Buy land and prefab house or buy house in WA

Submitted by andysantiagopr t3_11wmdrk in Washington

Hello I am interested in buying a house around Olympia, Lacey area and see how the houses are damn expensive. I was wondering whether it be a better idea to buy lots of land and put a prefab home there that could be lot cheaper than buying a house with a very small lot. Would like some feedback and some things I should know or consider before making next move. I am approved for like 250-350k so I want to do a good investment. Thanks in advance.

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AnAttackCorgi t1_jcyno8g wrote

I’d assume your idea is slightly cheaper but I always thought the largest expense is the land price to begin with.

EDIT: OP, as others say, land prep can cost way too much. I’d add reaching out to your local architect to do a preliminary feasibility study before you even buy a plot.

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Huge_Requirement9200 t1_jcyqezu wrote

Clearing said land is gnarly

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AnAttackCorgi t1_jcyqp7s wrote

That’s for sure. I’m and Intern Architect in BC and so many clients don’t research the feasibility before buying their plot.

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Huge_Requirement9200 t1_jczjby5 wrote

I'm on the ONP, lots of retirees come here thinking Sequim is like the desert southwest. Thick forest is really hard to clear!

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XNC_Oli t1_jcyo891 wrote

I looked into buying land and prefab (although not in WA), and some of the biggest costs were things like running power, water, sewage lines to the land (if not already there), building a driveway etc. ended up being significantly more expensive than buying an existing home, obviously ymmv. Another option is buying a run down, very cheap existing home and bulldozing it and then putting in a prefab.

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andysantiagopr OP t1_jcyoyje wrote

Hey didn't thought of that. You might be right. Maybe if the land has good amenities like running water and shit it might be fine. But I'll expand my horizons to these shitty houses 😂 it might be a good gig

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FuckWit_1_Actual t1_jcyqp7u wrote

Call a local septic installer and ask them what the typical range is for a 4 bedroom house. Mine in King county is about $31k with design/install.

Call a local we’ll driller and ask them the typical cost for a well in the area of the property you’re looking at. Mine is about $30k with a nice pump house and water system.

If it’s PSE and they don’t currently serve your property and they have to run a “line extension” that’s on them but the transformer and running to your meter is on you.

I know grays harbor county allowed owner installed septic systems in the past.

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wyecoyote2 t1_jcyu0fs wrote

Thurston County used to have a "typical land development costs" on the building department website. This was 5 or maybe longer years ago, and it was then about $60k or more.

Cost does not equal value. It is not unusual for an owner built residential property to exceed market value. You are doing one project.

Don't forget to watch for pocket gophers.

You might find it easier to buy a parcel with an old MH have that removed and build new.

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Obvious_copout t1_jcyozf0 wrote

With that budget you are going to be very limited with what you can do. I went through this last year and the infrastructure was going to be close to $100k. But in these times any property or land you own is better than nothing.

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andysantiagopr OP t1_jcypm12 wrote

Trues. I just see the prices of these shitty houses on the market and just say to myself if it is worth it or better off having something new for the same price. I prefer buying a property than renting

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Obvious_copout t1_jcywlko wrote

If you have any type of craftsman skills, you can do a fairly inexpensive "remodel" if you find an older house or crappy your house that doesn't have a ton of problems. After My experience last summer we just started updating our 1965 modular home. New floors, New kitchen cabinets, paint, trim, for about $2500. It's definitely not ideal, but when you purchase all you're doing is building equity for the future.

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crankybiscuit t1_jcyvr8q wrote

Keep in mind that it is much harder to get financing for raw land than it is for an existing residence.

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BeKindDontBlind t1_jczehu4 wrote

Look into the costs of the city/county permits for building as well as impact fees, retention ponds, and inspections

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Homes_With_Jan t1_jd0l7c7 wrote

buying land and building is wayyy harder than buying a house and fixing it up. Land is a horrible investment, if it's a good location then it's already expensive, if it's not you'll have to pray that it will.

But if you actually do, you'll need to clear the land, get it survey, put in a well and septic, put in electricity lines. Very very expensive work.

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the_Krebs_Cycle t1_jd16ycf wrote

Does prefab = mobile home? If so, and you may want to double check, but I believe mobile homes depreciate while traditional builds appreciate.

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non-member t1_jd080ox wrote

Now isn’t a great time to buy IMO.

Mortgage rates are up and property values have only slumped a little… if you’re able to hold onto they money and keep saving for a few more years you might just find yourself a better home for less with better interest rates.

There’s always the risk that rates and prices will go even higher, but I’d bet $5 they’ll be significantly lower in a few years.

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