My husband and I are getting ready to retire and move into our long term retirement home. We’re debating buying a lot and doing a custom build, vs. purchasing a new construction.
What factors determine the budget of a new build? We’re debating between a few different locations (Oregon, Texas, or Tennessee possibly), with cost being a big concern. How should we adjust our budget across locations? How consistent are labor and materials costs?
What are the other pros and cons to consider?
Karen,
It all depends on what, where and how you are building the house.
Realistically the cost to build a home from scratch can range about 1/4 or 1/2 of the intended property value listing after the build.
Hope that helps you.
Different locations = different pricing. Calculate your budget prior to picking a location that way when you start looking, you look based on your budget. You never want to start a remodel then realize you do not have enough to finish the project. Tennessee, Oregon and Texas are awesome places to build!
Sincerely,
Joshua K
This is very hard question - I will try to answer it and simplify it as much as I can.
There are many parties involved in new construction:
So many things, sometimes before you start to build you will be close to 100k in cost, sometimes more, depending on the county. For this reason, I would always recommend to buy a very old house tear down that already has all the connections and systems, leave 1 or 2 walls, and build the new house as a remodel. That requires an experienced contractor and planner. The main thing you should remember is it’s all about where you going to buy.
So it changes based on the area you are choosing. If you want, I can answer and be more specific. If you tell me where you are planning to do it, I will give you all the pros and cons.
Thanks
Great question Karen.
There is a lot of factors I don’t know. I’m a contractor here in Texas I can speak for our area. The average cost of new Constrution single family home is around $150 a sq ft. (Land and house). The average cost to go with a independent builder would be around $130-$140. (Land and house). These numbers would be for the same size house in the same market.
The cost of living and construction varies across the US. You can’t compare a 2000 sq ft house here in Texas at let’s say 300k vs the same exact house in Oregon.
As far as the pros and cons, I’ll give you my personal thoughts for both custom built homes and a “track home” (new construction in large quantities):
Custom built homes
Pro - You really can design your dream home and have everything the way you want.
Con - They typically take a little longer to build.
New construction pre built.
Pro - no wait time the house is built and ready to move in.
Con - depending on the builder, your options are limited.
At the end of the day, my best advice would be to enjoy where you spend your retirement time and have a budget for your future home that you feel comfortable with and see which state gives you the most bang for your buck, both with your new home and lifestyle.
It can vary. Depends on if it is on a hillside or flat, and also what type of style and fixtures you are using. A lot of variables…
As a builder, I would say build a custom home because you get many of the things you want your way, within your budget parameters of course…as a consumer I would recommend the same because you can control your costs more effectively.
When buying a newly constructed home, the contractor’s profit and overhead is already in the numbers. When building from scratch, you can negotiate better deals and depending on your particular market, labor can come at a premium.
My best advice is to interview a few reputable builders and get an understanding of their relationships with their subcontractors, making sure that this “Team” is fine-tuned and capable of delivering results in a timely manner because time is money…
In closing, I will tell you your interior finishes such as kitchen cabinets and overall design, your bathrooms, and flooring are all major influences on the overall cost of your project and will definitely affect your budget. Realistically your mechanicals are costly as well. Labor differs from state to state and materials do as well. GOOD LUCK!!!
Sincerely,
David Gibbs. Gibbs Construction Services Inc., Brick, NJ
The cost to build your house depends on many factors but you should start budgeting anywhere from $175 - 375 per square feet, depending on your final selections and area.
