If I build a house, instead of buying it, will it cost me less? I am short of money. PLEASE READ?

I had been looking for a house for a long time now, but none of them seems to be up to my taste. Either the house design is not good enough, or the place where they are is just too far away from my office. Finally, I have found a place that is near my work place but as it happens, the prices are just too high, something like 0,000 to 0,000. All the houses there are big and two storied and generally gives off the vibe where your typical upper middle-class people would live. BUT, as luck would have it, there seems to be an empty plot of land that is also for sale. The owner who owns this plot of land is also selling the house right next to it which is going up for 0,000.

My question is, if I buy that plot of land and then hire construction workers to build a house, will it cost me less then actually buying a house? If so, how much will it exactly cost me? My parent’s had died two years ago and had left me 0,000. I also have some savings plus the old cars my parents had left; all in all, I could raise ,000 more. Please help. Thank you.

7 Responses to “If I build a house, instead of buying it, will it cost me less? I am short of money. PLEASE READ?”

  1. glenn Says:

    An existing house is less expensive than the exact same house if was brand new.

    The location of a home is a huge part of the value- so the vacant lot should be pretty expensive. Then you buy it and build something that meets all the city and neighborhood restrictions and all the new building codes that the older houses don’t have to meet and even if you build a much smaller house- your new house will cost more than the older-existing house would have- but it will be brand new and just the floor plan you like.

    It will also stick out like a sore thumb. When it comes time to resell I bet you find very few buyers- they don’t want to stick out like that. So part of the cost of all this is the drastic reduction in value because of it not fitting in.

  2. Not My Real Name or Face Says:

    As a general rule, it is more expensive to build a house than buy an existing house. One factor is that you have to start paying the contractors almost right away, even though you are months away from living in the house. So you are paying for that house while having to pay rent in another place, for months on end. Also, you will have to add window treatments, landscaping grass and all the other things that are already done for you in an existing house. Those add up to a lot and that is all cash outlays. The window treatments and landscaping in my last new house cost over $20,000 by themselves.

  3. Gabby Says:

    Due to our bad economy prices are going up for almost anything. If you wanted to buy a house you would have to pay all the month bills and mortgage. But if you wanted to build a house you would have to pay the month bills as well, AND you have to hire people to build the house which is mighty expensive. Not only that your going to have to buy all the appliances and the furniture. So I do not recommend building a house at all.

  4. ioerr Says:

    You should buy a cheap house somewhere, look around and find the best bargain you can. Find a place you won’t mind living in for a long time. Spend as little as possible to get it. If you want to own it free and clear right away, fine, you can save tons of money that way over the years. But don’t spend all the money you have and take on more debt besides.

  5. Wildcat Says:

    It can cost MUCH more to build. It is not just as easy as buying the land & slapping a building up. You have building permits that cost $$$, materials, & labor charges. Also if the land has never had a house on it before there will be additional cost to bring in the water & sewer lines as well as electric service. You would be surprised at how much all the little things can add up.

  6. ronnieD Says:

    If you have $180K, and you can raise $40K more, what’s the problem? Finance the remaining $100K or so. With that big a down payment, you’ll get the best rates, considering you have decent credit. Unless you want to pay your house cash and not have to worry about it, which is a nice thought, but as high maintenance and uncompromising as you’re being with this whole house buying process, you won’t have enough cash.

  7. marc Says:

    Generally speaking, purchasing an existing house should cost less than buying a lot and building a house on it, especially if you are hiring a contractor. It is true that labor costs have come down some but the increase in the price of materials will generally off-set that. Depending on the region and the quality of the proposed house, you can probably expect the construction to run $100/sf at a bare minimum, and probably closer to $125/sf to $150/sf for an average quality dwelling. The best bet is to find an existing house where the owner must sell (a foreclosure or short sale maybe) and maybe one that needs some cosmetic work that you can do yourself.