Home Buying in Lakeville>Question Details

X, Home Buyer in Lakeville

I was told it is a better business decision to to buy a package deal rather than buy the land and be my own general contractor. Is this true?

Asked by X, Lakeville Wed Jul 11, 2012

I thought it would be cheaper for me because I could knock off 10% to 20% mark up from a general contractor on their subcontractors.
This direction came from a realtor. Could it be that the realtor loses commission when I buy the land outright at a lower value than if I buy the total package?

Help the community by answering this question:

Answers

6
If your interested, I know an excellent builder in the Lakeville area who would work with you in building a new home and let you act as the general contractor, yet still give you guidance. Give me a call if you would like to discuss - 508-415-7430.

Michael Callahan
Uptown Realtors, LLC
Middleboro
0 votes Thank Flag Link Fri Jul 13, 2012
You have already gotten some advice I would urge you to consider. Are you a GC already? Do you have the contacts with the sub-contractors so you know you would get the same deal as the builder in a builders package could offer you? Your 10-20% savings could EASILY turn into a 10% upcharge if you are not experienced and have the contacts already.

Financing is certainly another avenue to consider if you are not a cash buyer.

There are really pros and cons to both avenues, your realtor may just be trying to advise knowing full your personal situation.
0 votes Thank Flag Link Wed Jul 11, 2012
Wow- I think that is a very personal decision depending on the buyer.

First off, do you have any GC experience to be contracting a house yourself?

Secondly, financing a construction loan is completely different than financing a purchase. You will need to have some sizable skin in the game. Bank will not give you a construction loan if you are not a GC yourself.

If you are doing this strictly to save money and you have no experience building a house, then a wish you a lot of luck. And probably if you are on Trulia asking this question, you shouldn't be trying to contract your own home.
0 votes Thank Flag Link Wed Jul 11, 2012
What you are saying is possible, but unless you know what you are doing the subs can take advantage of you which can eat up your 10-20% mark up. It could possibly cost you more to be your own contractor plus you will be learning on the job - and that is your house. Subs do better work for those contractors they think they will get future business from. If you mess up something and an inspector makes you do it over that eats into that 10-20%. I would think long and hard about it.
0 votes Thank Flag Link Wed Jul 11, 2012
Are you paying cash? It is hard for a builder to get a construction loan in my area, no chance for what you propose. Good luck,
0 votes Thank Flag Link Wed Jul 11, 2012
Unless you are in the construction field, you need a general contractor. The only thing I do for myself is mortgages, for everything else I hire an expert.
Besides a total package would mean professionals will handle everything, it is easier to finance.
0 votes Thank Flag Link Wed Jul 11, 2012
Search Advice
Ask our community a question
Email me when…

Learn more

Copyright © 2014 Trulia, Inc. All rights reserved.   |  
Have a question? Visit our Help Center to find the answer