Moving to expensive area - build or buy?

[johnsmb]

We are moving to SW Washington and the housing prices are insane! I desperately want at LEAST an acre, but the prices are 300,000+ for anything decent on just one acre. What to do?????

I am starting to wonder about building. Are there any good websites that explains how you get a house built for absolute newbies? It seems we could buy 2-5 acres for about 100,000. Can an 1800-2000 square foot house be built for $175,000? I have no clue how to find out about power, septic, well. I am off to search the web, but thought maybe someone might know of a good website to begin learning.

The other option seems to be a manufactured home, but I am leary of this because they do not seem to hold their value very well in WA.

[CJ]

Ouch... is not moving a possibility? We were faced with a similar decision a while back, and decided to turn down a job offer because the area's cost of living was dramatically higher than "home".

[Rocky Fields]

Hey.

You need to talk to builders in that area to see how much it will cost to build. I'm sure they will be helpful, since they are always looking for another customer.

Prefab houses are decent. The walls are premade in a factory and assembled on site.
I know someone who lives in one in southern Wisconsin. The quality of theirs is outstanding and the average person could never tell it wasn't stickbuilt on site.

You can be your own general contractor for a stickbuilt, but it takes someone with construction savy. This cuts out the builder's profit (middleman).

Personally, without knowing for sure, I doubt you could have a contractor come in and build the sf you want for the price mentioned in the area you specified.

RF

[Beeman]

Much more to consider besides the price of land and the structure. The simple necessities bang the price much higher. Things like the water hookup or well, sewer hook up or septic, electrical/phone/cable, driveway, walkways,patios,decks, drainage/grading, and landscaping. Landscaping might sound like it's unnecessary but go to a new house building site and look at the mess and mud and imagine just having that around your house. I have friends that couldn't afford the landscaping and driveway and it's a mess when it rains forget about the erosion.

[Selena]

Your $300K on 1 acre would not be unheard of in my area. IF you can build for $110 a square foot, that would be a decent deal. Well is a big time roll of the dice, you can typically get an average depth but no guarantee. Budgeting for 500 ft and having to 1000 ft will set you back. Conventional septic (my area, couple of years ago) at least $5500. We opted to buy existing on 5 acres as by the time we bought 5 acres, put in well, septic, and foundation, we'd be at $200K. And my husband is in the building business so we get things at pretty good price (land excluded). I'd be looking for a habitable, fixer-upper and/or could enlarge. But I have a spouse that is pretty savvy when it comes to what can/can be changed in a structure (and the cost that goes along with it).

[RichieC]

Building new is pretty much always at least as expensive as purchasing an existing home. If you can handle large parts of it yourself, you can spend no more but end up with a place more to your liking. But it is, generally, not a way to save money.

[Filas are Prima]

Originally Posted by Beeman

Much more to consider besides the price of land and the structure. The simple necessities bang the price much higher. Things like the water hookup or well, sewer hook up or septic, electrical/phone/cable, driveway, walkways,patios,decks, drainage/grading, and landscaping. Landscaping might sound like it's unnecessary but go to a new house building site and look at the mess and mud and imagine just having that around your house. I have friends that couldn't afford the landscaping and driveway and it's a mess when it rains forget about the erosion.

YES!
And then there is the horror of the brutal planning commission, with their developement fees: ie- square footage tax for the school district, archaeological surveys (only do that once per year-you wait) exhorbanant well drilling permit fees-on and on!
Washington is an ultra liberal, high tax state, I'd expect the worst from them.
Watch listings for a partially developed, rural homesite. I often see acerage with shop, well, septic, and electric-but no house yet. Those can be well worth their asking price with the main improvements already in.
Investigate re sale mobile/modular homes, often some real nice stuff for way less $.
CHECK THE ZONEING!!!!!!!
Avoid city limits like the plague. Go county.

[Marilyn]

Listen to Beeman very, very carefully. You can count on building from scratch costing you at least 50% more than anticipated just because of all of the other necessities.

[Ken Scharabok]

One option might be to buy the cheapest fixer-uper or conventional house in an older neighborhood going upscale and buying a one-acre lot out in the boonies. Then put money into expanding/remodeling. From what I've read if you remodel for resale you won't get your money back on things like kitchen and bathrooms. Adding square footage, such as adding bedroom(s)/bath(s)/garage or finishing a basement will return your investment. However, if you do these initially, you get to live in them. Sometime in the future, when the property has (hopefully) appreciated, you might build on your one-acre lot.

You might also differentiate between manufactured homes. Trailers (even double or triple-wides) are generally called mobile homes and have questionable appreciation value. Manufactured homes are also built in factories, but generally of higher quality. Difference is large a manufactured home is brought to the side in sections on a trailer and lifted onto the foundation. Mobile homes generally are just blocked up and the wheels removed. Apparently the former's appreciation potential varies from area to area.

[watcher]

Originally Posted by johnsmb

We are moving to SW Washington and the housing prices are insane! I desperately want at LEAST an acre, but the prices are 300,000+ for anything decent on just one acre. What to do?????

I am starting to wonder about building. Are there any good websites that explains how you get a house built for absolute newbies? It seems we could buy 2-5 acres for about 100,000. Can an 1800-2000 square foot house be built for $175,000? I have no clue how to find out about power, septic, well. I am off to search the web, but thought maybe someone might know of a good website to begin learning.

The other option seems to be a manufactured home, but I am leary of this because they do not seem to hold their value very well in WA.

Check the local building Nazis and see if they will kindly allow you to build a dome home on the land you are renting from the local government. If so I'd suggest you look into doing that.

