Home Buying in Pleasanton>Question Details

Nancy Chin L…, Renter in Pleasanton, CA

Is it better deal to buy a land and then build a custom homes?

Asked by Nancy Chin Lam, Pleasanton, CA Tue Apr 10, 2012

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SERGEY FEDNOV *** 424-777-9377’s answer
It depends on what price you will pay for the land, what area and if you can wait before your new house will be build.

If you have ability to purchase land - right now is very good time!
However some areas right now you can purchase already build house for less than what it will cost you to build a new one.

You have to consider a few factors - if you wish to find out more info - just call me i'll be happy to help you.

Please feel free to call me 424-777-9377 - i'll be happy to help you out.




Thank you for your time.


Should you have any questions - please feel free to call me Toll Free: 1-855-TRUST-55 (1-855-878-7855) ext. 777.



Sergey Fednov

President - Realtor®
- Trust Sale Realty -

Residential & Commercial Real Estate
_______________________________
Toll Free: 1-855-TRUST-55
Toll Free: 1-855-878-7855
Phone: 424-777-9377
Fax: 310-356-4925 http://www.TrustSale.com http://www.TrustSaleRealty.com
Lic# 01896869
6 votes Thank Flag Link Wed Apr 11, 2012
Nancy,

Lot of factors go into making a sound decision...general answer to the question is "NO" as your cost per square foot to build a custom home is much greater than a builder's cost when building several at the same. However, current market condition brings great opportunity on both sides. As Sergey stated, it is a great time to acquire land as land values adversely impact the most in a down market. On another hand and depending on the area you may be considering, you can currently buy already built homes for much less than what it cost to build the same home from scratch.

Additionally building a custom home will require a substantial time investment on your part to supervise and monitor each step of the way and if you do not have generous time to allocate to it, the endeavor could be pretty daunting. Another item to keep in mind is financing; land financing is not that easy and construction loans require much greater down payment requirement from the borrower than if you were to buy an already-built home.

Of course if money is not an issue, building a custom home can potentially bring you much more satisfaction as to what your ultimate home will look like and meet all your expectation.
Having said the above, I urge you to find a Realtor that you can rely on and seek his/her advice in making a sound decision.

Best of luck,

Steve Mohseni
0 votes Thank Flag Link Sat May 19, 2012
Nancy,

That is a great question and difficult to answer. It depends on the price point you are trying to stay at. I recently did some research for a client asking the same questions. To build a nice custom home it is going to cost around $250 per square foot. That includes everything but the land. That number is very conservative on kitchen and bathroom upgrades. That number can increase really quickly if you want a high end cabinets and appliances. Currently the average price per square foot for a resale is around $330 per square foot in Pleasanton. With our inventory status it is difficult to find something you will like.
In the long run it most likely makes the most financial sense to buy a resale. Each scenario I ran for the cost of construction and land cost the property would have been really close to being upside down. Meaning the finished project would be worth less then what you have into it. Again in today’s market it is best to try and find a resale and make close to want you want.

Please Visit TriValleyHomeSearch.com to learn about the different neighborhoods in Pleasanton!

Regards,
Dan Gamache
925.918.0332
0 votes Thank Flag Link Wed Apr 11, 2012
Good Answer. I learned something!
Flag Wed Apr 11, 2012
It depends on your timeline to move, money available and financing. In most cases you can get a home for less than what it will cost you to build "right now". If having the "custom" home to your liking is what you really want and you have the cash to buy land then you can get very aggressive because land is not moving much. If your in Pleasanton, I know of some land available that is very very nice and dormant.........Show them the $$ and you can have the view and serenity of Pleasanton. For more info visit my website a


Best of luck to you in whatever you decide!
Web Reference: http://www.talk2fabian.com
0 votes Thank Flag Link Wed Apr 11, 2012
Nancy, At this time it is less costly to buy than to build as inflation has pushed up building costs.
Ines Eiras BHG Realty 510-305-8128 http://www.ineseiras.com
0 votes Thank Flag Link Wed Apr 11, 2012
It depends on how much you pay for the land, but you need to understand that developing raw land - I did it for years - especially if you need septic and/or well, is a complicated, time consuming, and potentially expensive process. Even if you have access to services it's like having another job, and takes a LOT of time.

The reason to do it is probably because you have a vision of your dream home that you can afford and are unable to find anything else already built that's suitable. However, I wouldn't even consider it unless you plan living there for a long time. It can also be very stressful on a relationship and you can count on it ending up costing a lot more than you thought.

Best Regards,

Lance King/Owner-Managing Broker
lance@fixedrateproperties.com
415.722.5549
DRE# 01384425
0 votes Thank Flag Link Wed Apr 11, 2012
No, not financially anyway. If you want a home that fits your exact specifications, yes. But when it comes to cost ("better deal"?), developers will always get volume pricing that lowers the construction cost per square foot. But if you have the money, very few developers can compete on custom quality, design and options.
0 votes Thank Flag Link Wed Apr 11, 2012
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