Not a garage but I need help

[sharpshooter]

Im really at a crossroads here and am not to sure on what I need to do, or check into to make all things go smoothly so Im here to seek you guys' expertise.
With the house market what it is. Is it smarter to build or buy?
Im in Tennessee and Im sure its the same across the U.S as far as the economy goes with buying and selling houses. All I have heard is that its a buyers market. Well Im looking into making my first home purchase wether it be building or just buying. Im not for sure as to which is the better route. Chances are your gonna get a little bit more house for the price if you buy a house thats already built BUT you will still have to fix things and what not. If you build, it will be the way you want it, it will be new, but it will cost you a little more. Im looking to spend around 120k. The market at this price isnt favorable. I have found some houses, but like I said they are gonna need some work. If I could build a house for that say around 1500 sq ft (its just me and my wife) then what would be wrong with that. I just need some guidance. Any help would be great. Obviously I wanna get the best bang for the buck, If I buy used lets say a 25 yr old house, 10 years down the road I have a 35 year old house how hard will it be to sell? IF I built it would only then be just 10 yrs old and I would think that would be very attractive to the buyer. Im just trying to cover all my bases here because truthfully I have not a clue on what I need to do.

 

[Yotaforce]

I bought a new house and boy do I regret it. The way I see it is that building standards 30 years ago were alot better than they are now. I don't think my house has more than two joists at exactly 16"oc. I took a stud finder once to hang shelves and realized that apparently the builder used monkees with nail guns to frame the house. I have had enough problems with my brand new house that I really wish that I had purchased an old home that I could have slowly remodeled and fixed up at a lower price, and made it a home I could be proud of instead of wishing mine would burn down so I could get out of the mortgage. I love the layout of my new home, but heck, I chose it. I think that if you could go into a historical district and charge a few million on a 100 year old house, what really is the difference buying one that is 30 years old and broke in good with established lawn, landscape, maybe a garage....... Last time I rode by a new construction site, I saw ONE white guy on site, compared to the 30 illegals crawling all over that house. I think he must have been the foreman. I'm not saying border jumpers can't build houses, because some CAN! But how many are really qualified?

 

[Red Green]

Don't get in a hurry. In the area I am in southern Michigan you would be way farther ahead to buy a house. I would start with making a list of all things you want or have to have in a house. Then sort the list my what is most important to you and your wife.

If you are not set on a traditonal style house you could check out Dome style homeshttp://www.aidomes.com/
thats a Dream of mine to build one of these but I doubt it will ever happen

 

[rsanter]

I think there are several factors you need to look at:

start with making a list of the features you want in the order they are inportant to you.
size
location
amenities
etc

you then need to look at money, can you afford to buy or build what you want for what you want to spend.

if you can find a house that meets your needs and it is not more expensive than building your own, then you are done. buy it.

if you are going to start compromising then you need to start the ballancing act on what you want and what you can afford and what you can live without....etc

as a rule of thumb. if you will only be there a few years then you will want to buy. if want one that you will live in for many many years then you can start to lean in the direction of building unless you can find something that you love.

bob

 

[PAToyota]

Hmmm... My house is over 80 years old and I'd have to agree with Yotaforce - you aren't going to find that sort of quality these days unless you really pay through the nose. Hardwood floors, hardwood trim, etc. Plus, I find that the layout is much better suited to my life than what they build these days. So much of "design" these days is for show - dining rooms that are never used, everyone eats in the kitchen; master bedrooms the size of living rooms, etc. Then I've gone through and updated the electric, added air conditioning, added central vac, plan on redoing the kitchen and bathroom to meet my needs, and I still feel I'm coming out ahead compared to building from scratch.

Chances are that with the glut of houses on the market you can find a much better deal buying than building if you are willing to take some time to find something that suits you.

 

[rickairmedic]

I would say buy in my area the money you are looking at spending will get you a 40 yrear old house such as mine hardwood floors . Plywood under the hardwood floors REAL brick exterior 2 and 1/2 car attatched garage full basement about an achre of land ooooooor for the same money you could get a **** house particle board everywhere Vynil siding no basement garage not attatched if there is one at all neighbors close enough you can reach out and knock on the window to ask for a cup of sugar and falling apart before you move in .I would have to say buy a older house and then make it what you want the old saying they dont build anything like they used to holds true in houses as well I have customers with million dollar homes that are built out of **** compared to mine .


