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samiam1611

custom home or renovate old house?

samiam1611
hace 9 años
I am planning my realistic dream home. I have some particulars that are difficult to find here. The area I want to (and currently) live in is highly developed with very little land for sale. So I wouldn't be surprised if I ended up having to renovate a house instead of building a custom house from scratch.
Since this is a realistic dream home, there are certain concessions I am willing to make to keep the price reasonable.
One reason I feel like I need a custom house is this: I am and intend to remain childfree. I do not need a big house! I want a big master bedroom and could use the other room(s) as a dressing room or storage.
I want an open floor plan. So many houses here have formal living rooms and dining rooms. If I were to buy an already made house, is it possible to literally knock down walls and make an open floor plan, or would that like, make the floor above collapse?
I want an entry/mudroom. Other than that, I am fine with the main floor being one big kitchen/den combo. Would that be cheap? (speaking of a custom home here.)
Because I don't need many rooms in this house, do you think building a custom house would not necessarily be super expensive? Like under 300k? I mean I know there's like a million factors in building a house but just make a guess.
If you don't know anything about custom houses but know a thing or 2 about knocking down walls/major renovations, let me know if that is a financially and structurally feasible option.

Comentarios (5)

  • User
    hace 9 años
    Location is the biggest determinant of price on a new build. Next is complexity of the build. Third is level of finishes and amenities. The smaller the home, the larger cost per square foot cost will be. Renovating cost per square foot is more costly than building new.
  • Curt D'Onofrio
    hace 9 años
    For an open floor plan, you sure can knock down interior walls. Two things will be needed though. Someone in determing what wall(s) are load bearing or not. And if knocking down a load bearing wall a structual engineer to determine size of beam needed to support the upper floors
  • PRO
    The Tim Hawkes Team &
    hace 9 años
    If you decide to renovate you could use a Homestyle renovation loan. It allows you to finance the renovation costs into your current mortgage. I'm sure someone in your area offers it. Instead of spending tens of thousands of dollars up front you can increase the cost of your mortgage payment by a couple of hundred dollars. It is a newer program so not many are aware of it. Your home is then appraised to include the added value of the renovations. We just helped a client here in Utah do a renovation loan where they did $147,000 worth of repairs and additions. Keep in mind this can also be used if you purchase an existing home. You can include the cost of the renovation in the loan when you purchase. The main rule is the improvement had to be permanently affixed to the property and add value. You can use it for anything from fixing a roof to installing a pool. I am personally using it to put in a yard and fence in a house I moved into a few months ago. It is a Fannie Mae program so is available Nationally.
  • PRO
    Dytecture
    hace 9 años
    Última modificación: hace 9 años
    Most older houses have better location so this alone would help maintain the renovation value.
  • PRO
    Endeavour Developments
    hace 9 años
    We're up in Calgary, and 300k would be a very tight budget to build a custom home. Renovation would definitely be your best bet. However, we're not familiar with the pricing where you are.

    It would definitely be possible to open up walls. However, you would need a structural engineer, or a very knowledgable contractor to let you know which ones are load bearing and which ones are not.
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