I built a cabin myself over a 10 year period. I framed, plumbed and electrified it with help from videos! I owe 25g on it but it's 2000 sq feet on 23 acres (I'm happy with that)! I'm far from a genius but passed the FIRST plumbing inspection. I did one circuit at a time and had to pay an electrician to fix my mistakes ($240).... just don't bring a level if you visit us!
Congrats on your cabin! I would be hesitant to build one because as a perfectionist I would only see the mistakes I had made once I was finished. Also I have a bit of the over-engineering gene.
That's different than what she's talking about. You're a handyman. She's not. You're saving money by building your own house. She's going to be paying everything out of pocket for everyone to build the house for her.
Built my house. Problem with "building" a house is it's never done. First it's the little finishings that take forever. Then it's landscaping. And here in Canada you have to develop your basement. Before you know it's 5 years later and your new house ain't so new anymore. And if you have kids? They'll age the house at twice the rate.
The new home subdivisions in my area have the worst lots and often come with HOA fees. Privacy fences are not allowed. Homes are so close to each other that your view is of your neighbor's living room.
some houses were built in my area they were 3 stories high and so close to each other it was possible to open a window and shake hands with your neighbor, ugh
All this sounds awful. Plus a wondrous view of the highway. All the things above mentioned plus this is what I see in new tract home building. Ugh. I drive by it and can't imagine who would throw away their hard earned money living in that squeezed in nightmare.
I used to work for a construction company they build luxury custom homes starting at 5 million dollars. Every single one of them have all kinds of problems that owners have to deal with for years. The way they run their business is hire contractors that build the house and they just oversee the process. At the end of it they give the owner a 4-5 pages list of all the contractors that build the house. A lot of these people don’t even know what they are doing. I would only build a house if you know your contractors very well and you are ready to overspend because they will make sure you do that.
@@dougwest3272 Let's not make any crazy leaps here. I find his videos very informative. But who knows what the callers question actually was? She got like two words in.
Building a house is like choosing a spouse. Choose wisely. Be very selective about your builder. Ours was a professional builder with great organizational skills. Every decision we had to make was done about 3 weeks before it was scheduled. We told him to give us 3 choices that went with our décor and were within the budget and we picked from those 3. He was also just a great person. We're still friends 21 years later.
@@codorin It's not luck if you do your due diligence. You're hiring somebody for the most expensive job in your life. Check references and do an interview before you sign a contract.
@@codorin , I relocate to valencia spain for 1 year and bought an apartment in the city. I had a contractor from paraquay, he was the ultimate contractor. He and his crew did perfect work. I was blown away, I wish I could import him to USA.
He's not out of touch with reality. These kind of choices and decisions got him where he is now. He's only sharing the same advice to the world to help. The only problem is we are not all like him as a person. People get lazy, try to do things on their own, but Dave figured this stuff out and is extremely good at it. It's not impossible, but it's never easy. Creating good habits will most likely produce good/positive results. Dave probably has zero bad habits and he's a logical thinker.
You don't have to have millions to build a new house. If you do you love in an expensive area. I have a huge new 4bed 2 bath house in fl with half acre of land that easily in NY goes for a million but her got it built new for 450k.
Building my house was the best decision I’ve ever made, my friends bought homes that were 100 years older and only saved 20k lol I’ll take my brand new, super efficient home.
That depends on whether you get a good builder or not. A lot of these newly built homes are cookie cutter garbage where the contractors use the cheapest materials possible and cut as many corners as possible and you end up replacing almost everything in 5 years because they didn't use quality parts.
@@kennethobando5755 I would have a 100-200 year old cabin with a wood stove and love it. As a kid we lived in a village of about 300 in such a place and I slept on the screen porch year round with the crick just a couple hundred feet away, which was the source of water to flush our toilet. Lots of stars at night and bonfires with the neighbors, and enough space to use the potato launcher.
As someone who has been searching for their next home, Dave is totally on point. Building a house is like shopping off the ala carte menu -- EVERYTHING is an upgrade. To get what you want, you end up busting your budget very quickly. I’d rather see everything laid out and know exactly what I’m buying as is. Sometimes you can walk in on a deal and pick up a brand new home that someone had built but couldn’t close on it. The builder wants to unload them in a hurry and you can get it for thousands less than had you built it yourself. I did this once and made $$$$$$ when I sold it.
I've always wanted to build my own house to fit my personal needs. Being 6'10", I have to duck under normal sized doors. It's little things like that were I'd want 8ft doorway, higher kitchen counter and a shower head that I dont have to bend down for. Of course you can make those changes to an already built house but it's still always something I've wanted.
@@caoimhemouse4933 I'm 90% sure I will, just have to get that nest egg built up. Couple years away from finishing my electrical engineering degree with no debt so hopefully it won't be too much longer.
For my example I bought a property, had a trailer on it, lived in it for 4 years, saved, spent 600K on building a new house, tearing down the trailer, adding nice landscaping. Bought it for 150K in 2012, spent 600K, now it’s worth almost 1.1M
My dad built a 4,500 sq ft house for $280k with his own money. Sold it 4 years later for $600k. Made a profit. He's a contractor so he has all the contacts to make new houses. I'm planning on making my own smaller house as well
What Sq ftg are you thinking about building? I'm 18 living with my parents but want the first place to move out for good in to be a small house I build for the experience and the luxury of choice! I careful to not be unrealistic and immature about the decisions.
This is amusing and SO true!! My husband and I built our 2nd home together and the process was incredibly stressful; having to babysit the blueprints, having to get stuff corrected and dealing with a s-l-o-w building process. I learned a ton and thankfully my husband and I were a unified team throughout and the excitement of moving in helped cushion the annoyances. Not sure I would build again.
One of the main reasons to build new is the energy efficiency. New homes have a much higher code requirement for furnaces, air conditioners, insulation, energy seal...etc. I have friends that live in homes that cost $500 a month to heat in the winter. Our latest project, the Open Book Build, is costing $80 a month to heat in the same climate...way more efficient and comfortable. good stuff
I like Dave, but like Dr. Laura, he needs to work on his listening skills. Should have spent more time finding out EXACTLY what her question really was, cuz he clearly wasn't answering it.
I disagree because Dave basically answered the question with details and didn’t hide anything. What more do you want him to do? Do you want him to simply agree?
@@darkphasex Well... for one thing, he could have a little intellectual honesty and humility and admit that there's no way on earth that a 5 minute phone call with a person he's never met could result in anything close to accurate advice on the biggest financial decision of a person's life. This is my number one complaint with Dave Ramsey. He speaks as though he's an absolute authority on all financial decisions. Meanwhile, financial advisors who have a decades long relationship with their clients still spend weeks consulting with those clients and examining options in minute detail before making a recommendation.
As a builder and a former realtor and appraiser, Location, Location, Location is relevant to this scenario. Houses grow mold and need major work in east central Florida at least every ten years. They are overpriced and ALWAYS need work.Things to keep in mind are 30 year shingles are a brand name, not a truth, AC's need replacing inside of 10 years these days, plumbing needs replacing within 10 to 15 years, paint bi-yearly, etc... Cosmetics are irrelevant to these problems. Add 20-35K every ten years just for upkeep on a used home in this region. A top notch, quality builder is your best bet and yes, they are hard to find. Homework matters here. Building materials are expensive right now so your budget matters!!! Build for quality instead of show and you will be better in the long run. One final thing to remember, in appraisals, the land is the value, not the improvement (house) on it. 100k kitchens and 50k bathrooms add zero value, unless your neighborhood dictates it in the overall value. Happy house hunting!
@@jjjsmith2497 Your welcome. My realtor counterparts hate me....lol. as far as my builder " friends", well, they want it and wont pay so you get what you get. It's a very expensive lesson for many.
And this is why I rent. They maintain, I move when they quit doing so. They provide the appliances, I never have to move one single one nor repair it - and they repair very quickly. They pay taxes, I get a renters credit for taxes too. They have to sell it, I can move when I need, pronto. They shovel and mow, I enjoy lots of green space if I choose my complex right. Or my house. There ARE house landlords that will mow n plow. If I ever had had consistent income, I might have lived differently. But the downsides of ownership always outweighed the benefits for me.
I don’t agree with him on new or old and getting more for your money. People buy housed and later find out there’s a lot to be fixed or repaired that they did not see or catch I can go on forever.
Bought a spec home and wouldnt do anything different if I could do it over again. New build, everything is covered for an entire year and amazing warranty on my roof and HVAC. Where I live HOA's exist everywhere (new or used), my home has appreciated far faster in the 3 yrs I've been here than if I had bought a pre owned home plus all the used homes I looked for over a year needed work and there wasnt any difference in price. I looked for over an entire year. Buying from the builder was a lot less stressful (no bidding wars or BS from the owner not helping to pay for closing costs etc... like we were also running into on pre owned homes). Our rate was unbeatable at the time from the builders lender and they gave us 6k towards closing. Another thing Dave isnt considering is the fact that all new homes have to follow new EPA regs which means better windows, better insulation, etc... Any home before 2005 or so wont have these benefits. Our electric bill for a larger home is a few hundred less than it was in our 2001 home that we sold. You've just got to do your homework.
