Soon to be first time home buyer, what are some tips? Coworker says it cheaper to buy the land and then build house on it is it true?

[Mystic]

He's 62, recently moved from Florida to here in Georgia. Says that what he did with his home. Any truth to this because I was wondering weeks ago what the people who get paid to build houses get paid in profit and I looked it up and one guy asked a guy and he said he only keeps in profit 20% of what the home sells for....actually 20% of 300,000 is $60,000


EDIT: he just told me if I buy the land I see for 160K, you can find someone who can build you a house for 60K

 

[F*ckthemkids]

Building homes are for people with money, time, and resources. Unless your house is some cookie cutter, suburban starter home, they almost never finish on time. They almost never finish on budget. Unless you have the flexibility to be on site, just know the workers aren't being as productive as you'd like them to be. If you're patient, enjoy going over every detail, and have the cash...Cool, go for it. It will truly be your house. For most of us, it's not really worth it.

 

[Richard Glidewell]

Thesy swear the supply chain is still fukked up post covid that's why the materials cost so much still lying fukkers. There a lot of what ifs to your question. Location you choose.........is it in the builders normal range.......is it extra for them to go out of range........is the land clear.........do you want them to clear it........is it connected to the grid/water/sewage........there are a lot more

 

[datnigDASTARDLY]

Goodluck, these builders aren’t building for just anyone, they want that guaranteed money.

They’ll have you sitting on a dirt lot crying “why ain’t nobody helping me “ for months, while they happily build the next cookie cutter 800k (but really 250k ) McMansion down the street.

 

[beenz]

I would NOT advise building a house from scratch if you're trying to be cost sensitive. like others have said, they aren't gonna finish on time or under budget.

there's a reason that my home insurance says that the cost to rebuild my house from scratch if there was a total loss is much more than the actual current value of my house.

 

[Ezekiel 25:17]

I don't think coli is the right place to ask this. There does seem to be some truth though as far as expenses and dealing with subs. One of my company owners had his house built, but of course we're all in the construction industry. If you can find some good subs via word of mouth, you could probably get a good built home for a good price.

If anything, you can just buy a cheap existing home and renovate it.

 

[the bossman]

You buy land and then build the house on it cause you want it completely customized on some dream home shyt

You don't do it as a cheaper way to get a house

 

[BeeCityRoller]

He's 62, recently moved from Florida to here in Georgia. Says that what he did with his home. Any truth to this because I was wondering weeks ago what the people who get paid to build houses get paid in profit and I looked it up and one guy asked a guy and he said he only keeps in profit 20% of what the home sells for....actually 20% of 300,000 is $60,000


EDIT: he just told me if I buy the land I see for 160K, you can find someone who can build you a house for 60K

The land that already exists costs almost 3x as much as the house that needs labor, materials, and inspections? Have him give me the hookup on someone who can do an engine swap for $1200

 

[Sad Bunny]

But when you’re ready and can afford. Don’t try to time the market or “wait for a crash.”

As long as you’re comfortable with the monthly payment then that’s what matters. You could refinance for a lower rate in the future but don’t count on it. My mortgage has went up a little due to tax hikes at the local school district

 

[RageKage]

Could be, why dont you get one of these

The Blue Ridge-wrap around porches - True Log Cabin

This small log cabin kit has just under 1000 square feet of living space and wrap around porches. It features 2 bedrooms and 1 and a half baths.

truelogcabin.com

 

[Mystic]

I don't think coli is the right place to ask this. There does seem to be some truth though as far as expenses and dealing with subs. One of my company owners had his house built, but of course we're all in the construction industry. If you can find some good subs via word of mouth, you could probably get a good built home for a good price.

If anything, you can just buy a cheap existing home and renovate it.

You know around what he paid?

 

[Mystic]

The land that already exists costs almost 3x as much as the house that needs labor, materials, and inspections? Have him give me the hookup on someone who can do an engine swap for $1200

This the same guy who said a bbl was not surgery

 

[Ezekiel 25:17]

You know around what he paid?

No, never asked.

But if he managed to get a good price, which I'm sure he did, it's because he's a Construction Manager that knows what's going on and he has a good relationship with the subcontractors.

 

[R.E.N. Spells Ren]

I would NOT advise building a house from scratch if you're trying to be cost sensitive. like others have said, they aren't gonna finish on time or under budget.

there's a reason that my home insurance says that the cost to rebuild my house from scratch if there was a total loss is much more than the actual current value of my house.

Your home insurance company sounds like they’re ripping you off. A good portion of your home’s value is in the land. If there was a total loss, it almost certainly would cost less to rebuild it than the market value of your home (unless you live in a shytty area).


To the OP, yes it is cheaper to build a new home than to buy a new home. Buying an older home would be cheaper than new construction in general. Building your own home does require you to cross Ts and dot Is but it can absolutely be done if you’re willing to put in the work (including the research up front).

 

[Maddmike]

I just retired and I have land in GA to build on which i was gona use but location means alot. My property was in the middle of the country so I would have had to pay alot of shyt to get utilities. I ended up having a cookie cutter build. I'm probably gona stay here for 10 years and build again in Ga