Where to start?

[Mr robo]

Greetings forum members. I would like to buy a lot and build a retirement home somewhere in the panhandle. I wonder if some of you would be kind enough to advise a good approach. I know my total budget (move in cost). Lot prices seem easy to estimate, but construction costs vary so much, I don't know how to go about estimating the cost to build and therefore develop a budget for a lot.

Is is it better to start with a realtor as a buyers agent, or better to start with a builder? What is the best approach to get started?

any advice would be appreciated.

 

[Garner]

Hi Mr. Robo,
I am a Realtor, so you'll have to understand an obvious bias. Construction costs will vary greatly depending upon a number of factors. Some of these include: type of construction - solid block, frame, system built; location - neighborhood codes requiring specific construction quality or architects / builders; finishes - luxurious kitchens and baths or more simple, "builder grade" finishes.
Many people start with an "all-in" budget and work backwards.
If I can help you in any way, please feel free to contact me,
Thank you,

 

[Beth262]

Our real estate agent made phone calls to various lot owners in our desired area and we got very lucky about a year ago- the lot owner had the lot since 1980 and decided to sell! It was a dream come true for us because we got the perfect lot for us. Our home will be finished next month. Our builder is Andy Beno and our architect's name is Tyler Doin. They are wonderful. Good luck to you!

 

[Aleena27]

Interest Rate Breakdown

Interest rates fluctuate multiple times a day and the interest rates available at the time you actually purchase your home will affect how much house you can afford. The higher the purchase price, the bigger the difference the interest rate will make. The lower the interest rate, the more expensive the house you can afford, and the higher the interest rate, the less expensive the house you can afford. Here's a chart showing how this works:

Purchase Price	Interest Rate	Loan Term	Monthly Payment
$250000	7%	30 Years	$1663.26
$277500	6%	30 Years	$1663.75
$250000	6%	30 Years	$1498.88
$225000	7%	30 Years	$1496.93

 

[Zebraspots]

Don't buy any lot that is not in flood zone X and that does not have the amenities they are charging extra for in place.

You need to figure out where you will be building and what type of house you will be building. Asking how much a house costs is like asking how much a car costs. You have to narrow it down quite a bit to get close on the numbers and even then it will still be an estimate.

Also remember that some places have HOAs that add to your costs, design guidelines that will dictate some materials and house types, that many contractors work on a cost plus basis, and it always costs more.