@Big Bubba Property taxes were already higher somewhat for where I live due to the fact that it is a master planned community in the boonies and we have to pay additional to bring power and water out here. In case you didnt know, when you buy a brand new home you can elect to pay lower taxes on the property for 2 years (raw land). Regardless, the state I am in has some of the lowest property tax rates in the country. I haven't noticed an increase that has shot up my mortgage. All the other things I mentioned are still reasons why regardless of whether my taxes increased $100 a year it's because I am making money off the value of my house all while saving a whole % on my interest rate versus where I was before and my electric bill also outweighs any small increase in my property tax.
I built my house in 2017 using cash and no mortgage. Cost about 150k total, 3,600 sq ft, tax assessment is 385k market value probably well over 400,000 at the right time. There is instant equity if you build a house correctly and cost effectively, build it not cheaply but not extravagant either. But you need capital going in a, interest on a construction to mortgage loan would probably hurt the equation. Unless you were building it to sell quickly.
This isn’t true in our circumstance. The most inexpensive Used homes in our area are around $230-250k and that was looking at about 1500 sq ft. We were able to purchase a new build with a loan amount of $196k that is also 1500 sq ft. I think if you use wisdom and don’t purchase all the unnecessary upgrades this doesn’t really apply. A lot of what Dave Ramsey says is a one size fits all approach like when it comes to credit cards and paying off debts smallest to largest. I get it and it makes sense if you have little self control (and most of us do) but if you are disciplined sometimes what he says just seems silly.
If your preference is new than that’s what it is. I believe it really depends on the location you build in and how long you plan on living there. Our starter home was a new construction but we bought in an up-and-coming area so we had 30k instant equity after closing and after living there seven years before moving to our current home we had built up over 80% equity. It really depends but we love new all the way. The only thing we don’t buy new is cars because of instant depreciation.
I HIGHLY disagree with this one. My husband and I recently finished building a house on 5 acres. It was a raw piece of land. We put on a well, septic power, and built a house. We live in Washington State. We built a 5 bedroom, 2.5 bathroom home on 5 acres for $337! Our home was appraised for $640k the day we moved in! I think Dave is a little too rich for this topic. The “decorator”? That’s absurdly strange. The common American family doesn’t hire a decorator. Know your budget....and stick to it. Do you research and you’ll get it done. You’ll double your investment immediately! You’ll avoid paying PMI because (not all of us buy a house with cash). We have bought a house already made and built... yes it was hard. Yes it was trying but it’s absolutely possible to stick to a budget and timeline that works for your family. $337 may seem like an insane amount in other states but for Washington that’s a great price. Depending on the state you build in, your base price would be much less.
What area you located at? I'm in Wa as well, Puyallup area. Did you guys buy and hold onto your land for awhile before you built? Did you hire a company to build your home? My wife and I are looking to do the same, been trying to find 5-10 acres of land first.
Jake Pappuleas We are so close! In Graham. We bought our land and built almost as soon as we could. We hired a “build on your lot” builder. I would not suggest that for many reasons.
Plus lumber was better quality "back in the day" Now it's all very poor quality. Yes, I realize that agrees with what you said about strength.. but even just functionality (holding drywall etc.) and cosmetically it's affected.
The New builds have the latest and greatest energy codes and building codes. Much cheaper to maintain. Existing there a a ton of things you have to remember. Older homes have a lot of hidden items. Old A/C units, windows and plenty of surprises. Trust me I-have been doing Real estate for 19+ years. Worked to top 100 builder doing land and development, operations and sales management for 27 agents. I used to teach a new construction boot camp. Helping people through the process and EDUCATING them the difference between new and existing.
Do as I say, not as I do.... She didn't even get into her own finances. He is projecting his problems on her. I normally agree but I did my own house, and per square foot I didn't pay more, I saved money.
You need to hirer a buyers boker/agent who has a certification in new home construction.and sales. You need to hire a buyer's agent on your behalf anyway even if you do not go new but re- sale as well. There are new homes in subdivisions new builed track homes were VA Buyers especially find home less expensive than the resale. Interview and you must always do your due diligence. When you interview your buyer's agent asked what certifications they have besides their license and being a member of NAR. National Association of Realtors
I have worked for several customers that thought they were building their dream house but near the end they decide to sell it and buy another house. Like Dave said, dreams change and many people hate the project/process so much they don’t want to be reminded of it by living there.
It all depends on what you mean by build your own home. Custom built from scratch, or buy a house from plans from a tract builder such as Toll Brothers/DR Horton etc.
My problem with new builts are the added costs for upgrades , fence, blinds(so expensive!) etc. Like my cars, I like to buy 2-3 used houses so the previous owner already did most of the hard work lol
Building a new house is great when you can build it all yourself - my husband and I are paying cash as we go and are at $56 dollars a sq foot for our new home. Would be very expensive if we didn’t do it ourself but if you have the skill it’s the cheapest option and easiest to cash flow
if this is your final home i would build without a budget simply to get what you want now vs buying cheaper items with the mindset of getting what you really want later when you can afford it. i did it with no regrets
Depends on the location, age of the existing home, use and how much work you are going to have to put in. Most of the places I was looking at needed new floors, paint, kitchen, bathroom reno, etc. If I have to do $60k worth of work to get it modernized I might as well just have it built for a bit extra with the peace of mind knowing that the plumbing isn't going to go out, the roof is gonna spring a leak or whatever else could go wrong.
In Oregon you will save a lot of money in yearly property taxes buying a used house You pay on the assessed value. For example a twenty year old house worth $500 thousand today probably is still assessed at $300 thousand. The new buyer only has to pay property taxes on the old assessed value (it does go up 3% a year though). Build or buy a new house for $500 thousand and you will pay property taxes on the full starting value and it’s assessed value will increase 3% a year too. Let’s say older house taxes are $4,500 per year the brand new house taxes will be 500/300 x $4,500 = $7,500. Something to think about when buying a house in Oregon.
I'm not sure honesty is the word I'd use. More like blunt and self-assured to a fault. He's the Web MD of financial advice, taking minimal and incomplete inputs and then using generalizations to give advice that he expects you to blindly follow. Compound that with the fact that many of his listeners have their pastors and church elders browbeating them into following the advice, and you have a recipe for lots of poor decisions. There's a reason personal financial advisors exist, just as there's a reason to have medical professionals instead of relying on Web MD. The information and guidance you use to make biggest financial decisions of your life shouldn't just come from a book you bought on Amazon, a 5 minute conversation on a radio show or even a $100 course you took over the weekend at your church.
I think building is fine if it's done with intent. Exemple: I wouldn't judge someone paying the premium of a new home if his aim is to build a up-to-standard energy efficient house, something you won't find on the market because the endgame is to reduce his carbone footprint because it's a very important matter to that individual, or say build a specific house made for someone with special needs, etc.
Agreed. Tiny houses built on big lots are becoming more popular, mostly because (with the help of solar panels and propane) you can sustain a large amount of self reliance. Plus smaller houses are easier to heat, discourage hording, and reduce overall footprint
A new spec home (never lived in) with the floor plan that fits your needs, with colors/finishes you like & with a lot size/location you approve of is great. It's ready NOW. It's hard still to check all those boxes and to coordinate selling current home or renting it out and closing on new one.
I think there’s something, however, in taking special pride in where you live...not so much what you drive...true enough. Pride in homes builds good neighborhoods IMHO.
ALWAYS PUT AWAY EMERGENCY REPAIR FUNDS JUST INCASE. NO UPGRADE UNTIL THE HOUSE IS PAID IN FULL. NEVER GIVE YOUR BANK A FREE UPGRADE BECAUSE THE HOUSE STILL BELONGS TO THE BANK IF NOT PAID IN FULL.
That is partially true. If you owe $10k and the bank forecloses on the house and it sells at auction for $150k after taxes and fees, the bank owes you that $140k.
Building a house does not cause divorce. Divorce is the product or poor communication and different value systems and expectations. Building a house can be very attractive if you plan on finishing off parts of the house yourself. I have known folks who built houses and they finished off the basement and are way ahead of the game. If the contractors do everything and you have many upgrades you will be 20-30% above a comparable house in the area. A good marriage can be strengthened through the house building process if both parties are paddling in the same direction.
For me, buying new in Texas 2 years ago was a MUCH better deal than buying an existing house. I bought my house pre-built for $210k. Houses around $200k that were already built were very old and outdated in the DFW area (where I live). So, I decided to build a new home for the same budget. It took the builder about 7-8 months to complete my home, and at the time of closing, my house had already gone up in value to around $225k. Great deal. Today, my house could sell for $280k. I got a beautiful brand new home for the same price as an outdated, used house.
Must be different in America. Here in Scotland you get way more for the same money if you build it yourself. You also get a blank canvas that you can adapt to your own needs. That and the lack of inherent problems through rot, dampness etc makes building yourself a no brainier here.
Built our current house (22 years) and was the opposite experience of Dave’s comments. Paid less per square foot than used market, lower stress on our marriage, no budget or schedule issues. Again, Dave is speaking in general but there are always exceptions.
Buying used is not always less expensive. For us it was location driven. We wanted used about 10 miles from where we built (same zip code). Used was much smaller, outdated meaning it needed a lot of work before we could move in for more money than we built one for. 18 months later our same floor plan in the same neighborhood is going for $50k more than we paid. Both neighborhoods are considered desirable and very sought after to live in central Florida.
