If you are looking for additional space or just new space, you essentially have three options. Put on an addition, buy a home somewhere, or build a home on your lot. Customers share their stories with us all the time about why they chose to build on their lot (or wish they had!) and these stories can really open your eyes. Take a look at a recent study done by our Virginia office:
OPTION 1: Put on an addition
You can stay in the same neighborhood but costs are $175-$275 per sq ft with typical cost and time overruns of 20-50%
Case study: Addition of 22x14 family room to house off of Washington Blvd in N. Arlington. Initial estimate of $75,000 and 3 months. Final result was $100,000 and 5 months for a cost of $324/sq ft. And the rest of the house is still 70 years old with a basement that has 7 ft ceilings.
OPTION 2: Buy a new home
You will get the comfort and benefits of new construction but you will have to leave your neighborhood and pay way more than you wanted.
Case study 1: New community by a local builder in Vienna off of Beulah Rd. 4,100 sq ft home on less than a half-acre of land. No customization allowed. $1.7 million.
Case study 2: New home by a "custom" builder in N. Arlington, near Virginia Square. 3,500 sq ft home with single-car detached garage. No changes allowed other than choosing cabinet and counter-top colors (how "custom" is that?). $1.5 million.
OPTION 3: Build a new home on your lot
Live in the neighborhood you want, get a beautiful new home the way you want it, and save a lot of money.
Case study 1: Family bought an old house on a 3/4 acre lot in Vienna, near Mashie Dr, for $650,000. Demolition, site work, permits cost about $35,000. Bought a 7,640 sq ft (5,050 sq ft finished) Classic Home (Hampton model with options) for $420,000. Total cost $1.1 million. Although home was not for sale, owner still received three offers from $1.4-$1.6 million. Due to savings, owner only needed to put less than 5% down.
Case study 2: Young couple bought an old home on N. Abingdon St in N. Arlington, near Ballston, for $600,000. Demolition, site work, etc. cost about $32,000. Bought a 6,300 sq ft Classic Home (Abingdon model, all floors finished) for $525,000. Total cost $1.16 million. Appraised value $1.70 million. 4,100 sq ft home of similar quality by another builder sold on N. Stafford St. for $1.67 million in 2007.
Case study 3: Retiring couple had an old ranch home in Fairfax Station. Tore down and built 6,550 sq ft (4,400 finished sq ft) Hampton with hardwood, granite, etc. for a total cost of $440,000, including site work. Used their equity so they didn\'t have any down-payments or out-of-pocket expenses. Market value of home in 2008 is approximately $1.3 million.
With real-life examples like these, it is no wonder that building on your lot is the smart way to go. And with access to the equity in your existing home or even the immediate savings when building on property you just bought, you may not have to put any money down!
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