Rick

 

[Franz©]

We have a builder here who built nothing but brick houses over plywood houses for 30 years. About 5 years ago he started a new tract 3 miles west of his last brick house. Brick accents are now a cost adder, no more brick houses because nobody can afford one, and the craftsmen aren't available to build them anyhow.

From time to time I connect up with a bunch of guys at the local choke & puke for coffee. They all worked in the construction trades most of their lives, and the conversation is always about the "quality" of the **** being knocked together today. It's not just houses, it's construction overall. Gotta build it faster, cheaper and get on to the next job, screw doing it right. I've heard builders admit they build 5 year houses, just long enough for them to get clear of the warranty and down the road with the profits.

The current standard of acceptable is Piss Poor, and mediocher is currently considered quality.
The materials being used today ****. Pick up a new 8 foot 2 x 4 from Home Desperate or LowLife, and weigh it beside a 2 x 4 of 1960 vintage. Guess which weighs more and therefore has higher fiber density.

Ask yourself why so many new codes are being written and so many more inspections are being done. Even craftsmen with years of experience can't build with **** unless you're doing cob construction.

My house is 60 years old, and LN got on the remodel kick a few years back. I pulled a piece of hardwood flooring from the atic where it sits for just in case replacement, and told her when she can find that quality of material for her project to let me know. I even took her to the Box Stores. She changed her mind about remodeling.

 

[kbs2244]

The basics don’t change no matter the current economy.
In Real Estate the basic is so basic it has become a joke.
“The 3 most important words in Real Estate are Location, Location, Location.”

So, first make sure you are happy with the location. You cannot change it later.

Second, if you are a good do it yourself person, you best dollar bet is to buy an existing “fix it upper.” You should get a place with an existing occupation permit, so you can live there while fixing it up. (Big warning. This can put a big strain on even the strongest relationship. Taking a bath in a junkyard tub in the basement that is filled by a hose from the water heater can get old real fast. I have done this twice. I learned the first time to upgrade the bath first when I did the second house,)

Third, be real on your money. Get a traditional 30 year mortgage. The current problems are because of signing mortgages with too many variables. If you have the traditional mortgage you have a known dollar constant for 30 years. Even if you don’t stay there that long, you know what you need every month for as long as you do.

Fourth, do the mechanicals first. The stuff inside the walls and in the basement are not glamour but they are the foundation that the fancy stuff is built on.

 

[Charles (in GA)]

Brick accents are now a cost adder, no more brick houses because nobody can afford one, and the craftsmen aren't available to build them anyhow.

Whats the matter? you don't have any "south of the border" labor up there?

Charles

 

[Franz©]

For some reason we only get them when contractors haul them in for projects.

NY has some interesting laws that allow out of state contractors to do a complete job at substantially lower cost by employint all non NY residents, and companys like Lowes love taking advantage. Given our insurance rates and taxes, a contractor and a building owner can have a big saving. Of course NY still collects income tax from the workers, and motel tax, but it's still cheaper, especially in Workman Comp insurance. Strangely, this has led to some interesting living arangements on jobsites. 20 guys standing around a tent at 4 in the morning seem to get attention from the local law. INS gets very pissed when they have to send their bus to Rochester for a pickup, and 20 workers head south that day.

The local economy for trades has sucked for 4 or 5 years, and the Unions tend to be a bit pissy about illegals, or "Undocumented citizens" as the PC media outlet calls them.

 

[jimvannoy]

My house is around 110 years old. Built with heart pine and hand hewn beams. I wore out 6 or 7 drill bits trying to drill through studs when I rewired and installed new plumbing. Houses today are built with lumber and labor which is not nearly the quality it once was. I bought some 2x4's a while back for a project and they felt like balsa wood. Do you ever notice how whole neighborhoods are wiped to bare slabs when a tornado goes through? A large tornado passed within 100' of my house 15 or 20 years ago and took out several huge 100+ year old trees but did little damage to the house. Some metal roofing missing and a couple broken windows from flying debris.