Buying a used house is not the always the bargain you think it is. Older homes may have asbestos issues, lead paint, aluminum wiring issues, failing cast iron waste pipes, galvanized water pipes corroding, and structural/foundation issues. One example occurred in my area of my state. Approximately 30 years ago, a cement company poured hundreds of foundations using faulty cement. Now all the homes and condos where this cement was used have shifting foundations with huge horizontal cracks running through them. My 80 year old neighbor suffered this fate. It costed him $170,000 to have his house raised and foundation re-poured.
I respectively disagree! Used housing is "cheap" and well worth it. Until you have to tear practically half the house apart to remedy terrible choices the contractor and former owner made to keep things "low cost". Both my houses were used and both had EXPENSIVE design flaws I could have prevented for very little additional cost had I directed the construction.
Good points! So many homeowners are unqualified (certainly not licensed!) to do electrical and plumbing, but they do it anyway! Then you find out some guy 30 years ago put in substandard wiring (which might not have been substandard then, but is now) which is overloaded or frayed, starts a fire, and burns your house down. That would never happen with a legally built new home.
In 2020 in South FL, building new w a builder costs less than buying used. $190 per sq ft compared to the $225-300/sq ft for a 20-75 yr old house. Not the norm, but it is our current reality.
@@petergriffin7121 piping, roof, fascia damage, air conditioning units, water heater, hurricane code windows & doors... so many things to cover without even considering decor or furniture. New build seemed to make sense for our situation.
My home is zoned for multiple units...I'm building a small 2Bd, 1Ba in my backyard to have a rental income. I'm nervous, first time building from scratch...I've heard nightmare stories....wish me luck!
Scorpion Thanks for the 🍀. As for the renters...I have 4 other rental houses...never had even one problem. But, I do use a phenomenal Property Management company, so they handle any potential problems.
My brother lost 30,000 bucks to a bad contractor when he had his home built. He would have made out better with an off the rack home already built. And guess what in 10 years your new house will be a used house.
That's some interesting logic. It's true that in 10 years, my new home will have 10 year old appliances, a 10 year old roof, a 10 year old furnace, etc. All of those things will still be well within their normal lifespan, and I will have spent zero dollars replacing any of them. Can you say the same about that used home that already had a 10 year old roof, furnace or appliances when you bought it? Um no. You can't. So the money you thought you saved was actually just deferred for a few years until you had to replace all those things. Either that, or you managed to limp along with what you had, and now you have 20-year old stuff that is all on the verge of crapping out on you.
@@McScott76 I was not talking about a used home I was referring to a custom home which in most cases is way more expensive then buying new construction ( hence an off the rack house vs. a bespoke house) Just like bespoke designer clothes are way more expensive then a new item of clothing bought off the rack at say J.C, Penny, And a new off the rack house usually comes with new appliances as well as a new roof and A/C and furnace.
I built in 2004. We could’ve built and or bought a used home with similar square feet and design. 14 years later our home is worth more money than the others
I don’t know that I agree. When you build a home correctly you finance the cost and have instant equity in a brand new home. On a balance sheet basis it is a smart decision
Absolutely. My new home has appreciated 100k in 3 yrs. My previous, used home appreciated 30k in 8 yrs. It's a smart decision in many ways. Ours didnt cost any more than used houses after all the work we would have had to put into them we would have been the same cost wise and no weekend projects!
Big Bubba we both agree there is value in home equity but it’s tied up hence the opportunity cost. If you had that cash available in today’s market you are LIKELY to see faster gains putting it to use with underpriced stocks. So you would still have equity in a house you build which was my initial point and you would use the cash not spent on a down payment investing in stocks that are again LIKELY to go up soon
Big Bubba well yeah that was the initial point I made was the value of home equity. I’m just giving my personal perspective on an investing strategy which means it’s neither right or wrong 🤓
Dave, focus! Where is all the same stuff? How much you're making, where money come from, do you pay cash, where all of those questions? I mean I'm not even in the US and I want to hear about the budget in LA housing market.
Building a house was physically exhausting. It took 3 months to research and select a homebuilder, another 4 months working with the homebuilder to agree on a design and then select materials, and fixtures, and another month to select the interior and furniture. If I could go back and do it all over again, I'd still choose to build. The biggest reason is the environmental upgrades. Better insulation, double windows, radiant floor heating, and a power generation system combining solar system and residential fuel cell. Our energy costs are a net $3000 cheaper per year and our carbon footprint is nearly net zero. It was a lot of work and there was some fighting but it's fine as long as there's communication, give & take, and mutual understanding that one person has the final say.
@Josh The annual energy savings and CO2 reductions from our house will FAR outweigh any emissions associated with the build. We are exceeding 100% self-sufficiency (we sell the excess electricity). Thanks to the windows, insulation, and running hot water pipes under the floors, we only have to heat the house a few days during the winter.
We had our second home built in a subdivision. It was a lot of fun watching a neighborhood grow from a cornfield, and having everything brand new, clean and tidy. And then the housing crisis hit. 13 years later we sold and made zero appreciation. Loved the house but it was a terrible investment. Our house was $250K but there were people who really bought at the top, paying nearly $400K in 2006. To this day they are still $100K+ in the hole.
I'm a Licensed general contractor in the Los Angeles area. After watching this video I would say i agree with a lot of the points made. But building your own home in my experience will almost always be cheaper. In short a median price per sq.ft for a house in Los Angeles can range from $350-$550. Typically a contractor will charge from $180-$300 a sq.ft to build a home. Using the price points above it's easy to see that you can save a lot of money by building your home. But huge down side would be the huge upfront cost of buying a lot to build on, and getting a loan or also paying for construction out of pocket. If money is not an issue, building your home will likely be cheaper.
This lady is in for a big disappointment. I’m a general contractor and you have no business building a custom home unless you can afford to spend twice the original budget. If you come in on budget, great, but dont ever plan that way because upgrades, cost increases, unforeseen conditions, and crazy building departments are a reality of the process
Me being someone who has owned houses in California, imo it's better to build a house from scratch than buying used. A lot of the times you're going to have foundation issues atleast in California. I've looked at hundreds of homes, and I didn't even need to get an inspection done to know the foundation was crap on the majority of them. With repairs on a used house, you're probably not going to save yourself any money vs building. I'm looking for land to buy to build my own house just not sure where. I've rebuilt homes I've bought before. The only thing I'd contract out is doing the slab as you don't save much money doing it yourself. Wiring a house is atleast 10k. I can do it myself with an owner builder permit for 2k with new romex wire along with everything else on the house to code in my city. If you can find land that already has utilties, then you'll avoid the usually hookup fees which are 10s of thousands. I recommend this only if you're a single guy as you're going to be working your ass off along with a bunch of headaches dealing with the permit process, inspectors, and utility companies.
People forget about trees when they build. It takes a lifetime to grow them!!! I didn’t realize how sad I was about missing trees until I built the first time. My second build was taking down an old old house and building on land with very established trees
Back in 2001 we built a new construction house and we picked a particular lot because of a huge beautiful oak tree in what would be the back yard. About three years after the house was done the tree started to die little by little. The trunk on this thing was pretty close to four feet in diameter and the branches were the same size of a smaller tree, in other words it was huge. I was concerned for the safety of my kids if one those huge dead limbs happened to fall on one of my kids playing the backyard, I wouldn't be able to forgive myself for their death. Also not to mention it was about 40 ft. from my house and if it fell on my house the house would be nothing but a pile of rubble. It broke my heart to have to contact a tree service company and have them remove it. After they left I went out a counted the rings on it's stump and counted out that that tree was 240 years old. That's living a good life, even for a tree. We sold that house a couple of years later and moved on. I'll never forget that tree though.
and add to that if the builder does NOT finish on time they pay your rent month to month after the expected finish date. Get it in writing or they will finish your house a year later, maybe. Trust me on this, I know from my Aunt whom built a house a few years before mine. It got finished 1 1/2 years after promise date. Mine got finished ( including final walkthrough ) 1 month late ( and I got a check for aprox a months rent )
That isn't the case here in my state. Used homes in established neighborhoods are more expensive. I could only find used houses in bad neighborhoods which were close to what I wanted in price. I looked at a house that I wanted in a good neighborhood $400K. I bought my house which had a 3 car garage which that $400K home didn't have and it cost me $160K. I did have to choose fixtures and paint put my yard in myself.
I had a house built and in my area, it was cheaper to build. I built in a neighborhood development, so there is differences between that and just building on your own piece of land. But in my area (San Antonio), it’s a case by case basis on what’s cheaper or not. There’s existing houses near me that were not that good of a price compared to what I have now. So I can’t fully agree with this one. It’s different in every region and for everyone’s needs. So generally he might be on point, but there’s definitely other variables.
Did you start with an architect or choose a plan from the builder's portfolio? Big difference. Did the builder have a comprehensive price or custom price at every turn? Many builders will build in subdivisions from a portfolio at very good prices because they are competing with the spec homes in the same neighborhood.