NOTE . . I HAVE NO EXPERIENCE WITH THE FOLLOWING COMPANY OTHER THAN VISTING THEIR WEBSITE AND A FEW E-MAIL QUESTIONS.

With that out of the way we, DW and I, are planning on buying a 'prefab' concrete dome from: aidomes.com and building it ourselves. The big draw for us since we have moved into a hurricane area is the fact that the domes are nearly indestructible. Their energy efficiency and ease of construction are great bonuses.

[Selena]

Originally Posted by Ken Scharabok

One option might be to buy the cheapest fixer-uper or conventional house in an older neighborhood going upscale and buying a one-acre lot out in the boonies. Then put money into expanding/remodeling. From what I've read if you remodel for resale you won't get your money back on things like kitchen and bathrooms. Adding square footage, such as adding bedroom(s)/bath(s)/garage or finishing a basement will return your investment. However, if you do these initially, you get to live in them. Sometime in the future, when the property has (hopefully) appreciated, you might build on your one-acre lot.

You might also differentiate between manufactured homes. Trailers (even double or triple-wides) are generally called mobile homes and have questionable appreciation value. Manufactured homes are also built in factories, but generally of higher quality. Difference is large a manufactured home is brought to the side in sections on a trailer and lifted onto the foundation. Mobile homes generally are just blocked up and the wheels removed. Apparently the former's appreciation potential varies from area to area.

Bathrooms and kitchens can get close to 100% if you don't go hogwild or decorate it 'funky' or not within the architectural style of the house. If you replace a clearance sale turquoise blue fixtured kitchen and bath with neutral fixtures, you will recoup your money. And keep in mind things that are easily changed later. A generic, functional faucet is budget kind but can be upgraded later with little overall impact. Quality construction framing has to be done early as it is not an easy thing to "change" later.

[RichieC]

Originally Posted by Selena

Bathrooms and kitchens can get close to 100% if you don't go hogwild or decorate it 'funky' or not within the architectural style of the house. If you replace a clearance sale turquoise blue fixtured kitchen and bath with neutral fixtures, you will recoup your money. And keep in mind things that are easily changed later. A generic, functional faucet is budget kind but can be upgraded later with little overall impact. Quality construction framing has to be done early as it is not an easy thing to "change" later.

This has been my experience, as well.

To maximize resale value, NEVER eliminate bedrooms. ALWAYS make sure a decent kitchen (not a dream kitchen) is in place. ALWAYS make sure bathroom fixtures are up-to-date. ALWAYS landscape (and if you can't make it look professional yourself, have a professional do it.)

NEVER put in a pool or backyard pond expecting it to pay for itself in increased property value. It won't. Same with hot tubs and saunas. Get 'em if you want 'em, for yourself, but don't kid yourself that they are an investment.

[mayfair]

Good thing you're in SW Washington- if you go north the same acre and house will cost you 500K +!

[Maura]

A mobile home (double wide) will depreciate in value faster than a "real" house. A modular home (prefab) can be decently built. However, a good modular will not cost less than a stick built, it will just go up faster. If you go with a modular, get the type that is finished on the job, not just put together in one day.

You could buy the land and put up a small cabin just to have a place to live. You have to put in well and septic no matter what you build. Just be sure the septic is built for your future house, not a small cabin. You can get a dome or a yurt. Once you build your dream house, the small unit can be used as a shed or visitor's cottage, or store, or even rented out.

If you are your own contractor, you can save 20% on building. If you hire a contractor, but do your homework on building materials you can still save money. One builder we wanted to contract with quoted his price using the most expensive shingles. I had asked for a lesser shingle that was made to stand up to high winds. Yes, I noticed and I wondered what else he would decide to change in our specs that would cost us more money. We ended up contracting the framing and windows and siding, as well as the septic and driveway and well. We put in our own heating system (in floor), electrical, and plumbing. Friends helped to drywall.

You can build spending less money, but you don't want to build cheap.

[Wayne02]

A year ago or so a relative had a small 3 bedroom 1.5 bath spec rambler built on his property in Lewis county, the property already had the road and all utilities in. This was a very plain Jane "spec house" with economy appliances, and he had to do all the finish work himself - interior and exterior painting, landscaping etc. I think the house may be 1100sq ft. It cost $120,000 if remember correctly.

[Quinton]

Well, if you are in WA state..

I suggest looking into doing it yourself. (Maybe with a little help)

http://www.loghomebuilders.org/

These guys promote doing it yourself for cheaper than paying others.

[Ken Scharabok]

Two articles on ROI on remodeling:

http://homerepair.about.com/od/worki...vation_roi.htm

http://real-estate-agents.com/tips/r...estments.shtml

Note differentiation between doing so for resale value only vs for your own enjoyment.

[suburbanite]

In my area you'd be looking at *at least* $800,000 for an acre with a (decrepit) house.

[Shrek]

Washington, Oregon and the rest of the northwest all have horrendous zoning regulations. I would suggest renting until your settled into the area and can feel the waters out.

During your rental time you can evaluate local zoning regulations and decide if your better option is to build or buy one of the many subprime foreclosures in the region.

[Wildwood Flower]

Originally Posted by Shrek

Washington, Oregon and the rest of the northwest all have horrendous zoning regulations. I would suggest renting until your settled into the area and can feel the waters out.

During your rental time you can evaluate local zoning regulations and decide if your better option is to build or buy one of the many subprime foreclosures in the region.

I agree. You'll pay so much for permits it would blow your mind.

I'm from Oregon and we moved to Oklahoma a few years back.

SW Washington has lousy weather too. It's very depressing for much of the year. You'd be better off to rent for a year, and check it out.