 

[Lloydthumper]

I have a 50 year old house that I have a total including land of about $50,000 and no it is not a POS I just played my cards right. I took my time and looked for land and bought it and then I actually bought a house that had to be moved due to a McDonalds that wanted the property It is a 3 bed room 2 bath house which had just been remodeled then which then it was a 38 yr old house. I have bought property on each side of me now using the instant equity in my home and when apraised the last time about 6 yrs ago it was apraised at over $160,000 (before my 30x40x12 garage) But my home is in no means is a mansion at 1575sqft but I guarutee you that I can sell my house alot easier than the people buying what suppose to be brand new $300,000 homes less than a mile away from me and a mile and ahalf they are around a Million each. That I personally would not have watching them being constructed My garage I bet is build better than them and I did it the cheapest way I could (that met my standards). New houses are built way to cheap in my opinion but they do it so everybody can make money on them. I'm just saying I would not trade my house for a brand new one built with the same lay out If it was offered to me. A house is all on how it is taken care of.

 

[Deacon]

I have been building custom homes for almost 30 years. I ALWAYS tell a potential client to purchase an existing home if they can find one they like and fits their needs. We can never duplicate existing homes for the same cost. Most of the cost increases we see are directly related to governmental requirements or fees whether it be for system development fees or the cost of lumber going up because of trade embargo or excess exportation of materials. Insurance lobbies have successfully got code changes to increase the engineering requirements for wind shear and earthquake. Better each of you pay more for your house than a catastrophic event bankrupting all insurance companies. It remains to be seen if these code changes will mitigate a serious event.

In any case, land cost, governmental fees, etc take a much larger portion of the cost of a home. Everyone has a limit on their budget and that is the most they can spend. A builder is trying to provide the best product he can for that total price in most cases. I know it is easy to toss off bad quality on bad contractors but like in any industry you get what you pay for. If you expect more hardwoods, more tile, more granite, more land etc you need to survey your market and see what price that is going to be as most contractors will be in the same general profit margins. In my market the average GROSS profit is around 11% with net being in the 1.0-1.5% range.

Generally if I was in the market for a home I would first define the location I wanted to live and afford. I would then look for homes built in the past 5-10 years as they would incorporate newer code requirements and more efficient operation. Trust your eyes and look at the small details, it will tell you alot about the overall construction. If the small details are not taken care of and they are visible imagine how much can be wrong behind the walls regardless of the building inspector's sign off. They do not pass quality only code.

If you find a property and I believe the BEST opportunity is going to be in the next 6-9 months due to potential foreclosures and the soft market (read buy as soon as you can) and low interest rates hire a competent home inspector and get the property inspected. You can make the decision at that point about necessary maintenance etc and whether the home will be a good fit. I do not call it an investment because that is why we are in the mess we are today. People have been treating real estate as an increasing value investment. If you look at most averages over time it does increase but typically not a lot more than the cost of living. Huge spikes will always result in larger market depressions. Those in a position to buy while in one of these depressions will stand to benefit the most.

If you can't find what you want, realize that you will have to pay for what you get then look to build your own home using a well referenced, experienced and financially solid contractor. Don't ever believe you will get more than what you are willing to pay, we are in business to make a living and if possible a profit. Be a cautious consumer and you will get what you expect and want.

Deacon

(adjust my comments for your local market area )

 

[Jey]

You shouldn't build.

it's ALWAYS more expensive than you thought it will be. The price is ALWAYS more. If you want to build a 120k house, shoot for a 100k house and you will get a 120k house.

I would say you're looking the wrong way. Find bank repo's, and HUD houses. Contractors in most area are looking for work, rather than paying them to build a house, pay them for a remodel of things you don't like. This will be much easier, and cheaper, and you can span it over time.

Also, with the current conditions the guys that **** at being contractors are GONE. It helped weed out the ****** contractors up here in michigan, well. for the most part.

I bought a bank repo about 7 months ago. I bought it for 150k less than the owner before me bought it 2 years ago. Even with the market falling, i'm still head.