@@scorpion8rage Have you gone through the process in the sales room? My daughter and her husband tried to get a Coleman home built. From the down payment to selecting something better than FHA minimum, the price jumped $45,000. $600 for 20 ft of tile backsplash in subway pattern rather than checkerboard pattern. Same time, just an alternating pattern.. Many buy the house at rock bottom salesroom no upgrades price and have the upgrades done after at 1/2 the price.
@@idadho Yes, I've already fully compared with a builder and unless I change any of my plans the house will come out about $45K cheaper than an already existing home in the same area. The area is high-growth - high-demand. Pre-existing houses don't even stay on the market more than a week right now (usually gone in a few days)... this all drives up the prices (people in a hurry) equaliing... cheaper to build. Also, it probably helps that most have the misconception that it would be more expensive to build (like I did).
I love this guy's personality lol I'm currently envious of my sister in-law who is currently getting a house built while I'll be doing my thing moving around in the Navy with my family, this guy changed my mind haha.
A lot depends on the value of the land in the area you like. If the land is extremely expensive like Los Angeles, CA, you are best to buy a beat up old house, tear it down and build a new house in a good area. If land is not expensive, e.g., Kansas City, Missouri or Jackson, Mississippi, it may be better to buy a used house, rather than spending a lot of money to build. In other words, the construction cost may not be worth the investment when you finish building. Also, you have to rent for about 7-12 months during construction, unless you can live with family, etc. Also, property taxes on a new home can be very high.
I bought a new build and man we got it cheap. Super lucky. No fancy appliances, minimal AC but because it’s new it all works. Our house has already went up in value 90k since we bought it 3 years ago.
I built a house 20 years ago. I planned it, it was finished on time, and I still love it. Yes, a person would be upside down if they immediately tried to sell a newly built home, but if your planning on staying I'd build. Most of the homes in my price range were built right after WWII (60 yo) and needed electrical, plumbing, and a general overhaul. So they're in my price range and need 50-70k of updating? Then it is out of my price range. Stop typing....I am not handy at all, so I couldn't do it.
I never cared for a big house with more bedrooms and bathrooms than I needed. When I applied for a mortgage loan I was approved for $275,000 but I got my house for $170,000. Being single, I got a house big enough for ME with room to spare if needed. Never understood why some people feel the need to brag about how much house they have or the need to buy a home with 4 bedrooms when you're living on a 2 bedroom budget.
I'll build mine, I understand why people says it's more expensive, because they won't actually build it. In my case I plan to use my own hands and my 3 days off.
My husband’s family all built houses in the past couple years (two siblings and his parents), and they’re busier working on their new houses than we are with our 1990 fixer-upper house. Paint (toooons of painting to do in those huge houses for 2-3 people each), window coverings (which cost a fortune), sprinkler systems, laying sod, fences, adding cabinetry, filling empty rooms with new furniture, and finishing their basements-and one basement is urgent, because they’re financially tight and need to get a renter in there to add to their income. I would love to have a newer home with more space that doesn’t need so much updating as ours does, but man, brand-new homes seem like money pits!
I am an FPU Class coordinator, and have agreed with Dave on literally everything, until I saw this. Dave certainly knows wayyyy more than I do about real estate averages, and "in general" principles, but this is simply factually incorrect in some areas. We have built new in the Permian Basin (Texas oil country), and in inflated housing markets like this which are led by a stout local economy and a low local unemployment rate (we are at 1.7%) (pending market crashes, of course, like the '84 oil crash), it can definitely be cheaper to build new. It was for us by tens of thousands (probably about 10%, maybe more), and the day we closed (2014) we had $30,000 in immediate equity with full builder warranty of two years included. How do I know that equity amount? Because oil companies were moving some of our neighbors in 2013 and 2014 back to their hubs (Houston, San Antonio, Dallas, etc.), and they were bringing that much in equity with them when they sold here, having just built their homes months before (now keep in mind this was not a high-end, custom build). So in our situation, it was a no-brainer: build new!
In our area, new homes were marginally more expensive than existing homes ($5000, which works out to $4/sq. ft. more, nothing for someplace you place to live for a few decades), and the existing homes didn't have any of the features we wanted, such as large open spaces. Many existing homes still had those almost useless dedicated dining rooms that nobody uses except special occasions. What a waste of space, and not conveniently located out of the way so you could make it into an office. New house has the distinct advantage of all the new major systems like HVAC. Didn't have to replace the roof for 15 years, and didn't have to replace the HVAC for 25 years. Can't say that of most existing homes.
Everyone is different. If you have the money for it? Why not build your dream house. Get a project manager and build that home that u always wanted. Buying a used home feels like you are seettling for whatever on the market. Your force to like something
![ว้าว!ลุงบีมแบกทองมารับขวัญหลานกันยกบ้าน [cc] แดนแพทตี้ SS2 | EP.49 |](http://i.ytimg.com/vi/Osihq1OAs-4/mqdefault.jpg)
You should always buy used homes, if you buy a new one it'll lose half its value when you drive it off the lot
Depends on location.
@Councilman Les Wynan I've heard of housing crash, but this is ridiculous.
@Councilman Les Wynan Was it because you flipped it too fast?
Kbb had my house at 300k going to trade down for a all electric model
Bahahaha that’s amazing 😂
I built a cabin myself over a 10 year period. I framed, plumbed and electrified it with help from videos! I owe 25g on it but it's 2000 sq feet on 23 acres (I'm happy with that)! I'm far from a genius but passed the FIRST plumbing inspection. I did one circuit at a time and had to pay an electrician to fix my mistakes ($240).... just don't bring a level if you visit us!
Congrats on your cabin! I would be hesitant to build one because as a perfectionist I would only see the mistakes I had made once I was finished. Also I have a bit of the over-engineering gene.
Awesome 👍 we really want to do it
That's different than what she's talking about. You're a handyman. She's not. You're saving money by building your own house. She's going to be paying everything out of pocket for everyone to build the house for her.
Amazing!
You're living my dream. If I ever bought another house, I would have it on no less than 5 acres,
Built my house. Problem with "building" a house is it's never done. First it's the little finishings that take forever. Then it's landscaping. And here in Canada you have to develop your basement. Before you know it's 5 years later and your new house ain't so new anymore. And if you have kids? They'll age the house at twice the rate.
But dave, an existing house doesn't have any of the custom features I need to make my in-laws feel jealous
yeah but we know Dave would slap you upside the head for caring about what other people think.
I think your sarcasm meter is broken.
Easier just to tell them they aren't invited to come over.
🤣🤣
hahhaha
The new home subdivisions in my area have the worst lots and often come with HOA fees. Privacy fences are not allowed. Homes are so close to each other that your view is of your neighbor's living room.
That would be the worst.
🤣🤣
There's a difference between BUYING NEW and BUILDING NEW. And yes, I include customization on a tract home "buying" not "building".
some houses were built in my area they were 3 stories high and so close to each other it was possible to open a window and shake hands with your neighbor, ugh
All this sounds awful. Plus a wondrous view of the highway. All the things above mentioned plus this is what I see in new tract home building. Ugh. I drive by it and can't imagine who would throw away their hard earned money living in that squeezed in nightmare.
Built a house 4 years ago. It was a nightmare. I had all the things he mentioned and a crooked contractor on top of that!
Sorry that you went through that.
I used to work for a construction company they build luxury custom homes starting at 5 million dollars. Every single one of them have all kinds of problems that owners have to deal with for years. The way they run their business is hire contractors that build the house and they just oversee the process. At the end of it they give the owner a 4-5 pages list of all the contractors that build the house. A lot of these people don’t even know what they are doing. I would only build a house if you know your contractors very well and you are ready to overspend because they will make sure you do that.
We bought our house brand new back in 98 and we are still in it I loved buying new because we got what we wanted in it I picked out everything
Lol the caller didn't even get to ask a specific question before Dave went on a huge rant.
Bill D'Amico, right. I think she’s more confused now.
Bill why do you even watch listen and comment if you dont want Daves help
@@dougwest3272 Let's not make any crazy leaps here. I find his videos very informative. But who knows what the callers question actually was? She got like two words in.
He’s the bees knees.
@@wsdamico better than only 1 word
My husband and I built two homes and loved them both. The final cost always is more than anticipated.
Building a house is like choosing a spouse. Choose wisely. Be very selective about your builder. Ours was a professional builder with great organizational skills. Every decision we had to make was done about 3 weeks before it was scheduled. We told him to give us 3 choices that went with our décor and were within the budget and we picked from those 3. He was also just a great person. We're still friends 21 years later.
almost all builders are as cheap and as lazy as possible. you got lucky. almost lime wininng the lottery.
@@codorin It's not luck if you do your due diligence. You're hiring somebody for the most expensive job in your life. Check references and do an interview before you sign a contract.
@@codorin , I relocate to valencia spain for 1 year and bought an apartment in the city. I had a contractor from paraquay, he was the ultimate contractor. He and his crew did perfect work. I was blown away, I wish I could import him to USA.
It’s Easy to build a new house when you have millions in the bank.
Very different when you need a mortgage to build one!!!
Yes that is the problem with Dave Ramsey advice. He has millions of dollars, so he is out of touch with reality.
@@wesjimez2941
Having money is some peoples' reality.
Edit: And that said, I don't see *anything* he said here being out of touch with "regular folk".
