Here's a Thought - Build Your Dream House
April 14, 2009
It is not just the price of existing homes that has declined, the price of vacant lots has not escaped the downturn. Added to the possibility that you might be able to acquire a lot in a location that is desirable, is the fact that the building trades have become very competitive in their bids for construction work.
Here are some of the challenges you might face in considering whether building your own home is an option for you. First, and probably most basic, do you already own a vacant lot or will you need to purchase one? If the latter is your situation, and for most folks it is, you will need to find a seller who is willing to carry back a note and trust deed, or you will need to pay all cash. Vacant land loans are very rare if not impossible to obtain. The selling point for a lot seller could be that it will be paid off with the first "draw" of the construction loan that you will obtain to build your dream house.
You will want to sit down with a contractor to determine what the average cost to build a home might be. The contractor might have home plans already in his inventory that he could show you and if they meet your needs, you would be a good step ahead in the process of building your home. A good idea might be to look though the various home plan magazines and see if there are plans that you could order. Or you can hire a draftsman or an architect and work out your own plans. Obviously using an architect will be the most costly way to proceed. However, it may be the case that they are also looking for work.
If you have always wanted to build your own home, this economic downturn may be a real opportunity for you to realize this dream. It is certainly worth considering .
It is not just the price of existing homes that has declined, the price of vacant lots has not escaped the downturn. Added to the possibility that you might be able to acquire a lot in a location that is desirable, is the fact that the building trades have become very competitive in their bids for construction work.
Here are some of the challenges you might face in considering whether building your own home is an option for you. First, and probably most basic, do you already own a vacant lot or will you need to purchase one? If the latter is your situation, and for most folks it is, you will need to find a seller who is willing to carry back a note and trust deed, or you will need to pay all cash. Vacant land loans are very rare if not impossible to obtain. The selling point for a lot seller could be that it will be paid off with the first "draw" of the construction loan that you will obtain to build your dream house.
You will want to sit down with a contractor to determine what the average cost to build a home might be. The contractor might have home plans already in his inventory that he could show you and if they meet your needs, you would be a good step ahead in the process of building your home. A good idea might be to look though the various home plan magazines and see if there are plans that you could order. Or you can hire a draftsman or an architect and work out your own plans. Obviously using an architect will be the most costly way to proceed. However, it may be the case that they are also looking for work.
If you have always wanted to build your own home, this economic downturn may be a real opportunity for you to realize this dream. It is certainly worth considering .
posted by shirley harry at 7:34 AM
1 Comments:
This article is very timely and relevant. As I quote Cameron Muir, an economist, "Home sales are unlikely to fall much further..That being said we expect home sales not to decline much further."
But it's never too late, with the right business plan set up, it will lead to valuable outcome. This is what most counselors would give as an advise.
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