Building a house advice

[Nevergrow'nup]

Looking for advice from others that have built a house recently. Trying to decide between stick built or modular. Just want a kind of simple ranch with 2 beds/bath.

Did your house stay on budget? If not, what ran over?

looking for others experiences

Thanks!

 

[lovetheduck]

We recently did a gut renovation/addition to our home. No, we did not stay on budget. Some things were unavoidable (septic issues), and some were our fault (tile/fixture choices). I would say that whatever your budget is add 20%. It's the little things that start to add up.

 

[#1hoosierfan]

It is the "little" things that add up. You get in the mindset that "well it just a few hundred extra here" and "a few hundred extra there." We went well over budget in ceramic tile, bathroom and kitchen faucets, and appliances.

 

[Kathi OD]

My sister and her DH built their own house. It was a modular, the short answer is no, they didn't stay anywhere near budget. They ran over on things like kitchen appliances, tile, and landscaping.

The other problem they ran into was that many lenders were not willing to provide a mortgage on a modular home. While YMMV, it's something to consider.

 

[pigletto]

We built 4 years ago. Ummm no to the on budget question.
So much is not included that you don't consider at first. Upgraded flooring, central vac, garage door opener, each and every fixture, better paint than what is offered, landscaping, driveway (we still have gravel and will pay thousands this spring to do the driveway and a concrete walkway.) Will you buy or rent your water heater? Do you have your appliances.. it goes on and on and on.
There must be a checklist for new builds out there from the buyers perspective. Just a comprehensive list that helps you consider all your costs. We didn't go too too over budget, but it was more than we expected. As a pp mentioned, factor in 20% and then you have something to work with.

One way I was able to save was with my flooring budget. I really wanted real hardwood to run through most of the top floor. So I used my flooring budget for that and found ceramic tile on sale for the laundry room and bathrooms, and used end of the roll carpet for the bedrooms. Saved me a ton.

 

[mamaLori05]

We have built 2 homes with two different builders in the last 6 years. Definately a big NO to staying on budget!! Both times we went a few thousand over, at least. Like the pp's mentioned above it's always a little here, and a little there, and there is always something you didn't think of that isn't included in the original price. You will also most likely want to do a few upgrades as you see more of the products that you have to choose from. If you have a lighting allowance, which is farily common, expect to go WAY over that allowance. We did with both houses and most of our lighting just came from Home Depot and menards on sale. I would say we bought middle of the road as far as price goes on all lighting, and there was no way we were going to meet the allowance amount. Another one we always seem to go over on is the flooring. Electrician is also another big one. With both houses we found we wanted to add outlets in certain places, switches in certain places, more cable jacks, make it so that we could turn the outside outlets on and off with a switch inside for xmas lights, under cabinet lighting, an outlet or two in teh basement (expecially if you are going to add a water softner) etc... Again, all things you don't think about until it comes down to meeting each company and looking at your blue prints/ the options they have available for you.

 

[Nevergrow'nup]

There is so much to think about !! I will factor in the 20 percent definitely!!

I am going to look for the on sale tile for the bath and laundry too. We are trying to Plan as much as we can now as we won t start until spring/early summer. We have a basic floor plan and ideas. Now to come up with the information to make sure it is within our budget!!

Thanks for all the info. Any experiences will help!

 

[Darcy03231]

DH is in the construction business. He says any time you build/do a major renovation add 20% to your estimate. While you may not spend the entire 20%, it will give you some room.

We did a major renovation last summer (roof, siding, windows and new deck) and even with DH being in the business we ran about 10% over.

I know in your original post you said you wanted a 2 bdrm ranch. If at all possible I would go to a 3 bdrm. I live in Southern NH and here its very hard to resell a 2 bdrm. home.

 

[dawson5]

Have you spoken to a builder yet? When we built, ours gave us a breakdown of what it would cost and the allowance for each category. One thing that really stuck out was $200 for mirrors (bathroom mirrors). I think the basic mirror, large enough to fit over a two sink vanity was $200 alone, we had another full bath to do and a half. I would see if you could get one of these and just go over it to see how realistic it is.

We fell in love with a floor plan but didn't like the plot it was on or the school district. That is why we built. Used the same builder as the other home. I think it was just built a year or two previous, prices should have been pretty spot-on and definitely weren't. We thought that allowance sheet would be pretty close, but it most definitely wasn't. Besides the mirrors, our largest overage was definitely lighting and I think bathroom fixtures. Possibly the knobs on the cabinets also. We also insulated our garage. Hubby spent a lot of time out there. Oh, ours was a walk-out also, that factored into the overage. Windows and sliding glass door weren't part of the original house.