He's not out of touch with reality. These kind of choices and decisions got him where he is now. He's only sharing the same advice to the world to help. The only problem is we are not all like him as a person. People get lazy, try to do things on their own, but Dave figured this stuff out and is extremely good at it. It's not impossible, but it's never easy. Creating good habits will most likely produce good/positive results. Dave probably has zero bad habits and he's a logical thinker.
You don't have to have millions to build a new house. If you do you love in an expensive area. I have a huge new 4bed 2 bath house in fl with half acre of land that easily in NY goes for a million but her got it built new for 450k.
So, how are you going to get your millions to make your building process "easy"?
Do rich people stuff to be rich people.
- Dave Ramsey
Building my house was the best decision I’ve ever made, my friends bought homes that were 100 years older and only saved 20k lol I’ll take my brand new, super efficient home.
That depends on whether you get a good builder or not. A lot of these newly built homes are cookie cutter garbage where the contractors use the cheapest materials possible and cut as many corners as possible and you end up replacing almost everything in 5 years because they didn't use quality parts.
@@TheCobruhAlienat0r that is why you dont use garbage builders and why you dont build a cookie cutter house.
Some old houses are made with better material..than these new Instant houses.
As long as the house is built by a good contractor. You can’t beat a new house. Everyone would have one if they could afford one.
@@kennethobando5755 I would have a 100-200 year old cabin with a wood stove and love it. As a kid we lived in a village of about 300 in such a place and I slept on the screen porch year round with the crick just a couple hundred feet away, which was the source of water to flush our toilet. Lots of stars at night and bonfires with the neighbors, and enough space to use the potato launcher.
I'll redecorate when the mortgage is paid off. Maybe. I'm fine with 4 walls, roof, heat, stove. Hot water at my beck and call? Amazing enough.
grayandgray Amen to that👍
@Big Bubba yea, but putting money into something you don't even own and can be taken away is as Dave would say "STOOOOPPIID" patience is for winners.
As someone who has been searching for their next home, Dave is totally on point. Building a house is like shopping off the ala carte menu -- EVERYTHING is an upgrade. To get what you want, you end up busting your budget very quickly. I’d rather see everything laid out and know exactly what I’m buying as is. Sometimes you can walk in on a deal and pick up a brand new home that someone had built but couldn’t close on it. The builder wants to unload them in a hurry and you can get it for thousands less than had you built it yourself. I did this once and made $$$$$$ when I sold it.
If you already own land I would build.
Exactly
My fiancé’s mom owns land and said she would give us some land. I was thinking about having a modular built
Exactly!!!
Especially if you have the time and competency to do some of the work on your own.
And if it is the terminal house that you will live in with no intention of moving. If it is for life why not make exactly what you want.
“That color of orange just doesn’t work anymore” 😂
Enjoyed building my house. Builder stated that I was the most meticulous person he ever met. I ended getting divorced. So true.
me too. builder thought I was great, wife didn't.
@@dodgeplow LoL sorry to hear that
@@ilovejesus9303 thanks. I can laugh about it now. it was a decade ago; you live and learn. Happily remarried.
I've always wanted to build my own house to fit my personal needs. Being 6'10", I have to duck under normal sized doors. It's little things like that were I'd want 8ft doorway, higher kitchen counter and a shower head that I dont have to bend down for. Of course you can make those changes to an already built house but it's still always something I've wanted.
You should. Because you deserve to be comfortable and avoid head injury.
username checks out.
I thought being 6'5 was too tall lol
@@caoimhemouse4933 I'm 90% sure I will, just have to get that nest egg built up. Couple years away from finishing my electrical engineering degree with no debt so hopefully it won't be too much longer.
@@warrengslab it pretty much is too tall 😂😂 only a few advantages 😉
For my example I bought a property, had a trailer on it, lived in it for 4 years, saved, spent 600K on building a new house, tearing down the trailer, adding nice landscaping. Bought it for 150K in 2012, spent 600K, now it’s worth almost 1.1M
My dad built a 4,500 sq ft house for $280k with his own money. Sold it 4 years later for $600k. Made a profit. He's a contractor so he has all the contacts to make new houses. I'm planning on making my own smaller house as well
What Sq ftg are you thinking about building? I'm 18 living with my parents but want the first place to move out for good in to be a small house I build for the experience and the luxury of choice! I careful to not be unrealistic and immature about the decisions.
This is amusing and SO true!! My husband and I built our 2nd home together and the process was incredibly stressful; having to babysit the blueprints, having to get stuff corrected and dealing with a s-l-o-w building process. I learned a ton and thankfully my husband and I were a unified team throughout and the excitement of moving in helped cushion the annoyances. Not sure I would build again.
One of the main reasons to build new is the energy efficiency. New homes have a much higher code requirement for furnaces, air conditioners, insulation, energy seal...etc. I have friends that live in homes that cost $500 a month to heat in the winter. Our latest project, the Open Book Build, is costing $80 a month to heat in the same climate...way more efficient and comfortable. good stuff
Amen!!
Hello, what area do you build in? 🙂
Depends bc. Older brick homes are way more efficient that new homes today 😅😅
Buy something that needs cosmetic repairs and build equity 💰👍
“Don’t worship the house!”
I like Dave, but like Dr. Laura, he needs to work on his listening skills. Should have spent more time finding out EXACTLY what her question really was, cuz he clearly wasn't answering it.
I disagree because Dave basically answered the question with details and didn’t hide anything. What more do you want him to do? Do you want him to simply agree?
He is nothing like Dr. Laura!
@@darkphasex Well... for one thing, he could have a little intellectual honesty and humility and admit that there's no way on earth that a 5 minute phone call with a person he's never met could result in anything close to accurate advice on the biggest financial decision of a person's life. This is my number one complaint with Dave Ramsey. He speaks as though he's an absolute authority on all financial decisions. Meanwhile, financial advisors who have a decades long relationship with their clients still spend weeks consulting with those clients and examining options in minute detail before making a recommendation.
I like my 80 year old house.. but then again I'm not keeping up with the joneses or HGTV garbage.
True... new builds, never have enough character... imo.
Watching HGTV is a sure fire way to make you hate your home!
Holley Johnson opposite for me
The Joneses are insecure people that should carry no weight on what you want to do personally
So you don't have an open concept where you can see inside the bathroom from the kitchen? Lol
As a builder and a former realtor and appraiser, Location, Location, Location is relevant to this scenario. Houses grow mold and need major work in east central Florida at least every ten years. They are overpriced and ALWAYS need work.Things to keep in mind are 30 year shingles are a brand name, not a truth, AC's need replacing inside of 10 years these days, plumbing needs replacing within 10 to 15 years, paint bi-yearly, etc... Cosmetics are irrelevant to these problems. Add 20-35K every ten years just for upkeep on a used home in this region. A top notch, quality builder is your best bet and yes, they are hard to find. Homework matters here. Building materials are expensive right now so your budget matters!!! Build for quality instead of show and you will be better in the long run. One final thing to remember, in appraisals, the land is the value, not the improvement (house) on it. 100k kitchens and 50k bathrooms add zero value, unless your neighborhood dictates it in the overall value. Happy house hunting!
Eddie Adventure
Thank you for the very expensive advice i didn't have to pay for.
@@jjjsmith2497 Your welcome. My realtor counterparts hate me....lol. as far as my builder " friends", well, they want it and wont pay so you get what you get. It's a very expensive lesson for many.
Eddie Adventure 🙂
Location is queen.
Have an account for maintenance and repair just like for your car. No surprises.
And this is why I rent. They maintain, I move when they quit doing so. They provide the appliances, I never have to move one single one nor repair it - and they repair very quickly. They pay taxes, I get a renters credit for taxes too. They have to sell it, I can move when I need, pronto. They shovel and mow, I enjoy lots of green space if I choose my complex right. Or my house. There ARE house landlords that will mow n plow.
If I ever had had consistent income, I might have lived differently. But the downsides of ownership always outweighed the benefits for me.
I don’t agree with him on new or old and getting more for your money. People buy housed and later find out there’s a lot to be fixed or repaired that they did not see or catch I can go on forever.
Bought a spec home and wouldnt do anything different if I could do it over again. New build, everything is covered for an entire year and amazing warranty on my roof and HVAC. Where I live HOA's exist everywhere (new or used), my home has appreciated far faster in the 3 yrs I've been here than if I had bought a pre owned home plus all the used homes I looked for over a year needed work and there wasnt any difference in price. I looked for over an entire year. Buying from the builder was a lot less stressful (no bidding wars or BS from the owner not helping to pay for closing costs etc... like we were also running into on pre owned homes). Our rate was unbeatable at the time from the builders lender and they gave us 6k towards closing. Another thing Dave isnt considering is the fact that all new homes have to follow new EPA regs which means better windows, better insulation, etc... Any home before 2005 or so wont have these benefits. Our electric bill for a larger home is a few hundred less than it was in our 2001 home that we sold. You've just got to do your homework.
@Big Bubba Property taxes were already higher somewhat for where I live due to the fact that it is a master planned community in the boonies and we have to pay additional to bring power and water out here. In case you didnt know, when you buy a brand new home you can elect to pay lower taxes on the property for 2 years (raw land). Regardless, the state I am in has some of the lowest property tax rates in the country. I haven't noticed an increase that has shot up my mortgage. All the other things I mentioned are still reasons why regardless of whether my taxes increased $100 a year it's because I am making money off the value of my house all while saving a whole % on my interest rate versus where I was before and my electric bill also outweighs any small increase in my property tax.
