Buy, build, or add to?

[rentalguy1]

Long post, so thanks for reading in advance. I could use the help...

Since we have a new baby on the way, we are going to need more space. We bought this house a little over 5 years ago, never intending to have more children. It is a little under 1300 square feet, and has 3 bedrooms/2 full baths, LR, DR, decent sized kitchen, attached 1 car garage, and unfinished basement. We are on what was a double (100'X150') corner lot. Before we bought the house, the back half of the property was cut off and sold to a family member to set up a nice double wide on. That means our lot is now 100' wide by 75' deep.

Due to zoning laws, we cannot add on to the back of the house because the double wide is so close. We could push out on the side where the garage is now by about 10'. So enlarging and finishing the garage is a option, but the basement is only about 2/3 the size of the actual house, and that would make any plumbing or HVAC modifications a real problem. It is more difficult than just demo'ing the garage and digging out a crawl space, because the last 6'-8' of the actual house is built on a slab, and there really isn't a way to plumb under it.

The other problems with adding on here are that the laundry would still be downstairs. I have a spinal cord injury/disease and a partially paralyzed right leg. I can do the stairs pretty good right now, but not for many more years. We also took out the only bathtub in the house and put in a walk in shower (to make it easier for me) last summer. It's hard to bathe a toddler in a shower. Also, the house was built in 1950, and bathrooms were not a priority back then, so whenever anyone has to sit on the throne their knees are forced into their chest because the room is so small.

Our next option is to sell this house and buy a larger one. There are several houses of the size and in the price range that we need right now. We're looking at stepping up to about 1800-2200 square feet in the $150K-$175K range. The bad things about this are that while it would be a prime time to buy a house, because of the market, I'm not so sure how hard it would be to sell our current house. I would like to think that because of it's size, location, amenities, and price (about $80K-$90K), it would be fairly easy to sell. We bought it as a HUD foreclosure for $60K, and put on a new roof, new vinyl siding, new vinyl windows, new heat pump, new water heater, and updated the electrical when we bought it. These upgrades cost about $20K, and we would be able to at least recoup the cost. The other thing is that I've never had a mortgage, and I have no idea on how all that works. I don't know how much I would have to put down on a house, or how muck closing costs would be. I am also eligible for a VA home loan, but I have no idea how that works. I am lucky in that money is not tight for us right now, but I am a tightwad, and I would absolutely hate to turn loose of tens of thousands of dollars for down payment, closing costs, and upgrades to another house while paying the doctor bills for a new baby and sending another child to college in a few years.

The last option is building a house. Again, I know absolutely nothing about the process. I do know some folks who have done this, and that it is a headache during the process, but they have all been happy with the finished product. We could get exactly what we want and need by going this route, but at what cost? Would it be cheaper than buying a existing house, or more? I know the first thing we would need is a plot of land, and that would be hard to find in the city. We're not opposed to moving to the county, but we would have to pay tuition for our kids to go to the city schools (which are excellent and where all of my son's friends are). It would also require pretty major adjustments to our lives, because we are in close proximity (literally minutes) from our son's school, my wife's work, grocery stores, pharmacies, general shopping, restaurants, the lake, and the shooting range. We could do it, but it would be reluctantly at first.

My family actually owns a small farm about 10 minutes away from our current house. It may be possible that I could buy a acre from my dad and build there, but I'm not real sure how receptive my dad would be to the idea. We don't work the farm, but dad does lease it to the farmer behind us, who runs his cattle in our fields. I have no idea how close any utilities would be to this location, though. That could end up tacking on a huge cost.

I'm also not opposed to buying a new double wide instead of buying or building, but I am a little concerned about the quality of something like that versus a stick built house. Of course if we did this, we would place it on a permanent foundation. Any advice you can offer is appreciated. My head is spinning, and I truly don't know what direction to go for the first time in my life.

[nightrunner]

I would suggest to buy another house.

As an electrician, I would love to see more people starting to build houses right now, as work is slow, but its not really smart if you are looking to save money right now.

I helped my dad build his house(3500sq ft. house, 2500sqft. shop on 2.5 acres) about 5 years ago and all the paperwork and permits and scheduling will drive you crazy. And I have been this business for 5 years and he has for 20+ years, even if you know what is going to happen and when, it is aggravating. My advice is if you do choose to build, hire a general contractor.

It is a good time to buy right now, prices are lower but like you said, it may be hard to sell.

I would suggest against a mobile home. It will be cheaper now, but if any repairs/upgrades need to be done, everything costs more. Most major things have to be bought from a mobile home store. There is no access to the attic and everything is sealed underneath.

Good luck with your decision.

[peejman]

I came to the conclusion that you can buy much more cost effectively than you can build during my relatively recently ('08) relocation (from Church Hill). Our house sold early in Feb, our first child was born in late Feb, we lived in an apt for 6 months, and bought a house in July. We lived apart for almost the last 4 months of her pregnacy as I'd started a new job 100 miles away. That really wasn't fun.

While I wasn't able to sell my house for what I wanted, it did sell in about 6 months. Cost per sq ft wise, it's nearly impossible to build one for what you can buy one for. Many houses we looked at were in the $80/sqft range. It'll be difficult to build anything for less than $100/sqft... unless you have connections.

I also helped my parents build their house about 10 years ago. Scheduling work and inspections are a hassle. Really, the whole process is a hassle. Likely not something you want to be dealing with while you've got a new baby. Personally, I'd say contractors are like lawyers... 99% of them give the rest a bad name. It's hard to find a good one.

The mortgage thing isn't a big deal if you've got good credit and enough cash for a 20% downpayment. If you (and not the bank) own your current house, that shouldn't be a problem. Get pre-approved through a couple of different lenders prior to house shopping. Again, IF you've got good credit, play them against one another to get the best deal. EVERYTHING is negotiable. If you want to work with a realtor, I know one in the area I'll recommend.