To build or not to build...long post within

[vi edit]

Last summer my wife and I bought a lot in a newer subdivision in the same school district we currently reside in. The lot was around $43,000, a culdesac property, on 1.5 acres of which almost a full acre is heavily wooded. It's a really nice subdivision ($300k+ homes, high for the area) and has a lot of younger families and kids.

The lot is also literally a 5 minute walk from my parents (convenient babysitting before/after school for my daughter, weekends, ect). It's also a 3 mile drive to the grade/high school instead of a 10 mile drive. But on the flip side, it's now adds another 10 miles each way to my wife and I to get to work.

We were planning on starting to build next fall.

Last night I got a call from a guy that wants to buy the lot off us. He did a lot of work chasing us down, so he's certainly intererested.

Now I'm really questioning just how committed I am to building if I have a chance to basically walk away clean from the deal, if not make a couple bucks on it.

My current home is nice, and the lot is very nice (full acre of fully mature hardwood trees). But it's an older home with a floorplan that isn't as convenient as many modern setups. Our subdivision is also mostly families with high school kids or older. Not many kids that are in the same age group as our daughter.

But. The money aspect can't be ignored. If I build, I'm already looking at loan that's probably going to be $75k more than my existing one. I'm going to be forking over almost $20k in realtor fees that is just wasted money. I might be losing out on a decent interest rate on what I have now (4.6% for 15). And in 6 months my office will be 2 miles from me....instead of 12.

*SIGH*

My wife has the same feelings. With the money thrown away in realtor fees alone, we can probably remodel the upstairs and make it a lot more livable than it currently is. Plus with the down payments we're saving up for the build and equity in the lot we currently have, we could easily pay off all car loans making our only debts the current home loan and my wife's student loans.

But the thought of having a new place that close to the school, grandparents and in a more favorable neighborhood make the choice hard.

Dropping the lot would be an almost immediate swing of $1000 a month once you take away what the loan on the lot is and car payments.

*UGH*

-----------------
CLIFFS FOR THE ATTENTION IMPAIRED
----------------

1) Bought a lot planning to build a home
2) Some one wants to buy the lot from me
3) vi edit is having second thoughts on how bad he want's to spend the money to build now

 

[Barfo]

cliffs?

 

[Barfo]

tl;dr

 

[SunnyD]

Are you happy where you are - can you see your family there for the next 10 years? If so, sell the lot and move on (assuming you at least break even with your original investment).

 

[Chronoshock]

Sounds like you got a lot on your hands already. If you can get a fair value for it, then drop it like eez hawwttt

 

[Drakkon]

building a house is never as cheap as first estimated...that 75K will turn into 125K really quick....but it will be your home. From the ground up and that is a heckuva feeling. Sounds like it would be worth it....if there are already guys tracking you down in this market In 10 or so years its likely to go up in price even more so. If i was strapped for cash then I'd bail on it, but if you can take a hit now sounds like the overall returns would add up over time especially with family.

 

[olds]

What realtor fees?

 

[Chryso]

Tough call. I am glad I don't have to make it.

 

[mugs]

How long is your current commute?

 

[Fenixgoon]

is there any reason why you need to go through a realtor to sell either your house or the lot? also, how bad is your current 12 mile commute? any way to check out what kind of loans you'd get if you were to build a new house? good luck with things

 

[vi edit]

Originally posted by: oldsmoboat
What realtor fees?

Selling of existing home.

My current home appraised at $270k a few months back. 7% of that is just shy of $20k. That's money pissed down the drain. Obviously that part hasn't changed and was a known prior to buying the other lot, but now that I have an option on the table I'm second guessing how much I want to get out of the current place.

 

[olds]

Don't pay 7%. Offer 3.

 

[darkxshade]

Any idea what that guy is willing to offer for that lot?

 

[Vette73]

Originally posted by: vi edit

Originally posted by: oldsmoboat
What realtor fees?

Selling of existing home.

My current home appraised at $270k a few months back. 7% of that is just shy of $20k. That's money pissed down the drain. Obviously that part hasn't changed and was a known prior to buying the other lot, but now that I have an option on the table I'm second guessing how much I want to get out of the current place.

7%??? Fu_k that.

If you price it right and its in good condition sell it as FSBO (For Sale By Owner)

 

[vi edit]

Originally posted by: Fenixgoon
is there any reason why you need to go through a realtor to sell either your house or the lot? also, how bad is your current 12 mile commute? any way to check out what kind of loans you'd get if you were to build a new house? good luck with things

The lot would be a private party transaction. But selling my home wouldn't be. Only two sellers go FSBO and have it work. Desperate people, or people with "budget" homes. $270k is hardly budget for my area. And we aren't desperate.

 

[olds]

Personally, if it wasn't a money issue I'd rather live in a new home. And adding 10 miles to a 2 mile commute is nothing.

 

[vi edit]

Originally posted by: darkxshade
Any idea what that guy is willing to offer for that lot?

I'm trying to rationalize how bad I want to sell(if at all) before talking $$.

 

[RKS]

If I was planning on spending at least 5-10 years in the new house, and could build it to suit my tastes and needs, I would sell the old house.

 

[vi edit]

Originally posted by: oldsmoboat
Personally, if it wasn't a money issue I'd rather live in a new home. And adding 10 miles to a 2 mile commute is nothing.

That's for me. For my wife it turns a 12 mile into a 22 mile...each way. But for both of us it's almost entirely very smooth flowing 2 lane highways or interstate. No stop & go traffic or stoplights. So it's a pretty easy going commute.

 

[darkxshade]

Originally posted by: vi edit

Originally posted by: darkxshade
Any idea what that guy is willing to offer for that lot?

I'm trying to rationalize how bad I want to sell(if at all) before talking $$.

but a nice offer makes rationalization easy

 

[Elbryn]

another option is to just hold onto the plot of land for a few years. if land values continue to rise, you can always sell it later for more money. or build a house on it with the intentions to sell later. if the homes in that area are with 300k and your build cost is 200k, there's some money to be made as well.

 

[tomt4535]

22 miles each way really isn't that bad for a commute

 

[halik]

why are you paying 20K in realtor fees?

 

[skyking]

It is worth it for me to have a home the way we want it. That is very important for my wife and I, so we will be building and damn the expense.
We are both tired of the compromises we have made over the years.
To each his own though.

 

[Perknose]

Sounds like you don't want to build, so don't. But if you're actually closer to 50/50, then either a)Demand more for your lot from this obviously eager buyer and tell him why (or don't tell him) or b)Float your home FSBO, despite your pessimism, and see if you can make a go of that. In this day and age of the internet, it should really be more possible than ever.

But, again, it sounds to me like you don't want to build, so don't. <shrug>