Would have like to have heard where she was planning to build. She’s from Los Angeles. $$$$$$ - Dave just went on tangent with it haha
There's plenty of land left in the valley, but permits are what drove constructions costs up.
@@kevinclass2010 cost of labor is also more expensive there
I built my house in 2017 using cash and no mortgage. Cost about 150k total, 3,600 sq ft, tax assessment is 385k market value probably well over 400,000 at the right time. There is instant equity if you build a house correctly and cost effectively, build it not cheaply but not extravagant either. But you need capital going in a, interest on a construction to mortgage loan would probably hurt the equation. Unless you were building it to sell quickly.
This isn’t true in our circumstance. The most inexpensive Used homes in our area are around $230-250k and that was looking at about 1500 sq ft. We were able to purchase a new build with a loan amount of $196k that is also 1500 sq ft. I think if you use wisdom and don’t purchase all the unnecessary upgrades this doesn’t really apply. A lot of what Dave Ramsey says is a one size fits all approach like when it comes to credit cards and paying off debts smallest to largest. I get it and it makes sense if you have little self control (and most of us do) but if you are disciplined sometimes what he says just seems silly.
If your preference is new than that’s what it is. I believe it really depends on the location you build in and how long you plan on living there. Our starter home was a new construction but we bought in an up-and-coming area so we had 30k instant equity after closing and after living there seven years before moving to our current home we had built up over 80% equity. It really depends but we love new all the way. The only thing we don’t buy new is cars because of instant depreciation.
pretty much
All cars not instant depreciation. Mustang Cobra are worth more than it was in 2003 Also 96 Supra is 100k. And a M5 CS is 200k lol
I've purchased 2 brand new home's in my life, and there is nothing stressful about it....Whatever you want dear.....too easy!!
I HIGHLY disagree with this one. My husband and I recently finished building a house on 5 acres. It was a raw piece of land. We put on a well, septic power, and built a house.
We live in Washington State. We built a 5 bedroom, 2.5 bathroom home on 5 acres for $337! Our home was appraised for $640k the day we moved in! I think Dave is a little too rich for this topic. The “decorator”? That’s absurdly strange. The common American family doesn’t hire a decorator. Know your budget....and stick to it. Do you research and you’ll get it done. You’ll double your investment immediately! You’ll avoid paying PMI because (not all of us buy a house with cash). We have bought a house already made and built... yes it was hard. Yes it was trying but it’s absolutely possible to stick to a budget and timeline that works for your family. $337 may seem like an insane amount in other states but for Washington that’s a great price. Depending on the state you build in, your base price would be much less.
Same!! Just built in Washington as well. Much less expensive than buying
Myballsitchsomethingfierce just under 2 years
What area you located at? I'm in Wa as well, Puyallup area. Did you guys buy and hold onto your land for awhile before you built? Did you hire a company to build your home? My wife and I are looking to do the same, been trying to find 5-10 acres of land first.
Jake Pappuleas We are so close! In Graham. We bought our land and built almost as soon as we could. We hired a “build on your lot” builder. I would not suggest that for many reasons.
You get it! See my comment to support this idea. Good Day!
A lot of new houses aren't built as well because old lumber is stronger than new. Plus not enough people who know what they're doing.
Alex Dull go blue!
Plus lumber was better quality "back in the day"
Now it's all very poor quality.
Yes, I realize that agrees with what you said about strength.. but even just functionality (holding drywall etc.) and cosmetically it's affected.
Why would you build a modern home with lumber? Weak bones and less longevity.
Builders are substantially better now than they've ever been. Technology is far advanced than it was. Old wood vs new wood is an even dumber comment
@@kourt2469 they don't make trees like they used to
The New builds have the latest and greatest energy codes and building codes. Much cheaper to maintain. Existing there a a ton of things you have to remember. Older homes have a lot of hidden items. Old A/C units, windows and plenty of surprises.
Trust me I-have been doing Real estate for 19+ years. Worked to top 100 builder doing land and development, operations and sales management for 27 agents. I used to teach a new construction boot camp. Helping people through the process and EDUCATING them the difference between new and existing.
Glad to still have you around. What’s your website for when I’m ready to build my house?
Do as I say, not as I do.... She didn't even get into her own finances. He is projecting his problems on her. I normally agree but I did my own house, and per square foot I didn't pay more, I saved money.
Rules for thee but not for me.
You need to hirer a buyers boker/agent who has a certification in new home construction.and sales. You need to hire a buyer's agent on your behalf anyway even if you do not go new but re- sale as well.
There are new homes in subdivisions new builed track homes were VA Buyers especially find home less expensive than the resale. Interview and you must always do your due diligence.
When you interview your buyer's agent asked what certifications they have besides their license and being a member of NAR. National Association of Realtors
Thank you
I have worked for several customers that thought they were building their dream house but near the end they decide to sell it and buy another house. Like Dave said, dreams change and many people hate the project/process so much they don’t want to be reminded of it by living there.
It all depends on what you mean by build your own home. Custom built from scratch, or buy a house from plans from a tract builder such as Toll Brothers/DR Horton etc.
My problem with new builts are the added costs for upgrades , fence, blinds(so expensive!) etc. Like my cars, I like to buy 2-3 used houses so the previous owner already did most of the hard work lol
Building a new house is great when you can build it all yourself - my husband and I are paying cash as we go and are at $56 dollars a sq foot for our new home. Would be very expensive if we didn’t do it ourself but if you have the skill it’s the cheapest option and easiest to cash flow
if this is your final home i would build without a budget simply to get what you want now vs buying cheaper items with the mindset of getting what you really want later when you can afford it. i did it with no regrets
Depends on the location, age of the existing home, use and how much work you are going to have to put in. Most of the places I was looking at needed new floors, paint, kitchen, bathroom reno, etc. If I have to do $60k worth of work to get it modernized I might as well just have it built for a bit extra with the peace of mind knowing that the plumbing isn't going to go out, the roof is gonna spring a leak or whatever else could go wrong.
In Oregon you will save a lot of money in yearly property taxes buying a used house You pay on the assessed value. For example a twenty year old house worth $500 thousand today probably is still assessed at $300 thousand. The new buyer only has to pay property taxes on the old assessed value (it does go up 3% a year though). Build or buy a new house for $500 thousand and you will pay property taxes on the full starting value and it’s assessed value will increase 3% a year too.
Let’s say older house taxes are $4,500 per year the brand new house taxes will be
500/300 x $4,500 = $7,500. Something to think about when buying a house in Oregon.
Thanks! I live 30 minutes north of Portland!
He said "death on a budget" that's hilarious to me 😂😂😂 that's t-shirt right there too.
I always love Dave Ramsey's honesty. Top guy!!
I'm not sure honesty is the word I'd use. More like blunt and self-assured to a fault. He's the Web MD of financial advice, taking minimal and incomplete inputs and then using generalizations to give advice that he expects you to blindly follow. Compound that with the fact that many of his listeners have their pastors and church elders browbeating them into following the advice, and you have a recipe for lots of poor decisions. There's a reason personal financial advisors exist, just as there's a reason to have medical professionals instead of relying on Web MD. The information and guidance you use to make biggest financial decisions of your life shouldn't just come from a book you bought on Amazon, a 5 minute conversation on a radio show or even a $100 course you took over the weekend at your church.
He didn't differentiate between buying a new construction and building a custom one. Or did I miss it?
I think building is fine if it's done with intent. Exemple: I wouldn't judge someone paying the premium of a new home if his aim is to build a up-to-standard energy efficient house, something you won't find on the market because the endgame is to reduce his carbone footprint because it's a very important matter to that individual, or say build a specific house made for someone with special needs, etc.
The outdoorsy types who want to stick a tiny house on a piece of land to get more yard may come out ahead here.
Agreed. Tiny houses built on big lots are becoming more popular, mostly because (with the help of solar panels and propane) you can sustain a large amount of self reliance. Plus smaller houses are easier to heat, discourage hording, and reduce overall footprint
What's the point of going into that kind of debt and you can't even do anything outside of your house besides run a lawnmower?
A new spec home (never lived in) with the floor plan that fits your needs, with colors/finishes you like & with a lot size/location you approve of is great. It's ready NOW. It's hard still to check all those boxes and to coordinate selling current home or renting it out and closing on new one.
Dave is absolutely right. It’s just a box that you live in.
I think there’s something, however, in taking special pride in where you live...not so much what you drive...true enough. Pride in homes builds good neighborhoods IMHO.
Elite Clinical Researc Ok!
Your house is usually the most stayed in place you will be the rest of your life. Not really just a box, it's somewhere you need to enjoy somewhat
Ya, wouldnt you want to enjoy where you spend most of your life?
Yeah and be locked in during pandemics...
ALWAYS PUT AWAY EMERGENCY REPAIR FUNDS JUST INCASE. NO UPGRADE UNTIL THE HOUSE IS PAID IN FULL. NEVER GIVE YOUR BANK A FREE UPGRADE BECAUSE THE HOUSE STILL BELONGS TO THE BANK IF NOT PAID IN FULL.
