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Is it cheaper to construct your own house?


emirate25

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I'm not sure if someone has asked this question before, but I am very interested in building my own house. Inner city Houston is out of the question since land is very expensive, but I am talking about land in between the suburbs and Houston.

It can be, if you know what you're doing. I'll rephrase that and answer with an absolute yes, IF you know whay you're doing. The savings can be tremendous. Beware, experience is the best teacher.

CyKat

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With the right builder, it is almost always cheaper to build than to buy. I go out of my way to give my home owners as much as possible for as little as possible.

Most builders charge retail prices though. I do things a bit differently.

I thought he wanted to know about building HIMSELF vs. hiring someone such as yourself.

CyKat

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Ah, if that is the case, then it CAN be cheaper to do it yourself. But only if you know what you are doing. If you don't, costs can skyrocket VERY easily. So easy in fact, it is more likely you'll grossly exceed your budget than had you hired a cost-plus builder (there are different kinds of cost-plus builders, make sure you get one that will put the cost in writing like I do) or a contract builder (again, make sure they put the cost in writing).

Either way, I'm not sure he is going to find much land for a spacious one story home inside the loop in a decent area for the amount he is looking to pay. Land in the still undeveloped areas of fourth ward are going for 60k for a 1/4 acre.

I'm always happy to help though.

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Its not advised to build your own home, in fact most banks won't lend you money to let you build it yourself. I know mine won't.

they will if you have some sense. i know a retiree that made several houses for various people and helped the owner obtain loans.

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I'm talking about hiring a builder to do it for me. Inner city Houston is out of the question

I believe no is your answer. I've had a family as tenants (husband works for a builder) and they were going to build their own home on an acre lot (minimum), but once they did their projections (both for time and money) they went with the builder made one.

From what I've heard, although I've never tried to budget it officially, custom homes tend to run at $100+/sq. foot and builder homes (even higher end stuff) should not go that high. I've seen foreclosures of entry level homes as low as $32/s.f. (and that included the land/lot)

Of course, it all depends on the area/neighborhood/zip code too. It's different to buy land in the Woodlands than it is in Conroe than it is in Magnolia (each with pros and cons I guess).

One thing that would be on my mind is: if you ever decide to move from your custom home, how easy will it be to sell it for what it cost you to customize it and have someone appreciate the money you put into it? Of course, if you plan to live in it for decades to come and absolutely have to have it custom, I'd say that this is probably a good time as builders have been reducing their output thus getting a good bid for the work would be more likely than it was a couple of years ago...

Hope I've helped...

Edited by TonyH
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I believe no is your answer. I've had a family as tenants (husband works for a builder) and they were going to build their own home on an acre lot (minimum), but once they did their projections (both for time and money) they went with the builder made one.

From what I've heard, although I've never tried to budget it officially, custom homes tend to run at $100+/sq. foot and builder homes (even higher end stuff) should not go that high. I've seen foreclosures of entry level homes as low as $32/s.f. (and that included the land/lot)

Of course, it all depends on the area/neighborhood/zip code too. It's different to buy land in the Woodlands than it is in Conroe than it is in Magnolia (each with pros and cons I guess).

One thing that would be on my mind is: if you ever decide to move from your custom home, how easy will it be to sell it for what it cost you to customize it and have someone appreciate the money you put into it? Of course, if you plan to live in it for decades to come and absolutely have to have it custom, I'd say that this is probably a good time as builders have been reducing their output thus getting a good bid for the work would be more likely than it was a couple of years ago...

Hope I've helped...

Something doesn't sound right in all of that.

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Which part?

I know what it costs to build versus buy. I also know what it costs me versus what the house would be sold for retail. If one were to go to KB Homes or another typical builder, you won't be getting much of a discount. Myself, I do primarily cost-plus construction. This allows me to save my homeowners significant amounts of money and they get exactly what they pay for rather than paying 30-100% mark-up.

If your tenant was building it himself, and he couldn't build it cheaper than buying, there are some particulars missing.

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  • 2 weeks later...
No what I meant was banks won't loan you money to be your own GC. They'll lend you money to have someone else build it for you though.

that's odd, i guess like u stated it's the bank you choose. a friend of mine who is also an architect just built his house on washington and he was his own g.c.

from hearing from his experience and others it's definately cheaper to build yourself, plus you can get more of what you want for a better price, not to mention you can be more of a voice to how something is getting put together meaning if it's being done correctly or what not.

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