 

[tinkarooni]

Are you building the house yourself or hiring a builder.? There is a big difference. We have built 3 houses, two with a builder and one completely by ourselves. With the builder built houses they gave us a price for the house. If there was something we wanted to upgrade like flooring or appliances they told us what our flooring credit would be and they would give us the credit towards the purchase price and we went out and made our own choices. The pricing was a lot more stable that way, but in most cases we didn't get what we really wanted.


The house we are in now we built ourselves about 6 years ago. Although it was a real struggle I would really recommend it to anybody who has a little expertise. Now in the case of this house we were the General Contractors ourselves and we did a lot of the work and we subbed out the things we didn't want to like drywall, plumbing. We saved a ton of money because we are handy and could do things ourselves, but we spent extra on things to get what we wanted ie: fixtures, flooring etc. So we were about 10% over on our budget overall. All in all we have a house that is worth about twice what it actually cost us to build. Six longest months of my life though.... Good Luck!

 

[aunties]

I had a modular put in almost 4 years ago. I replaced the house I grew up in with a small ranch. Best decision I could have made. It is easier to stick to a budget with a modular unless you have a lot of upgrades. The process is much quicker too. I was "homeless" for just about 2 months. I told the builder what I needed/wanted. When I signed the final contract, there were no surprises. I worked with a great house company and amazing contractors. I had central air, hardwood floors, and oil heat added. I used the standard lighting fixtures, mirror, towel racks, etc. I figured I could upgrade those easily later.

 

[jedijill]

I totally agree with the advice to build 3 bedrooms instead of 2. I bought a 2 bedroom house because I didn't think I could afford the 3 bedroom. Now it seems to be impossible to sell. I moved 3 states away and have had to rent it out the last 1 1/2 after it sat on the market for 1 full year. I think I would have had more luck if it had 3 bedrooms.

Jill in CO

 

[Nevergrow'nup]

We will be finishing off the walkout basement which could include a bedroom down there as well. I guess the biggest thing I didn't realize is time! It seems that it will take 6 months to build?B we will have a place to stay but it is a very small place.

We haven t talked to a builder yet. Just trying to get more of an idea about what we are up against.

 

[sarahlovesmickey]

We built our house like 7 years ago. I would advise you to go with stick built because I have heard HORROR stories about modular homes. YES, to going over on the budget---I don't recall how much we went over, but we were only allotted so much money by the builder for flooring---we didn't want cheap flooring so we went with hardwood flooring, nicer carpeting in the bedrooms, and tile in the kitchen and bathrooms. I believe flooring was the only thing we went over on. Over the past 7 years, we have replaced things here and there (ie: light fixtures) that we wanted.

I agree with previous posters who say that a 2 bedroom homes are hard to sell. I have a friend who is a real estate agent and she says the same thing. I wish you the best of luck--the whole building process can be so very difficult.

 

[mamaLori05]

We will be finishing off the walkout basement which could include a bedroom down there as well. I guess the biggest thing I didn't realize is time! It seems that it will take 6 months to build?B we will have a place to stay but it is a very small place.

We haven t talked to a builder yet. Just trying to get more of an idea about what we are up against.

yes, I would plan on 6 months to be safe. Our first house took about 5 months (built 6 years ago during a very busy time), and our current house (which was twice as big and built a year ago during the slow economy...which meant more workers on our house) was built in about 4 months.

I also agree with the PP's that in the long run you really will want the 3 bedroom's on the first level instead of 2. Better resale, and better for growing families. Even if you put a 3rd bedroom in the basement, it still might hurt you as far as resale goes. Most people want at least 3 bedrooms on one level.

 

[MrsPete]

We're gearing up to build our retirement house in a couple years, so I'm interested in other people's building stories. I'd like to hear whether those of you with experience how realistic our very, very preliminary plans are:

Big plans:
We have a small house plan (1.5 story, living room, 3 bedroom, 2.5 bath, eat-in kitchen, no formal dining, patio, 1800 square feet)

Our rough estimate to build is $131,000 (we live in a low-cost-of-living area, plus we already own the land)

That estimate doesn't include a driveway (which will be gravel -- we have 45 acres and don't want to build right by the road, so that's the only practical option), bringing in electrical, water, sewer, permits.