That is partially true. If you owe $10k and the bank forecloses on the house and it sells at auction for $150k after taxes and fees, the bank owes you that $140k.
After living in Manhattan I think I will live next to a junk yard rather than deal will a co-op board or HOA fees. But I will not built.
Building a house does not cause divorce. Divorce is the product or poor communication and different value systems and expectations. Building a house can be very attractive if you plan on finishing off parts of the house yourself. I have known folks who built houses and they finished off the basement and are way ahead of the game. If the contractors do everything and you have many upgrades you will be 20-30% above a comparable house in the area. A good marriage can be strengthened through the house building process if both parties are paddling in the same direction.
For me, buying new in Texas 2 years ago was a MUCH better deal than buying an existing house. I bought my house pre-built for $210k. Houses around $200k that were already built were very old and outdated in the DFW area (where I live). So, I decided to build a new home for the same budget. It took the builder about 7-8 months to complete my home, and at the time of closing, my house had already gone up in value to around $225k. Great deal. Today, my house could sell for $280k. I got a beautiful brand new home for the same price as an outdated, used house.
You can see it but the other houses went up in value as well. So nothing was gained 😅😅
Must be different in America. Here in Scotland you get way more for the same money if you build it yourself. You also get a blank canvas that you can adapt to your own needs. That and the lack of inherent problems through rot, dampness etc makes building yourself a no brainier here.
Built our current house (22 years) and was the opposite experience of Dave’s comments. Paid less per square foot than used market, lower stress on our marriage, no budget or schedule issues. Again, Dave is speaking in general but there are always exceptions.
Both have pros and cons. But buying a used house is less of a headache and sometimes could be cheaper.
less headaches, not cheaper in the long run
Buying used is not always less expensive. For us it was location driven. We wanted used about 10 miles from where we built (same zip code). Used was much smaller, outdated meaning it needed a lot of work before we could move in for more money than we built one for. 18 months later our same floor plan in the same neighborhood is going for $50k more than we paid. Both neighborhoods are considered desirable and very sought after to live in central Florida.
Thanks for the advice Uncle Dave!! I’ll keep that in consideration as I look for houses. It’s great how you tell us the real deal.
I'll build mine in two years. I'll cash flow it and already have the lot. Probably my husband and I will fight a lot.
Buying a used house is not the always the bargain you think it is. Older homes may have asbestos issues, lead paint, aluminum wiring issues, failing cast iron waste pipes, galvanized water pipes corroding, and structural/foundation issues. One example occurred in my area of my state. Approximately 30 years ago, a cement company poured hundreds of foundations using faulty cement. Now all the homes and condos where this cement was used have shifting foundations with huge horizontal cracks running through them. My 80 year old neighbor suffered this fate. It costed him $170,000 to have his house raised and foundation re-poured.
Easier to build a "1 year" dream house when you're the builder. The joys of being a self-employed contractor!!
I respectively disagree! Used housing is "cheap" and well worth it. Until you have to tear practically half the house apart to remedy terrible choices the contractor and former owner made to keep things "low cost". Both my houses were used and both had EXPENSIVE design flaws I could have prevented for very little additional cost had I directed the construction.
Good points! So many homeowners are unqualified (certainly not licensed!) to do electrical and plumbing, but they do it anyway! Then you find out some guy 30 years ago put in substandard wiring (which might not have been substandard then, but is now) which is overloaded or frayed, starts a fire, and burns your house down. That would never happen with a legally built new home.
In 2020 in South FL, building new w a builder costs less than buying used. $190 per sq ft compared to the $225-300/sq ft for a 20-75 yr old house.
Not the norm, but it is our current reality.
Agreed, old piping needs fixing and it costs. Monthly repairs to upkeep and older house. And like what you said, fixing the previous owner’s mistakes.
@@petergriffin7121 piping, roof, fascia damage, air conditioning units, water heater, hurricane code windows & doors... so many things to cover without even considering decor or furniture.
New build seemed to make sense for our situation.
@@businessacc179 you’re practically building a new house. Might as well get a newer one with less problems
My home is zoned for multiple units...I'm building a small 2Bd, 1Ba in my backyard to have a rental income. I'm nervous, first time building from scratch...I've heard nightmare stories....wish me luck!
You'll probably have more trouble with rentors than with the building process.
But good luck!
Scorpion
Thanks for the 🍀. As for the renters...I have 4 other rental houses...never had even one problem. But, I do use a phenomenal Property Management company, so they handle any potential problems.
@@caroleehubbard8380
Ah smart woman!.... good on you.
Carolee, I want to do the same... that's AWESOME! I'm going to an information seminar Saturday!
LGnLA
Yippee! Have fun! It's super fun! Almost addicting in a way!
0:54-0:57!!!!
Facts. It's a curse...that hardly anyone believes to be true;
Sorry if this happened to you or a loved one.
Haha. "That color of orange just doesn't work anymore."
That a women talking, if you are single man you can build your own house easier, because most men don't worry about stuff like that
It never did. 😆
Amen lol
My brother lost 30,000 bucks to a bad contractor when he had his home built. He would have made out better with an off the rack home already built. And guess what in 10 years your new house will be a used house.
That's some interesting logic. It's true that in 10 years, my new home will have 10 year old appliances, a 10 year old roof, a 10 year old furnace, etc. All of those things will still be well within their normal lifespan, and I will have spent zero dollars replacing any of them. Can you say the same about that used home that already had a 10 year old roof, furnace or appliances when you bought it? Um no. You can't. So the money you thought you saved was actually just deferred for a few years until you had to replace all those things. Either that, or you managed to limp along with what you had, and now you have 20-year old stuff that is all on the verge of crapping out on you.
@@McScott76 I was not talking about a used home I was referring to a custom home which in most cases is way more expensive then buying new construction ( hence an off the rack house vs. a bespoke house) Just like bespoke designer clothes are way more expensive then a new item of clothing bought off the rack at say J.C, Penny, And a new off the rack house usually comes with new appliances as well as a new roof and A/C and furnace.
I built in 2004. We could’ve built and or bought a used home with similar square feet and design. 14 years later our home is worth more money than the others
built in '03 same experience. plus $200k
I love my previous owner home . You always find many things you never expect.
I don’t know that I agree. When you build a home correctly you finance the cost and have instant equity in a brand new home. On a balance sheet basis it is a smart decision
Absolutely. My new home has appreciated 100k in 3 yrs. My previous, used home appreciated 30k in 8 yrs. It's a smart decision in many ways. Ours didnt cost any more than used houses after all the work we would have had to put into them we would have been the same cost wise and no weekend projects!
Big Bubba of course but there’s a huge opportunity cost in that down payment particularly now when stocks are so inexpensive
Big Bubba we both agree there is value in home equity but it’s tied up hence the opportunity cost. If you had that cash available in today’s market you are LIKELY to see faster gains putting it to use with underpriced stocks. So you would still have equity in a house you build which was my initial point and you would use the cash not spent on a down payment investing in stocks that are again LIKELY to go up soon
Big Bubba well yeah that was the initial point I made was the value of home equity. I’m just giving my personal perspective on an investing strategy which means it’s neither right or wrong 🤓
Dave, focus! Where is all the same stuff? How much you're making, where money come from, do you pay cash, where all of those questions? I mean I'm not even in the US and I want to hear about the budget in LA housing market.
Building a house was physically exhausting. It took 3 months to research and select a homebuilder, another 4 months working with the homebuilder to agree on a design and then select materials, and fixtures, and another month to select the interior and furniture. If I could go back and do it all over again, I'd still choose to build.
The biggest reason is the environmental upgrades. Better insulation, double windows, radiant floor heating, and a power generation system combining solar system and residential fuel cell.
Our energy costs are a net $3000 cheaper per year and our carbon footprint is nearly net zero.
It was a lot of work and there was some fighting but it's fine as long as there's communication, give & take, and mutual understanding that one person has the final say.
Your carbon foot print is larger than every one else. You built a knew house 😂
physically exhausting?? really??? did it get in the way of you spa time??
@Josh The annual energy savings and CO2 reductions from our house will FAR outweigh any emissions associated with the build.
We are exceeding 100% self-sufficiency (we sell the excess electricity). Thanks to the windows, insulation, and running hot water pipes under the floors, we only have to heat the house a few days during the winter.
@@johnpeters9903 Indeed it did! In fact, one of my regrets with the house was not including a sauna.
We had our second home built in a subdivision. It was a lot of fun watching a neighborhood grow from a cornfield, and having everything brand new, clean and tidy. And then the housing crisis hit. 13 years later we sold and made zero appreciation. Loved the house but it was a terrible investment. Our house was $250K but there were people who really bought at the top, paying nearly $400K in 2006. To this day they are still $100K+ in the hole.
I'm a Licensed general contractor in the Los Angeles area. After watching this video I would say i agree with a lot of the points made. But building your own home in my experience will almost always be cheaper. In short a median price per sq.ft for a house in Los Angeles can range from $350-$550. Typically a contractor will charge from $180-$300 a sq.ft to build a home. Using the price points above it's easy to see that you can save a lot of money by building your home. But huge down side would be the huge upfront cost of buying a lot to build on, and getting a loan or also paying for construction out of pocket. If money is not an issue, building your home will likely be cheaper.
