To Build or Not To Build - Denver Area

[Reese C.]

Hi everyone,

I am currently in the Denver-metro area and as many of you know there is very low inventory and prices continue to skyrocket. I'm looking to purchase a place to move into and rent out my current one and leap frog from there. However, I have been beat out numerous times in offers and are thinking about another approach.

I have a lot in Aurora that does not have any utilities or foundation. The surrounding houses are valued at around 300k built in the 70s. I am thinking about building a house on the lot but trying to move in with equity. Are there any home builders that could build a decent quality home under 300k including tap fees and foundation? Or are there any other options I should consider? 

Thanks

[Linda Weygant]

Last time I talked to somebody about building a single house, I heard that the cost was somewhere around $175/square foot for a finish somewhere slightly above "very nice" but not quite "luxury".  That was 2-3 years ago and in Denver, prices can only have gone up.

Contractors are stretched thin, so if you do this, expect to have time delays if your contractor does not run their own crews.  (You should specifically ask them if their crew is employee or subcontractor.  If subcontractors, remember that your contractor does not really control them and there is no true guarantee he's got the people that can work on your project).

Contractors also run several projects at once, so expect delays and periods of time where nothing is happening on your project while they run around time trying to make half a dozen customers happy at once.  

In short, expect delays.  Expect it to be pricey and if your budget is less than $300k, expect to not be able to attract the best contractors.