How is custom builders in Tacoma WA, Hiline Homes, etc

Question

Hi, I am researching the idea of buying a single lot in Tacoma urban area to have a house built by a custom builder such as HiLine Homes, True Built Homes, Realty Homes. I did a lot of research online, and knew those builders construct homes just meeting the code. Their e building starts with the foundation, they do not prepare the land, do not connect utilities to city mains.

Questions:

(1)How is the idea?

(2) Are those builders dependable?

(3) how much to have the city to connect utilities to the new home? (such cities charge a huge one-time facility improvement fee of 15K just for water connection to new construction).

(4) All of all, I wish to know if this is profitable to do single new construction for sale?

Lei Pan · Answer

How about UBuilsIt dot com ?

Tim Holmes · Answer

@Lei Pan Your right about the lot being raw. Part of the 10k misc. was removing two end dumps of stumps and exporting 300 yards of dirt to level lot.

Lei Pan · Answer

Hi, Tim, your number are very very helpful. I assume your lot was raw that never had a house on before your new construction, right? thanks

Lei Pan · Answer

People here think the margin is too thin for building for sale. Maybe because we are talking low end neighborhoods. I listened to many BP podcasts, the guy doing this in Portland in middle and high end neighborhoods makes big profits.

Lei Pan · Answer

Hi, thanks to everyone for your great info!

Ryland, thanks for your inputs! My research seems indicating that subdividing often costs more than $20, correct me if that is wrong because I do not know how much it costs to subdivide in Seattle and Tacoma.

Ryland Taniguchi · Answer

In this price range, I recommend you get the lot for free such as in buying a house that you can subdivide into two parcels. Those houses sell for exactly $229 k and I think the margins are too thin if you are using hard money and paying $20 k for the lot.

Ryland Taniguchi · Answer

I've used Reality Homes (not Realty Homes) and their homes are not bad for the price per square foot. I wouldn't go with their cheapest packages as it is super super low quality materials.

Jay Hinrichs · Answer

@Lei Pan Adair is another of the foundation up builders in the northwest

I have built 4 of those.. really not a money maker spec build.. I built them on a large timber track we owned that I got 3 lots off of and basically I built the houses to get full retail for the lots.. would not do it again..

its a great owner builder project though with some instant equity.. one of the few ways a West coast homeowner can do that

Tim Holmes · Answer

@Lei Pan Back in 2005 I had a 2114 sf Elk Run built by Realty Homes in Federal Way. I liked their product, and it made a good personal residence, however I think the margins are to tight to be profitable for an investment. House 112k lot 45k sewer 21k permits 8k water 6k flat work 4k landscaping 4k miss.10k Total 210k. We lived in it for 8 years and sold for 290k in 2013.

Chris Stromdahl · Answer

I don't know anything about the connection costs, but the numbers look good at this point.

How is custom builders in Tacoma WA, Hiline Homes, etc

How is custom builders in Tacoma WA, Hiline Homes, etc

Investor-friendly agents in Tacoma, WA

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