Buy Old – Build New
Custom Home Building in 2011
Don’t let the real estate market spoil your dreams. The confluence of low real estate costs for existing homes and increased costs to build new due to code changes has opened another door for folks still wanting to build a custom home. New building codes introduced in the last few years have dramatically increased the cost to build a new home. The State Fire Marshall’s mandate that all new homes have fire sprinklers (very expensive for those on well water), the urban wildfire interface and the new Cal Green codes have added costs for new home building into the tens of thousands. All NEW construction after January 1, 2011 is required to comply with these codes.
Using an existing home also allows for savings in infrastructure (septic, power, well, driveways and mature landscaping) that is already in place. Desirable existing neighborhoods and school districts are easier to access with the selection of an existing home. We are developing case studies that demonstrate a substantial savings for our major overhaul plan. These overhauls are not remodels. The existing home in torn down to the foundation or subfloor with only walls that facilitate the new design left in place. All electric, plumbing, heat and air and finishes are new. Insulation and windows are new and built to home performance specs. Financing is more obtainable as the existing property is mortgage ready. It issier to get a line of credit on an existing home than a construction loan for a new home.