Also, there'll be landscaping -- we have heavy trees on one side of the building spot, but we'll need to add more trees on the other side.

We plan to add a three-car garage, which isn't on our plans, but that isn't nearly as expensive as the house.

No one builds basements in our area; our soil isn't condusive to it. That may be off-topic.

On the plus side, our plan centralizes ALL the plumbing in the center of the house (that is, the kitchen and baths all "back up to one another" -- well, one bath is directly above on the second floor, but you know what I mean).

Smaller details:
We don't want a large house, but we do want it to be nice -- others have indicated that it's essential to budget more for lighting, flooring, etc. I'm with you on that. We're planning good quality laminate flooring (maybe carpet in the bedrooms?), and we want good tile and nice countertops in the kitchen/bath. We want French doors in the interior, built-in bookcases, built-in storage in the walk-in closet. I want kick-proof exterior doors and keyless entry on the garage door -- things like that will add some cost. I want to get what I want THE FIRST TIME and not have to pay again later (in both cash and time) to upgrade these things.

We're short on electrical outlets in our current house, and we've already talked about adding extra outlets here and there. I know I'll add on things like that as we go.

We're planning a house that'll be good for us in our elderly years -- master bedroom downstairs, wide doors, a seat in the shower, etc. IF we need walkers or wheelchairs, it won't be so much effort to make the house functional at that point. I don't think this'll add a great deal of cost now, but it may save a good bit in the future.

We want everything to be energy efficient -- appliances, extra insulation, etc. -- because that'll save money in the future.

Does $260,000 -- double the estimate for JUST the house sound realistic? Our current (paid for) house should sell for $200,000, so this isn't a stretch for us.

 

[mamaLori05]

We're gearing up to build our retirement house in a couple years, so I'm interested in other people's building stories. I'd like to hear whether those of you with experience how realistic our very, very preliminary plans are:

Big plans:
We have a small house plan (1.5 story, living room, 3 bedroom, 2.5 bath, eat-in kitchen, no formal dining, patio, 1800 square feet)

Our rough estimate to build is $131,000 (we live in a low-cost-of-living area, plus we already own the land)

That estimate doesn't include a driveway (which will be gravel -- we have 45 acres and don't want to build right by the road, so that's the only practical option), bringing in electrical, water, sewer, permits.

Also, there'll be landscaping -- we have heavy trees on one side of the building spot, but we'll need to add more trees on the other side.

We plan to add a three-car garage, which isn't on our plans, but that isn't nearly as expensive as the house.

No one builds basements in our area; our soil isn't condusive to it. That may be off-topic.

On the plus side, our plan centralizes ALL the plumbing in the center of the house (that is, the kitchen and baths all "back up to one another" -- well, one bath is directly above on the second floor, but you know what I mean).

Smaller details:
We don't want a large house, but we do want it to be nice -- others have indicated that it's essential to budget more for lighting, flooring, etc. I'm with you on that. We're planning good quality laminate flooring (maybe carpet in the bedrooms?), and we want good tile and nice countertops in the kitchen/bath. We want French doors in the interior, built-in bookcases, built-in storage in the walk-in closet. I want kick-proof exterior doors and keyless entry on the garage door -- things like that will add some cost. I want to get what I want THE FIRST TIME and not have to pay again later (in both cash and time) to upgrade these things.

We're short on electrical outlets in our current house, and we've already talked about adding extra outlets here and there. I know I'll add on things like that as we go.

We're planning a house that'll be good for us in our elderly years -- master bedroom downstairs, wide doors, a seat in the shower, etc. IF we need walkers or wheelchairs, it won't be so much effort to make the house functional at that point. I don't think this'll add a great deal of cost now, but it may save a good bit in the future.

We want everything to be energy efficient -- appliances, extra insulation, etc. -- because that'll save money in the future.

Does $260,000 -- double the estimate for JUST the house sound realistic? Our current (paid for) house should sell for $200,000, so this isn't a stretch for us.

It's hard to say without knowing what different things cost in your area, but to me it sounds reasonable. We really like the building process, and we really like that our house is the way WE want it when we are done. I do agree with you that it does cost less to do any major changes up front, instead of trying to do them later, so if you can stick with that plan.

Have fun! Building a house can be stressful, but you don't have to let it be. We enjoyed picking out everything and seeing what was out there for options. It was also exciting to see everything we picked out coming together!!

