Can you really build a house for $50 sq ft?

Question

My husband and I have been totally frustrated trying to find a home for over 2 years. We live in southern utah and the market is a mess. We are at the end of our rope renting and would really like to settle our family down. I search the mls everyday and have foreclosure list, but since I am very picky about schools and have a child with a disability I have found nothing in our price range.

My husband built a home in this area in 1997 for less the $50 a sq ft. He did almost all the work himself or with the help of family and friends, paid less then 5k for land, and since he was single he lived very cheap while building.

Now it is 11 years later. Can I build for $50 a sq ft?

I have found several lots in my dream schools area for my kids (my #1 prioirity) for 80k , and permits/impact fees are about 20k, so I am at 100k to start. All the lots around the good school have strict building requirements, min sq ft on each floor, exterior requirements, landscape requirments etc so I can't always go with the least expensive options.

I have picked a 2 story 2500 sqaure ft plan + 300 sq ft bonus room over the garage. 1250 up 1250 down. It was the plan that would be accepted by the subdivision but seemed the least expensive to build. the house is a colonial rectangle, all plumbing in one area, no vaulted ceilings, no expensive trussess etc.

I decided to buy a materials list for the plan. My husband work can get him alot of materials at cost, The rest I got bids at HD and Lowes as well as a local lumber yard. The materials bids were much less then expected. Building is at a near halt in southern utah and the big box stores were willing great discounts in writing.

Now since there is not much building going on sub contractors are hungry. I have subs begging to give bids. labor is going for 60% off what it was a few years ago. I took 3 lowest bids from reputable subs in each contract and took the highest bid and when I get to the grand total for materials, lot, permits, labor I am coming up with 234k to build the home including finishing the bonus room, so it is very close to $50 a sq ft? I did include my husband who is a finish carpenter, installing the doors, trim, and roof but nothing else (even though he could do alot more work if necessary)

I am a little scared to startup a big stressful project because everyone says $100 a sq ft is average these days. If I have multiple low bids should I trust I can pull this off? I am not puting any fancy finshes inside the house except what I have been lucky for my husband to get at work.

A house this size in the neighborhood would sell 330k at foreclosure, and they are listed at 400kish if not bank owned. I can only afford 250kish so this would be the only way to get anything in this school area for our family.

Answer 1

Sounds like a plan. However, you still have to pay rent until the house is completed, plus insurance,construction delays, weather delays-----

For me, right now I would consider two other options. First look at homes that have been foreclosed on, houses up for bid, or are for sale by owner.

The other choice is a handy man special, a fixer upper.

The advantage of those choices is that you could move in right away and save all of that rent money. The housing market is going to turn around right after the election, so any monies you invest in a home right now will give you a good return. It is a buyers market right now. Just make sure you do not sign an adjustable rate mortgage like so many fools did.

Answer 2

MAM, I WILL BE HONEST NO SUGARCOATED ONE SIZE FITS ALL BULLSH?? ANSWER.

FOR 50.00 A SQ.FT. THAT MITE AND I MEAN MITE COVER THE COST OF FRAMING, ELECTRICAL, AND PLUMBING LABOR AND MATERIAL. ALL BUILDING MATERIALS ARE AT THE HIGHEST EVER AND THAT MY FRIEND HURTS FUTURE HOMEOWNERS AND BUILDERS ALIKE.  50 A SQ.X2500=125K  MAM, I AM NOT TRYING TO BURST YOUR BUBBLE JUST BEING HONEST SO TOO LOCK AND KEY A HOUSE THAT SIZE AND TO BUILD IT U B C (UNIVERSAL BUILDING CODE) I CAN'T SEE THAT HAPPENING.

WHY DON'T YOU TRY THIS THESE ARE DESPERATE TIMES FOR DEVELOPERS WHY DON'T Y'ALL SEARCH AROUND FOR A DEVELOPER THAT FINANCES HIS OWN PROJECTS BUT KEEP THIS IN MIND WHEN A BUILDER FINANCES THERE IS USUALLY A BALLOON IN 3 TO 5 YRS. TO GET RE-FINANCED OR PAY OFF IT IS A LITTLE RISKY YOU ONLY LIVE ONCE. GOOD LUCK YOUR VENTURE

Answer 3

I only read the heading question, but I think I can safely say the short answer is NO.

At a point maybe 8-10 years ago, then possibly, but materials alone will easily top 50a sq, and then you have to deal with the GUARANTEED overages.

I have been a construction lender for many years, and in my experience, not one project finished inside of budget.  There are ALWAYS unforeseen costs... ALWAYS.

I hope I am wrong!

Good luck with your project.

Answer 4

in your situation I would say yes, just remember, budget everything and when you get to a particular item that can't be done under your budget price then call in your hubby. I have built my own home and helped on numerous others, it is very possible.

one place you might check with is ubuildit.com

Answer 5

Depending on material prices and availability- I would say yes.  Especially if your husband has done it before.

I have an acquaintance who built theirs about 3 years ago- right before Katrina hit.

They build a 2200sqft brick/ slab and moved in at just over $32/ft. Or just under $70k. Material cost has gone way up since Katrina-- but is coming back down.

At the same time, about 3 years ago, my mom and dad had a new home built for $76k and it has about 1500ft of living area. That works out to about $51 per foot including  all labor and materials. Again that was before Katrina.