All Forum Posts by: Chris Vee

Thanks @Josi Colley and @Eric Teran for chiming in - I appreciate the insight! Eric, I google'd your blog - thanks for mentioning it is out there and taking the time to document your experience.

I'll share some research I've learned in the past day or 2. It's a different market, but I talked to a friend in Raleigh, NC who built in 2017. They visited a new home they liked, asked the realtor for the architect's contact info, and got in touch with the architect and builder. The GC/Builder agreed to cost + 10% with no change fees beyond parts and labor. I'm told cost + 15% is more common, and anything in the cost + 20% range ought to be polished and perfect and typically unnecessary. The house was done on time and only 2% above budget, perhaps partly because my friend made only 5 change requests and because the builder had just built the same model house and could make better estimates. Cost was $128/sq ft for 3300 sq ft house + standalone garage with unfinished room above. I've been to the house many times over the past 3 years, it's not made of cheap finishes. And my friend used to work in construction, so he knew what not to cheap out on.

Eric, you mention seeing builders bid about 525K on 3000 sqft - that's $175 / sqft. I certainly understand that the DC area is more expensive than Raleigh (though that gap is closing). Shouldn't materials be about the same cost regardless of market, and so do you think the difference in cost is just labor being that much more expensive?

@Doug W. yes I was wanting to stay at that price including the purchase of a lot. If I can find a lot I like that already has utilities on site (typically going to be an existing home on it), then I'm expecting based on what I'm seeing in the area that a lot can be had for $550K. Yes, it would cost to remove the house on the lot. I would plan to get an appraisal estimate on a deconstruction to see if the tax deduction makes financial sense - either way, donate or demolish, I know that's a cost I'll have to account for in addition to paying a builder to build a home on the land.

Russell, thanks for the quick response. What about buying a lot and paying a builder to build one of their models on top of it? Still of the opinion that there's no opportunity to save over just buying something new that's already been built? I guess a different way of asking my question is can I expect to find or pay someone to build a 3000-4000 sq ft home for 1.0M-1.1M? Not interested in building it myself, as certainly I do not have the experience or ordering power that a builder does, as you point out.

Hi everyone. First time SFH prospective buyer in NoVA - not as an investor, but to live in.

Question 1: Is it reasonable to expect that for $1.0-1.1M, I can build a 3000-4000 sq ft home in the area? I've read that a builder's gross margin for new homes is around 19-20%, and many are 5000+ sq ft and 1.4M+, which is too much size and cost for us, so wondering if buying a lot, deconstructing/donating, and then building new on it is feasible for $1.0-1.1M.

Question 2: Our purchasing timeline is some time around Fall / end of year 2020. I understand some think that this is about the time we'll start seeing any foreclosures (from the economic impacts of the pandemic) kick in - how should this factor in to my thinking?

Background: Driving around neighborhoods (Vienna, Pimmit Hills, Dunn Loring area so far) and looking at online listings, it seems like new construction is always 5000+ sq ft. and $1.3-1.6M. It seems like lots (with or without existing home) go for $450-650K. Leaning towards new construction, aiming at 3000-4000 sq ft. Existing SFH seem to go for $700-900K, so it seems worth it to try build new if possible, but I'm seeking your thoughts as I'm a newbie - not to the area, but to buying in the area. If building new on a lot with existing home, would plan to try for deconstruction/donation of existing home materials for tax benefits.

Thanks so much for your thoughts, and Happy Memorial Day Weekend!