Edited to add: One thing we found helpful was to ask around and get referrals as to which builders were better. Find out what contractors the builder's use and go in and ask those contractors what they think of that builder. You would be surprised at how honest those contractors will be. Some of the contractors will flat out tell you which builders they have trouble with. If the builder doesn't want to give you a list of the contractors they use ahead of time, take that as a warning sign and run run run! We were deciding between two builders who happened to use some of the same contractors. When the contractors we contacted gave us the same answer as to which builder was better, we knew we had our answer. We had a very positive experience both times with the 2 different builders we chose.

 

[rubato]

We built our own log home in 1997. We still weren't done when we sold it in '04. We went over budget, even building it ourselves. Things add up. Also, costs keep rising. If you get a bid on concrete work today and don't do it for 3 months, it will have increased. If you are hiring a builder, make sure he is reputable. Make sure he is including all costs, including permits and labor and everything. It will still be more, but at least you know what you are working with.

Unlike others, I think that if you want a 2 bedroom, build a 2 bedroom. In 7 years, when our son goes to college, we're building a house again. It will be 2 bedrooms, 2 baths, with the master being about 700 square feet. I want a concrete house built the way I want it, not what will resell best. We did that with the log home and, when selling it, made a very nice profit.

Good luck. It's a fun and stressful thing to do, but, you get what you want.

 

[tholczer]

Prepare for the War and Peace of posts!

My husband is a General Contractor and I have to say that a custom home will always have better resale. A few things to watch for when hiring a General. ALWAYS get at least three and no more than five bids. NEVER go with the lowest bidder. Especially if they are far and away lower. Lots of contractors get in the door with low allowances and/or non-specific bids and then hit you up with crazy change orders once they're on the job. My husband lost a job last year to another contractor because the other guy was willing to bring his profit margin down. Of course he was. That job went $400,000 over in change orders. That is where he made his profit. Be very wary of contractors that easily drop their profit margin. That means they are still making it in the numbers you can't see. It's actually good to have a contractor not willing to budge on their profit margin because usually that means it is legitimately all they are making on your job and/or, they are working/in demand and don't need your job. A working contractor is generally a good contractor. Especially in this economy. We have had so many friends go out of business.

You also have to know what you want in your house so you get the right contractor for your job. Do you want granite, tile or laminate for your kitchen counters? Ask your contractor which type they normally put in homes. This will tell you what quality of homes they are used to building. If you want a custom home with all the bells and whistles, you don't want to hire a contractor who mostly puts in laminate. Even if his price is lower. And vice/versa. You will ALWAYS get what you pay for. We lost out to another contractor last year who was bringing in his "family" to build and keep costs down for the homeowner. The house was on a hill and needed very deep and specifically placed footings. The first $50,000 went toward these footings and the contractor poured the concrete in the wrong place. Most contractors can't afford to fix a mistake that big so the homeowner is left with the bill. Make sure your contractor has valid liability insurance and pays workers compensation as well as a valid state contractors license.

Make sure your contractor's estimate is extremely detailed. Detailed as in, brand names. You're going to put in vinyl windows? Great! Are they Marvin or Anderson? Because Andersons are crap. And if you find this out afterwards and decide on Marvins, you will have a change order. And if windows are an allowance, this should send up a red flag. Now, does this mean you need to look at every single call out for windows and doors and hinges and locks on your plans? No. If you hire a good ethical contractor worth his salt, he will not be using products he doesn't believe in because they are cheaper (or lowering his bid with allowances). But by knowing a little about the windows or say, the doors you want, you can find out the quality of his baseline products and this will also tell you about the quality of his work. You should never have very many allowances on a bid. Cabinets and tile are really the only variables. Everything else should be a hard number.

Don't just ask for referrals. Ask him how many difficult clients he's had in the last year or so, and how he worked through those difficulties. If he's willing, and he should be, ask to talk to one of them so you get a sense of what the guy is made of, his ethics, etc. We worked for clients last year and I swear, everything that could possibly go wrong on one job (heck, on six jobs!), went wrong. AND, the client had OCD and followed everyone around with a tape measure and a level. My husband never ducked a call. Mistakes will happen and you want a contractor who takes responsibility. When you get a referral, go to the house and see the work for yourself. Ask the home owner how many change orders they had on the job and how many of those they felt were because of something the builder left out of the bid/and or were low quality allowances, or were legitimate changes the home owner asked for.

These are just a few considerations off the top of my head. My husband has done a few blog posts this last year that might help. http://ksmremodels.com/ I know you aren't in our area, but they should still apply.

Good luck!

Tracy