Would you mind sharing how much you had saved for BUILDING your home?

posted 7 years ago in Home
Post # 3
Member
14494 posts
Honey Beekeeper
  • Wedding: June 2011

I am in Omaha, and things are relatively inexpensive here compared to the rest of the country.  We planned for $150,000 but that doesn’t include the friends that will do stuff for us for nothing, which would prob run another $50,000 if we didn’t have them. 

Post # 4
Member
662 posts
Busy bee
  • Wedding: April 2012

We had 10% of the total amount we were borrowing saved.

Post # 5
Member
867 posts
Busy bee

At least where I live, you need more money down to build a home than buy an exisiting one.  This is the fifth house I have bought – I move a lot for work and I have built and bought existing ones.  Most builders require 20% down in cash before they will start building and I even worked with one who had incremental payments as the building progressed to essentially 40% down.  Keep in mind this was seven years ago when the real estate market was hot and demand was much greater than supply for new construction.

When buying an exisiting home if you don’t have 20% down in cash most mortgagers will require that you get PMI – primary lending insurance which adds about 2 -5% to your monthly payment and protects the lender if you fault on your mortgage.  

By no means am I a financial advisor and I would definitely encourage you to go talk to one but sharing my experience since I have purchased and sold too many houses.

Post # 7
Member
7311 posts
Busy Beekeeper
  • Wedding: October 2011 - Bed & Breakfast

I don’t know about other states, but friends here in MD looked into buying a lot and building on their own (in other words, not building within an existing development), and they were required to own the land outright (no leins) before a building could be constructed on the site. They would have spent years owning an empty plot of land just so they could pay it off before ever breaking ground on their home. So you may want to check into the requirements in your area.

Post # 8
Member
1944 posts
Buzzing bee
  • Wedding: June 2009

I’m in Ohio and we bought our land first and had no money down. There were things we paid for with cash like electricity lining and hookup but in total we built our home for $165,000. With 5 acres and an after building appraisal, we can sell it for at least $235,000. 

 

Edit: To help, my home is 2300 square feet, 4 bedrooms, 2 1/2 baths with basement to be finished and 2 story. Plus we have all upgraded flooring, faucets etc. 

Post # 9
Member
363 posts
Helper bee
  • Wedding: May 2012

We looked at both options when we purchased our home (both are within a subdivision). The main difference we saw was that on top of the down payment you need you most likely have to come up with the closing costs on your own as well. However ,if you purchase a purchase a home from an owner you can usually have them cover that. For us it didn’t make a big difference, but our house is only 2 years old and we got it for less than we could build it for.

I think it depends on the area and where you are building, but there really shouldn’t be unexpected costs associated with it unless you add upgrades later on. Usually, you go into a contract on the floorplan and lot prior to making all of your selections (which can add up).

Post # 10
Member
984 posts
Busy bee
  • Wedding: April 2010

We built with a company and we put 3.5% down on our build as an FHA. The really nice thing is that our builder allowed our deposit, application fees, upgrade deposits to be part of our down payment. These were all done over the course of 6 months so it didn’t seem too much like a hit in the wallet.

Post # 11
Member
5670 posts
Bee Keeper
  • Wedding: August 2010

I haven’t built my own home but I am surrounded by everyone in the construction business so I hope to be able to soon.

Our biggest issue is land. Is land expensive and/or hard to find where you live? It is generally less expensive to build your dream home than buy if you can get the land. Darling Husband and I dream and would like a 5 bedroom + office, media room, granite in kitchen, etc. And for a 4,000- 5,000 sq foot home it would be about $350k to build. The last for at least an acre starts at about $500k where we live. But that’s just our dream lol

Post # 12
Member
1944 posts
Buzzing bee
  • Wedding: June 2009

Oh my word @roxy821; where on earth do you live that an acre of land is that high?! We live in a suburb of Columbus where land is more expensive but our 5 acres is worth $60,000. I couldn’t imagine spending that much on that size of land. Darling Husband and I are looking for land for our future home which is in the 100 acres range and it still doesn’t come close to that. 🙁

Post # 13
Member
691 posts
Busy bee
  • Wedding: October 2011

@MissGreen: My hubby and I hope to build a home someday, but where I live in NJ, an acre can run $160,000! I mean holy cow! I would love to get a 5 acre lot for $60,000! We seriously are living in the wrong place! lol

Post # 14
Member
1944 posts
Buzzing bee
  • Wedding: June 2009

That’s crazy!!!! I know now to never complain about land prices here in Ohio. 

Post # 16
Member
5670 posts
Bee Keeper
  • Wedding: August 2010

@MissGreen- I live in the suburbs outside of Boston. Everything is more expensive here! We always comment how rich we would be if we lived in another part of the country lol.

@shimmerofheaven- I think we have to move to where Mrs. Green and Miss Spunkin live.

@miss-spunkin- Good luck on the housr building and I’m glad to hear your prices aren’t as expensive. While you can’t compare the prices in the northeast to the midwest, it is generally less expensive to build a house than to buy. For example our dream house will cost us somewhere around 850k to build including last and that house would be about 1.5 million to purchase.

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