehousevalley · 09-20-2009, 10:11 AM

Thanks for the tip about contractors who don't finish on time. That's partly my concern. Some sites I've found with house plans give a ball-park estimate of building a particular model. I always go with the highest price. But, living in SoCal, I worry that builders try to eek out as much money as they can and take longer than expected.

thanks for the comment, it give me more stuff I need to research-
Little House

littlehousevalley · 09-20-2009, 10:13 AM

Quote:

Originally Posted by Kasey1

yes.[IMG]http://www.*********.com/img/4673/n09x0302vnsn/clear.gif[/IMG]

Does this mean it's cheaper to build a house than purchase one that is already built? Or, does this mean I have a lot of other expense to factor in, and it really is just a wash? Just curious, especially if you have personal experience in this.

thanks-
Little House

calicocash · 09-20-2009, 01:12 PM

You can save a ton of money if you do the work. I don't know if you are able to do that though. I know I sure couldn't.

Xin Lu · 09-20-2009, 06:16 PM

It really depends on what you're planning to do I guess. From what I read a lot of foreclosed homes are selling for below replacement value right now, and that means it costs more to build it. It is definitely possible to find a house that is already built and save a lot of time and money, too.

tenten · 09-21-2009, 12:47 PM

Xin did a whole bunch of CA real estate posts. I'm sure she knows what she's talking about.

Two other great places to find real estate specific advice:

Redfin.com and City-data.com.

trustno1 · 09-22-2009, 04:09 AM

Quote:

Originally Posted by littlehousevalley

Am I leaving out expenses that I don't know about?

Any info is helpful.
thanks,
Little House
http://www.littlehouseinthevalley.com

Yes, about a hundred of them, lol.

Your question is sort of like a fan going to a professional football or baseball game. It looks like a great way to make money, so they decide to buy some land, some chalk, a line striping machine and try doing it.

Could I do it? yes. Have I done it? yes.
Was my father a builder/developer? yes.
Did I work for him and learn the business and all of the technical & physical skills required? yes.
Could I make money doing it again. probably.

If I buy some land and a football, could I be a successful player? probably not...

littlehousevalley · 09-22-2009, 03:18 PM

Thanks Xin for the information about foreclosures. You're right, I have been checking Redfin and Zillow, and homes are much more affordable right now. However, what I'm finding, and am disappointed by, is the dilapidated state they are in. Which is why my husband and I started talking about building our own home. Some of the foreclosures in my area need so much work, I kind of thought we needed to think "outside the box."

However, I guess I need to keep looking. I might find a gem that doesn't need to be bulldozed!
thanks again,
Little House

09-19-2009, 07:00 AM	#1
littlehousevalley Member Join Date: Aug 2009 Posts: 38 Thanks: 17 Thanked 1 Time in 1 Post Reputation: (11)	Does building your own house save money? My husband and I have recently seen a slight upswing in our local real estate market. This isn't good for us, because our goal is to purchase a house within the year. Has anyone purchased land, then built their own house? Is this cheaper? I have found a couple of lots not too far from our neighborhood that are reasonably priced. I've also found some prefab homes and house plans that aren't too expensive to build. Am I leaving out expenses that I don't know about? Any info is helpful. thanks, Little House http://www.littlehouseinthevalley.com

09-20-2009, 01:12 PM	#6
calicocash Junior Member Join Date: Sep 2009 Posts: 7 Thanks: 1 Thanked 1 Time in 1 Post Reputation: (11)	You can save a ton of money if you do the work. I don't know if you are able to do that though. I know I sure couldn't. __________________ My Blog on freebies and hot deals. http://www.calicocash.com

09-20-2009, 06:16 PM	#7
Xin Lu Wise Bread Blogger Join Date: Jan 2008 Posts: 441 Thanks: 0 Thanked 3 Times in 3 Posts Reputation: (92)	It really depends on what you're planning to do I guess. From what I read a lot of foreclosed homes are selling for below replacement value right now, and that means it costs more to build it. It is definitely possible to find a house that is already built and save a lot of time and money, too. __________________ The Baglady @ http://baglady.dreamhosters.com Wise Bread @ http://wisebread.com/xin-lu Following me @XinLuDJ

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09-20-2009, 02:17 AM	#2
tenten Junior Member Join Date: Sep 2009 Posts: 20 Thanks: 4 Thanked 3 Times in 3 Posts Reputation: (13)	First off, congratulations on achieving the American Dream. I don't have any personal experience in the matter, but I think there might be hidden costs involved in dealing with permits, zoning laws, unscrupulous contractors, etc. Contractors who don't finis on time is a running joke I hear about all the time on TV (Murphy Brown) and in real life. Maybe things are better now, though, given that the economy has put so many homebuilders out of business.

09-20-2009, 04:37 AM	#3
Kasey1 Junior Member Join Date: Sep 2009 Posts: 3 Thanks: 0 Thanked 0 Times in 0 Posts Reputation: (10)	yes.[img]http://www.*********.com/img/4673/n09x0302vnsn/clear.gif[/img]

09-20-2009, 10:11 AM	#4
littlehousevalley Member Join Date: Aug 2009 Posts: 38 Thanks: 17 Thanked 1 Time in 1 Post Reputation: (11)	Thanks for the tip about contractors who don't finish on time. That's partly my concern. Some sites I've found with house plans give a ball-park estimate of building a particular model. I always go with the highest price. But, living in SoCal, I worry that builders try to eek out as much money as they can and take longer than expected. thanks for the comment, it give me more stuff I need to research- Little House

09-21-2009, 12:47 PM	#8
tenten Junior Member Join Date: Sep 2009 Posts: 20 Thanks: 4 Thanked 3 Times in 3 Posts Reputation: (13)	Xin did a whole bunch of CA real estate posts. I'm sure she knows what she's talking about. Two other great places to find real estate specific advice: Redfin.com and City-data.com.

09-22-2009, 03:18 PM	#10
littlehousevalley Member Join Date: Aug 2009 Posts: 38 Thanks: 17 Thanked 1 Time in 1 Post Reputation: (11)	Thanks Xin for the information about foreclosures. You're right, I have been checking Redfin and Zillow, and homes are much more affordable right now. However, what I'm finding, and am disappointed by, is the dilapidated state they are in. Which is why my husband and I started talking about building our own home. Some of the foreclosures in my area need so much work, I kind of thought we needed to think "outside the box." However, I guess I need to keep looking. I might find a gem that doesn't need to be bulldozed! thanks again, Little House