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Thanks to Mark and Elaine, I am getting a bigger house on a bigger piece of land in a much better area, instead of buying a smaller house on a smaller piece of land by a known builder here. I pulled back a $5,000 check I paid this builder after reading their book and bought a piece of land instead.
Shankar in Mountain View, CA

Try one of our new Construction Bargain Strategies for free. Coupon code: CBS. One strategy could save you $1,000 or $10,000 or maybe $50,000 when you build or remodel.

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Posted by Mike & Carolyn in Smithville, MO on 11/29/2008 1:03:53 PM

I received a written offer on the new place (about a week ago).  I said I would look at any offer but honestly didn't think we would get one.  If it was 'big enough' I guess I would sell and move on to another project.  It is nice to have options.

The offer was for $325,000.  I said we would think about it and get back to them but there truly wasn't much thinking to do. $325K is not big enough.  The land is worth $180,000 to $210,000 and then you have the guest house already built and the large barn (with silo... for anyone that needs a silo.)  Plus we are zoned agricultural, which makes our taxes next to nothing, $32 this year... something hard to find and have all the modern conveniences such a sewer, gas, cable TV and only 10 minutes to Target.

No, we didn't pay that much for the land... but it doesn't matter what we paid.  It matters what it's worth. I get the benefit of being in the right place at the right time to get a good deal... not the guy buying it from me.  I'm estimating that the total value after the main house is built to be around $850K which will give us $300K in equity, not the $60K being offered now.  I can wait a few years for $300,000.

Friends of ours think we're crazy.  They said take the money and run. Who knows if our current home will sell?  Which is true, it may take a while for it to sell but it will. And NO we don't have it on the market yet... there is no way I can live in a house and have it 'show ready' every day. Not with kids and dogs.  The house is on 1/2 acre in the city surrounded by acres of trees (7 on one side and 23 behind).  Deer and turkey in the back yard.  It will sell. Good schools, great community and close to everything.  Besides… if it doesn’t sell I can rent it for the income for a year and still come out ahead. 

All we have to do now is get the floors done so we can get our occupancy permit and get moved in! At the pace we’re going I figure we might be ready for the spring real estate market.


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