Would it be cheaper to buy the materials for a house and build the house yourself?

AccruedExpenditure

Diamond Member
May 12, 2001
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I read somewhere that it takes habitat for humanity 75k to build a 3 bedroom 2 bath house (with free labor of course)

So... hypothetically, would it be cheaper to build a house yourself or buy one on the market in California?

I mean when a condo in the suburbs costs 360k and a 5bd/3bath house sells for 760k, one would imagine that you could buy the land, materials and labor for a build a house for less than what you'd pay for one on the market.

True? False? Maybe?

 

Imdmn04

Platinum Member
Jan 28, 2002
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why is the labor free, unless u r some bum that lives on street that doesnt have a job anyways, otherwise labor is not free, think and compare about the oppurtunity costs. such as u could be making x amount of money if u didnt spend the time on building a house.
 

AccruedExpenditure

Diamond Member
May 12, 2001
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Originally posted by: Imdmn04
why is the labor free, unless u r some bum that lives on street that doesnt have a job anyways, otherwise labor is not free, think and compare about the oppurtunity costs. such as u could be making x amount of money if u didnt spend the time on building a house.

I was refering to H4H when i said labor was free.
 

Budmantom

Lifer
Aug 17, 2002
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It's not the house that's expensive it's the land, and with the interest rates going down it drives the house/land prices up.
 

AccruedExpenditure

Diamond Member
May 12, 2001
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Originally posted by: Budmantom
It's not the house that's expensive it's the land, and with the interest rates going down it drives the house/land prices up.

I realize this, i mean i've seen the value of my parent's house double since we purchased it in 1996, and the value of my condo increase 28 percent since last year.

 

AvesPKS

Diamond Member
Apr 21, 2000
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Originally posted by: Imdmn04
why is the labor free, unless u r some bum that lives on street that doesnt have a job anyways, otherwise labor is not free, think and compare about the oppurtunity costs. such as u could be making x amount of money if u didnt spend the time on building a house.

Technically, the bum that lives on the street still pays the opportunity cost (and lost "wages") of not being able to panhandle...I guess with opportunity costs, nothing is free. But I know some people where I live that either by themselves or with friends were able to build there houses themselves. One guy in particular, one of my former bosses, built his house for somewhere around $40/sq foot.
 

Budmantom

Lifer
Aug 17, 2002
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Originally posted by: Gnote
Originally posted by: Budmantom
It's not the house that's expensive it's the land, and with the interest rates going down it drives the house/land prices up.

I realize this, i mean i've seen the value of my parent's house double since we purchased it in 1996, and the value of my condo increase 28 percent since last year.


Wow 28%, time to buy another.
 

merlocka

Platinum Member
Nov 24, 1999
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My $0.02

First off, unless your Bob Villa you are not going to build the house "by yourself". Even Bob wouldn't be able to. You will need to contract out many of the jobs. Then there are inspections along the way. Organizing the contractors and inspectors will drive you to drink, because none of them care about your house one iota.

Secondly, the design of the house is not trivial. You can basically buy pre-designed homes "plans" but that's another expense.

Third, the construction outfits who build homes by the dozen are so streamlined these days that I'd be suprised that there would be any savings when all is said and done.

On that note, many of the most well build and beautiful homes are "custom" designed and contracted out. They just cost a crapload.


 

sciencetoy

Senior member
Oct 10, 2001
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If the 5bd/3ba house sells for 760k, the land alone will be a significant part of that.

In my neighborhood, people buy houses and then knock the house down and build another one. The land itself is more valuable than the land and the house together.

In building a house, there are a lot more expenses than just the materials. There are permits, regulations, architect and design fees; there's a contractor, whether you do it yourself or hire one, who coordinates the whole project; and so on. Water, sewer, electric, and god knows what else.

If you live in the middle of nowhere and you have nothing else to do, you can design and build the thing yourself. However, in the real world you have to follow a lot of rules and regulations. This, of course, translates to time and money.
 

Noirish

Diamond Member
May 2, 2000
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You can't really build your own house until you have permit and probably acknowledgement from the housing authority.
 

Electric Amish

Elite Member
Oct 11, 1999
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Originally posted by: sciencetoy
If the 5bd/3ba house sells for 760k, the land alone will be a significant part of that.

In my neighborhood, people buy houses and then knock the house down and build another one. The land itself is more valuable than the land and the house together.

In building a house, there are a lot more expenses than just the materials. There are permits, regulations, architect and design fees; there's a contractor, whether you do it yourself or hire one, who coordinates the whole project; and so on. Water, sewer, electric, and god knows what else.

If you live in the middle of nowhere and you have nothing else to do, you can design and build the thing yourself. However, in the real world you have to follow a lot of rules and regulations. This, of course, translates to time and money.

My father and Grandfather built the last two houses me and my parents lived in and the house my grandparents lived in, including the drawings.

They only things they sub-contracted were:

Foundation
Forced Air ducting
Carpet
Cabinets
Brick work

They did the rest themselves.
 

Kevin

Diamond Member
Jan 1, 2002
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Originally posted by: chiwawa626
Dosen't habitat for humanity get like half their materials donated and the other half dirt cheap?

And they are usually one level homes too...
 

AccruedExpenditure

Diamond Member
May 12, 2001
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All of what has been said withstanding, i'm absolutely sure that it doesn't take 760,000 dollars to build a house that has 5 bedrooms and 3 bathrooms anywhere in the United States.



Permits, Land, Contractors + Supplies and Labor < Market Value of the House
 

waitman

Diamond Member
Oct 27, 2002
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My father in law and I built mine, for right at 40 grand, including heat and ac, did everything except the carpet and drywall. Very little help from others. 6 people for the concrete, We paid 2 and traded labor for the other 2. 3 for the roof. He and I did the rest. About 2400 sf living area and 600 sf garage. We built his a couple years ago for about the same price and it is slightly bigger. He is a retired contractor. He sent bids for the package to 7 or 8 lumber yards, then had them bid against each other. He is very good at this, never pays retail for anything.It took 6 very long months, but very well worth it. We built my brother in law one for 22 grand about 4 years ago, 2200 sf, lots of materials given to him on that one. Lots of work, but it can be done
 

Mill

Lifer
Oct 10, 1999
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Woah... land doesn't cost that much in all places. My lot here was less than 20k... the lot next to me that I might buy is only 16k.
 

Ornery

Lifer
Oct 9, 1999
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"...unless your Bob Villa you are not going to build the house "by yourself".

I really doubt that wiener can even swing a hammer! :p


"They are empty unzoned lots all over the place... look around =)"

Is there electricity? Gas? Water? City Sewer System?

In real estate, it's all about location,location, location, and all the very best locations are already occupied.