This lady is in for a big disappointment. I’m a general contractor and you have no business building a custom home unless you can afford to spend twice the original budget. If you come in on budget, great, but dont ever plan that way because upgrades, cost increases, unforeseen conditions, and crazy building departments are a reality of the process
Contractor here. Building a CUSTOM home will always cost more. If you hire a company that builds tracks homes you can get a easy 20% equity.
Buying an existing home to a lot less stressful than building one that’s all I need to know lol. Good video
I really love new house, but now considering what Dave said. I am glad I am hearing this before
Me being someone who has owned houses in California, imo it's better to build a house from scratch than buying used. A lot of the times you're going to have foundation issues atleast in California. I've looked at hundreds of homes, and I didn't even need to get an inspection done to know the foundation was crap on the majority of them. With repairs on a used house, you're probably not going to save yourself any money vs building. I'm looking for land to buy to build my own house just not sure where. I've rebuilt homes I've bought before. The only thing I'd contract out is doing the slab as you don't save much money doing it yourself. Wiring a house is atleast 10k. I can do it myself with an owner builder permit for 2k with new romex wire along with everything else on the house to code in my city. If you can find land that already has utilties, then you'll avoid the usually hookup fees which are 10s of thousands. I recommend this only if you're a single guy as you're going to be working your ass off along with a bunch of headaches dealing with the permit process, inspectors, and utility companies.
People forget about trees when they build. It takes a lifetime to grow them!!! I didn’t realize how sad I was about missing trees until I built the first time. My second build was taking down an old old house and building on land with very established trees
Back in 2001 we built a new construction house and we picked a particular lot because of a huge beautiful oak tree in what would be the back yard. About three years after the house was done the tree started to die little by little. The trunk on this thing was pretty close to four feet in diameter and the branches were the same size of a smaller tree, in other words it was huge. I was concerned for the safety of my kids if one those huge dead limbs happened to fall on one of my kids playing the backyard, I wouldn't be able to forgive myself for their death. Also not to mention it was about 40 ft. from my house and if it fell on my house the house would be nothing but a pile of rubble. It broke my heart to have to contact a tree service company and have them remove it. After they left I went out a counted the rings on it's stump and counted out that that tree was 240 years old. That's living a good life, even for a tree. We sold that house a couple of years later and moved on. I'll never forget that tree though.
there are companies that specialize in mature trees. yes it is more costly. you have to decide what is important to you
Unfortunately I'm having trouble finding many residential properties made of reinforced granite
and add to that if the builder does NOT finish on time they pay your rent month to month after the expected finish date. Get it in writing or they will
finish your house a year later, maybe. Trust me on this, I know from my Aunt whom built a house a few years before mine. It got finished
1 1/2 years after promise date. Mine got finished ( including final walkthrough ) 1 month late ( and I got a check for aprox a months rent )
For a brand new house you will pay the highest tax right off the bat, at least in states like NJ.
That isn't the case here in my state. Used homes in established neighborhoods are more expensive. I could only find used houses in bad neighborhoods which were close to what I wanted in price. I looked at a house that I wanted in a good neighborhood $400K. I bought my house which had a 3 car garage which that $400K home didn't have and it cost me $160K. I did have to choose fixtures and paint put my yard in myself.
W . H . A . T. . S. A . P. . P.
+ 1 2. 1. 0. 5. 5. 6. 0. 7. 4. 2
I had a house built and in my area, it was cheaper to build. I built in a neighborhood development, so there is differences between that and just building on your own piece of land. But in my area (San Antonio), it’s a case by case basis on what’s cheaper or not. There’s existing houses near me that were not that good of a price compared to what I have now. So I can’t fully agree with this one. It’s different in every region and for everyone’s needs. So generally he might be on point, but there’s definitely other variables.
Where in San antonio are you talking about. I also live in san antonio. Are you building it your self or having it built?
Did you start with an architect or choose a plan from the builder's portfolio? Big difference. Did the builder have a comprehensive price or custom price at every turn? Many builders will build in subdivisions from a portfolio at very good prices because they are competing with the spec homes in the same neighborhood.
Yes, same in my area... which is one of the reasons I'm considering a new build instead of a pre-existing home.
It will save me at least 45K to build.
@@scorpion8rage Have you gone through the process in the sales room? My daughter and her husband tried to get a Coleman home built. From the down payment to selecting something better than FHA minimum, the price jumped $45,000. $600 for 20 ft of tile backsplash in subway pattern rather than checkerboard pattern. Same time, just an alternating pattern.. Many buy the house at rock bottom salesroom no upgrades price and have the upgrades done after at 1/2 the price.
@@idadho
Yes, I've already fully compared with a builder and unless I change any of my plans the house will come out about $45K cheaper than an already existing home in the same area.
The area is high-growth - high-demand. Pre-existing houses don't even stay on the market more than a week right now (usually gone in a few days)... this all drives up the prices (people in a hurry) equaliing... cheaper to build.
Also, it probably helps that most have the misconception that it would be more expensive to build (like I did).
the biggest problem is corner cutting and cookie cutter builders who don't do quality work. I've seen some horrible new construction.
I love this guy's personality lol I'm currently envious of my sister in-law who is currently getting a house built while I'll be doing my thing moving around in the Navy with my family, this guy changed my mind haha.
A lot depends on the value of the land in the area you like. If the land is extremely expensive like Los Angeles, CA, you are best to buy a beat up old house, tear it down and build a new house in a good area. If land is not expensive, e.g., Kansas City, Missouri or Jackson, Mississippi, it may be better to buy a used house, rather than spending a lot of money to build. In other words, the construction cost may not be worth the investment when you finish building. Also, you have to rent for about 7-12 months during construction, unless you can live with family, etc. Also, property taxes on a new home can be very high.
I bought a new build and man we got it cheap. Super lucky. No fancy appliances, minimal AC but because it’s new it all works. Our house has already went up in value 90k since we bought it 3 years ago.
I keep forgetting that when other people say "build a house," they mean "pay someone to build a house."
educate yourself so you know what you want and to identify what is not correct
I built a house 20 years ago. I planned it, it was finished on time, and I still love it. Yes, a person would be upside down if they immediately tried to sell a newly built home, but if your planning on staying I'd build. Most of the homes in my price range were built right after WWII (60 yo) and needed electrical, plumbing, and a general overhaul. So they're in my price range and need 50-70k of updating? Then it is out of my price range. Stop typing....I am not handy at all, so I couldn't do it.
Amen!!
I never cared for a big house with more bedrooms and bathrooms than I needed. When I applied for a mortgage loan I was approved for $275,000 but I got my house for $170,000. Being single, I got a house big enough for ME with room to spare if needed.
Never understood why some people feel the need to brag about how much house they have or the need to buy a home with 4 bedrooms when you're living on a 2 bedroom budget.
I'll build mine, I understand why people says it's more expensive, because they won't actually build it. In my case I plan to use my own hands and my 3 days off.
Yup. Humans are supposed to build their own houses.
My husband’s family all built houses in the past couple years (two siblings and his parents), and they’re busier working on their new houses than we are with our 1990 fixer-upper house. Paint (toooons of painting to do in those huge houses for 2-3 people each), window coverings (which cost a fortune), sprinkler systems, laying sod, fences, adding cabinetry, filling empty rooms with new furniture, and finishing their basements-and one basement is urgent, because they’re financially tight and need to get a renter in there to add to their income. I would love to have a newer home with more space that doesn’t need so much updating as ours does, but man, brand-new homes seem like money pits!
I am an FPU Class coordinator, and have agreed with Dave on literally everything, until I saw this. Dave certainly knows wayyyy more than I do about real estate averages, and "in general" principles, but this is simply factually incorrect in some areas. We have built new in the Permian Basin (Texas oil country), and in inflated housing markets like this which are led by a stout local economy and a low local unemployment rate (we are at 1.7%) (pending market crashes, of course, like the '84 oil crash), it can definitely be cheaper to build new. It was for us by tens of thousands (probably about 10%, maybe more), and the day we closed (2014) we had $30,000 in immediate equity with full builder warranty of two years included. How do I know that equity amount? Because oil companies were moving some of our neighbors in 2013 and 2014 back to their hubs (Houston, San Antonio, Dallas, etc.), and they were bringing that much in equity with them when they sold here, having just built their homes months before (now keep in mind this was not a high-end, custom build). So in our situation, it was a no-brainer: build new!
In our area, new homes were marginally more expensive than existing homes ($5000, which works out to $4/sq. ft. more, nothing for someplace you place to live for a few decades), and the existing homes didn't have any of the features we wanted, such as large open spaces. Many existing homes still had those almost useless dedicated dining rooms that nobody uses except special occasions. What a waste of space, and not conveniently located out of the way so you could make it into an office. New house has the distinct advantage of all the new major systems like HVAC. Didn't have to replace the roof for 15 years, and didn't have to replace the HVAC for 25 years. Can't say that of most existing homes.
Everyone is different. If you have the money for it? Why not build your dream house. Get a project manager and build that home that u always wanted. Buying a used home feels like you are seettling for whatever on the market. Your force to like something