Build vs Buy?

[MissSunshine]

Hi, I'm new to this site and maybe the information is already out there, but I'm trying to figure out if it makes more sense to build or buy a house already built? With the market changing, it's hard to know what is recommeded. We're looking at sites in the 200,000 to 300,000 dollar range and wonder what the construction costs are per square foot. Any advice would be greatly appreciated!

 

[Matt J]

There's a lot of factors that go into the square footage cost. As for building right now it's the owners market since companies aren't having to turn people away. If you want a custom home then build, if your happy with something in inventory buy. That would seem to be the biggest question I would ask first.

 

[MissSunshine]

Thanks for the reply. I guess what I'm most interested in is determing what the price/sq ft is to build. Obviously the price increases based on the quality, but it's my understanding that since the builders aren't so busy these days, the price has dropped. Is there an average cost/sq foot these days in comparison to a couple of years ago?

 

[AAbsolute]

I haven't seen any homes for sale that would cost less than us buying a lot and building exactly what we want.

 

[Matt J]

Thanks for the reply. I guess what I'm most interested in is determing what the price/sq ft is to build. Obviously the price increases based on the quality, but it's my understanding that since the builders aren't so busy these days, the price has dropped. Is there an average cost/sq foot these days in comparison to a couple of years ago?

That would be hard to say. The overall costs have dropped as labor is no longer at a premium and materials aren't stretched thin. Again though it's entirely in what your wanting. I'm sure I could find you a house being built for around $2,000/sq ft vs. a house for $200/sq ft. Your best bet if your going to build is to start with an Architect. This will give you a standard for which you want and then it can be bid out. Be leary of contractors that come in well below others. This is either a red flag for change orders down the road or flat out ignoring Architect's specs.

 

[AAbsolute]

That would be hard to say. The overall costs have dropped as labor is no longer at a premium and materials aren't stretched thin. Again though it's entirely in what your wanting. I'm sure I could find you a house being built for around $2,000/sq ft vs. a house for $200/sq ft. Your best bet if your going to build is to start with an Architect. This will give you a standard for which you want and then it can be bid out. Be leary of contractors that come in well below others. This is either a red flag for change orders down the road or flat out ignoring Architect's specs.

You might even consider going outside the immediate area and looking for exceptional contractors there. Talk to them about coming in to Sowal to build one special home for you and you may save $100,000 or more. Local contractors and Architects have long supported keeping prices abnormally high without true fundamentals.

Find a contractor who you think does excellent work outside this area and let them walk through some models with you. That will be all the proof you need about the coalition I described above. The local contractors will give you a lot of interesting and believable lip service about quality standards so get to know and trust an outsider first. Otherwise you are a fish in a barrel.

 

[AAbsolute]

There's a lot of factors that go into the square footage cost. As for building right now it's the owners market since companies aren't having to turn people away. If you want a custom home then build, if your happy with something in inventory buy. That would seem to be the biggest question I would ask first.

Do you think local builders who used to charge $275 per square foot for product that was $180 per sqaure foot other places are finally going to perform for less now? On a 2,500 square foot home that's a difference of $237,500.

Can we please have a meaningful math based discussion on the issue that doesn't go off and attack me as the poster in order to dilute the subject of cost of construction? You have been posting on Sowal for a long time and are chiming in on this issue. I'm more than curious about local builders who had been charging out of town Owners unsupported pricing for years. Many, many of these Owners will never recoup the inflated fees they were charged.

I know a lot of these companies and worked as a sub for them to. Many times we were told that their agreements were cost plus and they wanted us to bid at a certain price level. I have personally witnessed local builders ordering materials at cost plus and then having subs take the materials away so the Owner would not get mad they paid cost plus for them. I won't name names, because Kurt and Sowal wouldn't approve, but I'm not personally opposed to backing up my word.

Let's just talk some mathematical fact about the historical difference in price that the local builders charged compared to equivalent construction elsewhere.

A Word To The Wise Out of Town Owners: Consider the Source and possible motivations of people who supported construction costs that exceeded the geographic norm.

 

[woodworker]

MissSunshine -

While these guys are arguing, I'll just let you know that you can probably get pretty close to $100 - $150 s.f. I've always been a "working builder" and have always built for a lot less than the polo shirt / new truck / 5 houses at a time guys.

Keeping your house normal helps a lot. A too big house with difficult structure or crazy materials is going to just jack up the price because of the pita factor. Keep it streamlined and the job will run smooth = less $s.f. Keeps out the expensive "specialists", too.

Just look for the older, local builders that didn't get caught up in the $s.f./ subcontract game. (They'll be the ones with paint on their pants).

 

[Miss Critter]

MissSunshine, this thread may offer you some useful info:

http://www.sowal.com/bb/showthread.php?t=21212&highlight=boyd+martin

Once you speak with one or two reputable builders and get an idea of today's costs, you can compare that with houses currently on the market. Time is on your side; it's not like everything's going to get snapped up while you decide. Good luck!

 

[scooterbug44]

I am a big proponent of building instead of buying, but that is because I am rather particular about what features I want (shocking, eh?) and quality levels.

Prices have gone down quite a bit IMO, but asking what it costs to build a house per square foot is like asking what a pair of shoes costs - too many factors to give an acurrate answer. If you would be willing to post more details like square footage, construction type, finish level etc. there are many people on the board who could give you a better ballpark figure of current prices.

There are some good contractors around, and some not so good ones. Make sure your contractor is licensed in Florida, thoroughly check their references, complaints against them, and examples of their work.

Also, look at their feet - dirty/well worn workboots will build you a much better and cheaper house than flip-flops w/ no sock tan line!